editor posted on March 17, 2011 08:37
Landlords can choose between a 2-year fixed rate mortgage for 5.24% up to 75% LTV, with a 2.50% fee, or opt for the flat fee of just £1,499 and pay a rate of 5.74%.
At 85% LTV there is a 2-year fixed rate mortgage at 5.99% with a 2.50% fee and at 80% LTV, customers can choose between a 2-year fixed rate at 5.69% with a 2.50% fee or go for a 5.99% rate with a flat fee of £1,499.
Following analysis of the BTL market, in terms of both future demand and rental yields, Kensington has reduced the rental cover it requires from 125% to 120% - enabling investors who are able to demonstrate affordability greater opportunity to build their property portfolio.
Charles Morley, head of sales and product development at Kensington, said: “Increasing demand for private rental property is one of the few areas that commentators agree on at the moment and consensus is that there remains significant opportunity for investors in BTL. The problem for landlords is that, up until now, there have been few products that have really played to those areas of the market where there is demand.
“But with our new BTL range, Kensington has targeted those areas of demand – providing landlords with the ability to borrow at keener rates.
"And, because we look at each application as a customer and not just a number on a credit score, we have been able to lower our required rental cover to 120% by assessing their circumstances.”