The product has a rate set at just 0.05% above Kensington’s current fixed rate deals.
The launch follows joint research, carried out by Enterprise and Kensington among intermediaries, to identify the ideal mortgage for the current climate. Brokers said their top priorities were a three-year mortgage with no extended tie-in period and a product enabling borrowers to budget easily.
In response, Enterprise and Kensington designed what they believe is the ideal product. The scheme will bring confidence and certainty to customers.
Keith Street, Director of Sales at Kensington, explained: “With all the uncertainty over interest rates at the moment, this capped rate mortgage will give borrowers complete security. The rates are highly-competitive and they can only ever go down during the capped period, giving non-conforming customers total confidence in their budgeting.”
Martin Gracie, Financial Services Director at ‘Reeds Rains’ says, “We introduce significant volumes of business to Enterprise and this new capped scheme can only further enhance our overall proposition. In this market, the ability for our clients to budget for their future, whilst still taking advantage of any fall in rates is a real breakthrough”.
Michael Clapper, Chief Executive of Enterprise Group, says: “Brokers are crying out for a product like this - a straightforward mortgage, at competitive rates that removes any future stress from their customers’ shoulders. The timing could not be better as most experts predict that rates will fall over the next 12 months”. Clapper adds, “The support that Kensington have shown us by providing this product exclusively is a testament to the strength of our relationship. All our introducers now have access to a truly pioneering product in this market.”
The capped rate option is available only through Enterprise, on Kensington’s ‘very low adverse’, ‘low adverse’, and ‘high adverse’ products for both purchases and re mortgages. The cap tracks the lender’s SVR, has no extended overhang and is free of any higher lending charge.
Enterprise plans to hold further ‘product forums’ with their introducers, in order to continue designing appropriate products for an ever-changing climate.