Kensington Finance : Advice for a 22yr old FTB :)

freestyler

ok,to make things a bit clear - my Dads 73 now and my mums 56..she used to be a housewife but 2 years ago she started to work part time..currently she is in 2 part time jobs so in a way supplements my dads pension income [adds another 50 % id say]..and I'm talking about the Kensington mortgage company, the broker works for a mortgage advice firm thats all..we were told that in our special circumstance kensington were the best option because not only do they deal with such situations [old age] but they also allow to borrow a tad more than most of the high street banks..i mean say a high st bank offers 4 times ur salary ; however kensington would give 5 times the income but the catch being if u fail to keep up with payments ud get ur court order pretty quickly !!

if i did choose to settle with a more famed bank/building society for my mortgage then i wudnt be allowed to borrow much..since a few of the members on here have atleast heard of kensington i think i shud go with them,atleast they arent a scam or dont have a bad history or nething..unless some1 else has more information about them to prove the contrary

luckyfool

freestyler wrote: »

but they also allow to borrow a tad more than most of the high street banks..i mean say a high st bank offers 4 times ur salary ; however kensington would give 5 times the income but the catch being if u fail to keep up with payments ud get ur court order pretty quickly !!

Horses$%t

Kensington do not offer 5 times your income. On a Prime full status or Prime Self Cert deal they will offer a maximum of 4* income. On adverse rates with a deposit of over 20% then 4.25* single salary or 3.25* joint might be available. Sounds to me like your broker is recommending a "Self Cert" Mortgage fraud special. Definitely get a second opinion.

freestyler

That was just for example by the way,they dont offer 5*income exactly..And what do you mean by a self cert mortgage fraud special ?

Leon_W

Kensington are not just a subprime lender.

They recently moved into the prime market on residential and buy to let (with some pretty good rates too), so, as with many of these lenders nowadays, the lines are distictly blurred. Northern Rock now do subprime for example (funded by Kensington no less) but applying through Northern Rock will cost you more than going to Kensington directly !

If you have used a reputable broker then I can't see how (without knowing your full circumstances) you can go against that advice and as long as you keep up the payments then where is the problem ?

luckyfool. As I say, we do not know the circumstances and all your last post achieves is putting doubt into the OPs' mind when there probably is no need. Let's stick to the facts.

freestyler

and more importantly am i committing fraud ! :oS

luckyfool

Leon_W wrote: »

Kensington are not just a subprime lender.

They recently moved into the prime market on residential and buy to let (with some pretty good rates too), so, as with many of these lenders nowadays, the lines are distictly blurred. Northern Rock now do subprime for example (funded by Kensington no less) but applying through Northern Rock will cost you more than going to Kensington directly !

If you have used a reputable broker then I can't see how (without knowing your full circumstances) you can go against that advice and as long as you keep up the payments then where is the problem ?

luckyfool. As I say, we do not know the circumstances and all your last post achieves is putting doubt into the OPs' mind when there probably is no need. Let's stick to the facts.

Leon,

1. Northern Rocks adverse deals are funded by SPML not Kensington

2. Freestyler says he was recommended Kensington because a) Kensington will lend to old people, which is true but then there are numerous high street lenders who will do the same thing, and b) that Kensington will lend higher income multipliers than high street lenders, which is palpably false. Halifax, Northern Rock, any number of high street lenders will lend more than Kensington in typical cases if the client can prove his income and has a good credit score.

Freestyler - If your parents are signing the mortgage application form and it is a self certification mortgage then make sure that they fill in the income sections themselves and are happy with the figures being provided.

freestyler

I just rang up my advisor and yeah he said it is a self cert mortgage ; just did a bit of quick online research...is self cert pretty much like fraud since it seems they fudge with the income figures ? but at the same time it seems almost every one fudges their income these days to get a mortgage..my dad has enough savings so he is putting down around 27% as deposit..

luckyfool

How much does your dad and mum actually earn per annum and from what sources. How much are they looking to borrow and will they have any other monthly credit commitments remaining post completion?

freestyler

And once again I'd like to thank you for the effort put in to reply to my queries..appreciate it !

freestyler

My parents' combined income is around 22k per annum - Dads on pension [15k a year] and Mum on 2 part time jobs [7k a year]..we would like to borrow around 90-100 k for the house..no credit commitments since they always prefer paying for stuff from their pockets instead of resorting to credit cards,loans etc..