Sub Prime Lender returns to UK market...

HAMISH_MCTAVISH

Kensingston, one of the largest supplier of home loans to borrowers with poor credit histories before the credit crunch, returned to the market today with a new deal. The move has sparked fresh hope of a recovery in the mortgage market.

The lender, which is now owned by Investec, the South African bank, unveiled a two-year fixed-rate at 5.69 per cent deal available up to 65 per cent of a property's value for "prime" borrrowers with a chequered credit history, described by some as "near-prime".

It is only available through small range of mortgage brokers. It said that more deals would follow.

Keith Street, head of Kensington, said: "Market recovery won’t happen overnight and, as you might expect, we need to maintain a cautious approach. We have combined our expertise with the experience and strengths of our parent, Investec, and are ready to improve supply and choice for customers."



The new deal will offer hope to thousands of borrowers who have been shut out of the mortgage market but the tight affordability calculations used by some of the biggest mortgage lenders.

Kensington insists that the deal is for "prime" borrowers with a good credit history rather than "sub-prime" borrowers with a poor credit score that it targetted before the credit crunch. However, it has said that it will be more flexible when looking at mortgage applications than other lenders.
Aaron Strutt, of Trinity Financial Group, the broker, said: "This mortgage is not designed to take on market leading rates, but to get some of the business other high street lenders do not want.

"There is no credit scoring and a more flexible approach to underwriting. Borrowers cannot have had any mortgage arrears or CCJ's in the last two years. Anyone wanting a mortgage that has been turned down by the high street could try Kensington."

http://www.timesonline.co.uk/tol/money/property_and_mortgages/article6931090.ece

Very interesting.....

The return of "near prime" lending will open up a big section of the population that has been frozen out lately.

It has been much flaunted on here that these lenders had left the UK market, never to return.:rolleyes: Apparently their demise was somewhat exagerated.....

the_ash_and_the_oak

seems that way - tho if they're lending to people at 65% LTV they're probably sleeping ok at night

HAMISH_MCTAVISH

the_ash_and_the_oak wrote: »

seems that way - tho if they're lending to people at 65% LTV they're probably sleeping ok at night

Yes, common sense would dictate that should be fine.

But the fact remains it's been impossible for those with bad credit to get a loan at any LTV, so this is a step in the right direction.

the_ash_and_the_oak

kinda disappointed that they don't go back and do some subprime lending in a way tho

davilown

Hardly a sub-prime lender though?

I think you may be a little bit desperate in you articles lately:rolleyes:

Reasons why? As a couple, My OH and I own just shy of £60k a year. Mortgage across the market - £189k + around a £50k deposit.

No before you all say that we can get £xxk, the difference between the sites which say the banks will give you and what they will actually give is huge. I know, I've asked and asked.

worldtraveller

Something more to keep the "I want, and I want it now!" generation, at least reasonably happy, I guess! :rolleyes:

ManAtHome

I reckon you'd be on a winner offering 65% LTV even if the customer said they had no intention of paying any installments - more like sub-vulture than sub-prime...

ThrowingStonesAtYou

worldtraveller wrote: »

Something more to keep the "I want, and I want it now!" generation, at least reasonably happy, I guess! :rolleyes:

Please elaborate, do you mean the younger generation who don't want to/can't save in a reasonable timescale to pay a deposit, or the older generation who want more and more dodgy mortgage borrowers to keep their house prices incredibly high to give them a feeling of wealth?

nearlynew

One minute the HPI cheerleaders are saying "it's always been the case that some people can never afford a house"

The next minute they're celebrating when these people are given a mortgage.

F*cking jokers.

Especially mcTittish.

Emy1501

HAMISH_MCTAVISH wrote: »

Yes, common sense would dictate that should be fine.

But the fact remains it's been impossible for those with bad credit to get a loan at any LTV, so this is a step in the right direction.

Kensington insists that the deal is for "prime" borrowers with a good credit history rather than "sub-prime" borrowers with a poor credit score that it targetted before the credit crunch. However, it has said that it will be more flexible when looking at mortgage applications than other lenders.

Can't see where they are saying they are going to lend to anyone with bad credit. Seems to me that they are going from subprime to prime borrowers.

bernard_shaw

Yeah, sub prime! Bring it on! Seems to me that all that irresponsible lending didn't quite do the job of crashing the economy enough last year! This time, they'll surely prang it big-style. Suits me, 'cos the poorer everyone else is, the richer I feel!