Kensington launches capped tracker range
Kensington is expanding its mortgage range into capped trackers as part of its commitment to innovation in response to customer and broker demand for peace of mind in the face of potential rate rises.
The specialist lender has launched its first two- and three-year capped trackers following feedback from intermediaries and customers that highlighted growing concern over possible increases in the Bank of England base rate after more than two years at an historic low.
Initial rates for 80% LTV two-year capped tracker deals are 4.09% with a 5.74% cap in the event of rates rising, falling to an initial rate of 3.34% for 75% LTV and 3.14% for 60% LTV with caps at 4.99% and 4.79% respectively. The mortgages track LIBOR and applications are individually assessed using Kensington's specialist underwriting expertise and technology.
The launch into capped trackers builds on the success of Kensington's first-time buyer range, launched in April, aimed at addressing issues faced by customers without extensive credit files.
Charles Morley, Head of Sales at Kensington, says: "The launch into capped trackers addresses growing concerns about rate rises and delivers a combination of competitive rates and peace of mind for borrowers.
"Research among existing customers and brokers demonstrated a demand for further innovation in our product range and our capped trackers offer a realistic cap to help guard against rising rates, which we believe will fill a gap in the market where few lenders are offering a solution.
"Maintaining our focus on competitive pricing and innovative products aligned to our principles of responsible, sustainable and intelligent lending is a further step in our aim to become the intermediary lender of choice by providing real solutions for real people."
In addition to these capped tracker rates, Kensington has enhanced its mortgage range, with free valuations for first-time buyers and free standard legals for remortgage customers. The lender has also cut rates across its products up to 85% LTV - including the introduction of a 3.99% two-year fixed rate at 75% LTV.
For full product details, download a Product Guide at kmc.co.uk.