Kensington Mortgages

FloFlo

We are looking for a 75% mortgage, we have no ccjs or late payments but are over extended on credit to income ratio. The credit will be repayed when the remortgage comes through. We are using a broker and main banks were a no go and the principality due to the outstanding credit. The broker has suggested Kensington but I haven't heard of them before.

Are they sub-prime?

Are they ok to deal with?

We are hoping we could do 2 years with them on a fixed rate and then move back to a more mainstream lender.

Dave_Ham

Kensington are ok - they have been doing mortgages for a long time and therefore have a track record.

They are no more accepting of weight of credit than some mainstream lenders, which lenders have refused you and why?

FloFlo

Halifax and nationwide and then principality, these 3 would not consider the fact that the debt will be paid off with the remortgage - broker said that Kensington will as long as we pass the affordability.

Dave_Ham

I am none the wiser, did you pass the Halifax credit score?

You tell them that you are repaying the debt out of the funds and they make it a condition. Certain banks do have thresholds for remortgage for debt consolidation in terms of loan to value, but all very strange...!

Especially as Kensignton operate in lower loan to value than some you mentioned having declined you..

Can you please answer the following questions as no merit in using Kensington with higher rates and fees if you do not have to

What are your approx. ages and income and do I infer that you want 75% loan to value with the extra included?

Have you missed payments on any of the credit cards?

I would not think Kensington is the best home for your remortgage..

I cannot justify that further than a gut feel from the limited information provided.

FloFlo

Ages are 41 and 42, joint income is 45,500.

Loan is 75% to value.

Halifax would not agree us in principle, I believe it was due to credit score, yes.

Kensington have agreed us in principle after credit scoring us with the condition that we pay off debts.

We have no late payments or ccjs on our credit file at all, our credit score is poor on mine and fair on my husbands. On both credit files it says this is due to credit searches, debt to income ratio.

Can I ask about the debt repayment condition, Kensington have said they want us to repay credit cards and car loan but we would rather keep the car. Our broker said they will write to us 6 months after the mortgage to ensure that we have repayed all the debt but surely if we are up keeping mortgage payments and car loan without any problem can they insist we pay it off?

holly_hobby

If its a condition of the mortgage offer yes.

H

FloFlo

holly_hobby wrote: »

If its a condition of the mortgage offer yes.

H

I was just wondering whether in practice they actually chase this sort of thing up if payments are up to date.

holly_hobby

Your broker has already told you they will write to you for confirmation, as repaying this loan is a condition of the mge offer.

Say for example you haven't/don't intend to redeem (repay) the car loan, you will be in breach of your mortgage terms and conditions, and the lender may insist upon redemption (repayment) of your mortgage for the breach i.e they want you off their books .... (which would be understandible, and would not be able to be challenged in court).

So that would mean you sourcing an alternate mortgage lender (unless of course you will have the cash to redeem the mge in full ?), such an event occur.

If you can not, or do not, want to repay your car loan, then my advice would be not to accept the terms of the mge offer and pull out- as you appear to have no intentions of adhering to them.

Mge terms & conditions are there for a reason .... they are the basis upon which the lender has agreed to finance your mortgage.

Sorry if not what you want to hear, and if this comes across as a little surly, but it is so important that you understand the situation.

Hope this helps

Holly

FloFlo

Thank you for your reply, it puts us in a tough position, as to be honest we don't want to repay the car loan but if we must we will.

holly_hobby

Well its ultimately up to you how you play it, but at least you now know the consequences if you fail to.

At very best they will insist that you repay it immediately at that point ..... and well you know the alternative option they have !

Wish you well

H

typical_blonde

DON'T DO IT. As a current "customer" of Kensington, I can tell you that over the period when interest rates were held, they have increased the interest on our mortgage/or secured loan depending on what suits them, 5 times! Please avoid them at all costs x