Designed to fit between its existing near-prime and very low adverse ranges, the product is aimed at borrowers who have small amounts of adverse credit, defaults or other issues that may limit their borrowing capabilities.
Kensington’s near-prime max deal has a discounted rate of 4.35 per cent with fixed rates starting at 4.60 per cent. Kensington’s latest range also provides borrowers with up to 90 per cent LTV self-cert with borrower CCJs of less than £100 and all defaults ignored.
Borrowers with CCJs of up to £500 are eligible for the product, a move that was welcomed by Ray Boulger, senior technical manager at John
Charcol. “In general near-prime deals are a good idea. The main benefit of the near-prime market is that it ignores defaults. If someone has got adverse credit of £500 through CCJs many mainstream lenders would consider them for the usual product ranges. However, if the borrower has a default then the near-prime market comes into its own,” he said.
However, Boulger warned: “I would urge anyone interested in near-prime offers to ignore the cheap one-year rates. I would recommend two-year fixed deals as the borrower is less likely to be tied to the deal.”
Keith Street, director of sales at Kensington Mortgages, was certain borrowers would benefit from the latest deal: “By introducing the near-prime max product we are able to offer more choice and flexibility. Importantly, it demonstrates our capability of designing innovative products for the non-conforming market.”
