The distribution members, including mortgage packagers, networks and clubs, will get closer account management, an enhanced service and access to exclusive Kensington deals.
Brokers will have the choice to do business with Kensington through one of the distributors on the panel or go direct to the lender by telephone or online.
Kensington had previously been virtually whole of market, but decided to limit the distributors – in particular, packagers – that did not fit its criteria.
The members of the panel were chosen for their business volumes, technological capability and strategic direction.
While mortgage packagers make up the body of the 80-plus members, many have been cut from the panel, though Kensington maintained there were still opportunities for that to change in future reviews.
Keith Street, director of sales at Kensington, said he believed that the future of the specialist lending market was in key accounts for direct and packaged business.
He said: “It is no secret that Kensington has been reviewing its business strategy in order to develop a fitter, leaner operating model to support all of our business partners.
"At the start of the year we announced the launch of a booking system to enhance the service we provide to our packagers, and these changes reflect the further alignment of our distribution model to that strategy.
"We believe that the future of the specialist mortgage market lies in key accounts for both direct and packaged business.”
Andy Frankish, managing director of Mortgage Talk, said it was only common sense that Kensington would use firms that were cost-effective, and he could see other lenders following their example.
“It makes sense to use the firms that give the lender the volumes. Margins are increasingly tight. Kensington has got to use the firms that are most cost-effective. I can see others following suit, but at least we still have the option to go direct.”
