"We are excited to be introducing our new Step Down range, which we hope will provide a wider set of options for borrowers who have previously experienced a credit blip"
- Vicki Harris - Kensington Mortgages
Kensington Mortgages has announced that it has launched a new ‘Step Down’ five-year fixed rate product, aimed at clients who have previously experienced a credit blip.
According to the lender, the new range offers clients a standard fixed rate for the first two years followed by a reduced fixed rate for the remaining three years.
Kensington’s Step Down mortgages will be added to its Resi 6 and Resi 12 ranges. Resi 6 Step Down mortgages are available to clients who are looking to move home or remortgage and who experienced a credit blip over six months ago.
Resi 12 Step Down mortgages are available to people who are moving or remortgaging and who have experienced a credit blip more than twelve months ago. The Resi 12 Step Down range is also available to first-time buyers. County court judgements, defaults, payday loans, debt management plans, and credit arrears can all be considered in Kensington’s flexible criteria.
The Step Down range offers clients an overall saving in comparison to the equivalent five-year fixed rate while the product’s reduced rate after the first two years of the term provides them with added security.
Savings
Kensington’s Step Down offering presents clients with an opportunity to potentially make considerable savings. For example, a client borrowing £200,000 at 75% LTV with a 30-year term to buy a £300,000 home could save £3,587 over five years with Kensington’s Resi 6 Step Down five-year fixed rate.
In addition, a client purchasing a £500,000 property with an 80% LTV £400,000 loan with a 40-year term could save £6,943 over five years with Kensington’s Resi 12 Step Down five-year fixed rate. The table below provides further examples of the potential savings offered by the Step Down range.
Vicki Harris, Chief Commercial Officer at Kensington Mortgages, commented: “We are excited to be introducing our new Step Down range, which we hope will provide a wider set of options for borrowers who have previously experienced a credit blip.
"Clients have an opportunity to make significant savings in comparison to a standard five-year fixed rate while also benefitting from the additional certainty afforded by access to a lower rate after the first two years. This latest range highlights our commitment to developing innovative solutions for our customers while maintaining our dedication to leading broker service and exceptional service times.”
