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  • Mortgages & Finance

    85% LTV Buy to Let is Back!

    Thanks for letting us know.  Will be interesting to find out rates and qualification criteria.

    Tim

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    It's true that they did have a shocking reputation beased on customer feedback.

    Check this out...

    https://www.reviewcentre.com/reviews88619.html

     

    Admittedly these are sub prime residential customers and not BTL. However, firstly they shouldnt treat any customers like this and secondly why should a BTLer expect to be treated differently. Interesting how some customers accept the bad service because they see themselves as a bad risk!

    There is a need to exercise care here, because many brokers, who are aware of the bad ongoing service with K's customers (not grouping Lisa in this lot by the way) would perhaps omit to mention this if a client was on the verge of signing up.

    Hopefully the main good that comes from this is that other more reputable lenders follow the lead eventually.

    Geoff Laird said:

    I think that the full facts need explaining before the buy to let Investor gets too excited.

    Here are the full terms of the 85% as shown on the Kensington Web site;-

    At 85% LTV there is a 2-year fixed rate mortgage at 5.99% with a 2.50% fee and at 80% LTV, customers can choose between a 2-year fixed rate at 5.69% with a 2.50% fee or go for a 5.99% rate with a flat fee of £1,499.

    Lisa mentions that Kensington will consider new build flats , what she failed to mention was that the maximum loan to value is 65% , hardly an enterprising initiative.

    It needs to be remembered that we are now entering a rising Interest rate environment and even if the two year fixed Rate was taken , the reversionary rate is linked to libor which for the last 24 months has tracked Bank Base by a margin of 0.3%;if Bank Base does increase to between 3% and 5% during this period the reversionary rate would amount to between 8.3% and 10.3%;how many conventional properties would meet this funding requirement.

     

    As a final pointer please note that next week Kensington will be changing its Libor Rate which juding from the money market rates to day suggest a rate of at least 0.8% if not slightly higher.

     

    Also remember that 


    FSA fines Kensington Mortgages £1.2m | Money | guardian.co.uk
    12 Apr 2010 ... Sub-prime lender Kensington fined for levying 'unfair and/or excessive charges' when borrowers fell into arrears
    Caveat Emptor
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    Hi Tim

     

    Go onto the lenders web site and click on the Intermediary sector, you can see everything you need to get a clear view as to whether this represents the type of lending you wish to obtain.
    Tim Mason said:

    Thanks for letting us know.  Will be interesting to find out rates and qualification criteria.

    Tim

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    Geoff if you care to read my posts I did in fact state new build is to 65%!
    Lisa
    Geoff Laird said:

    I think that the full facts need explaining before the buy to let Investor gets too excited.

    Here are the full terms of the 85% as shown on the Kensington Web site;-

    At 85% LTV there is a 2-year fixed rate mortgage at 5.99% with a 2.50% fee and at 80% LTV, customers can choose between a 2-year fixed rate at 5.69% with a 2.50% fee or go for a 5.99% rate with a flat fee of £1,499.

    Lisa mentions that Kensington will consider new build flats , what she failed to mention was that the maximum loan to value is 65% , hardly an enterprising initiative.

    It needs to be remembered that we are now entering a rising Interest rate environment and even if the two year fixed Rate was taken , the reversionary rate is linked to libor which for the last 24 months has tracked Bank Base by a margin of 0.3%;if Bank Base does increase to between 3% and 5% during this period the reversionary rate would amount to between 8.3% and 10.3%;how many conventional properties would meet this funding requirement.

     

    As a final pointer please note that next week Kensington will be changing its Libor Rate which juding from the money market rates to day suggest a rate of at least 0.8% if not slightly higher.

     

    Also remember that 


    FSA fines Kensington Mortgages £1.2m | Money | guardian.co.uk
    12 Apr 2010 ... Sub-prime lender Kensington fined for levying 'unfair and/or excessive charges' when borrowers fell into arrears
    Caveat Emptor
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    0

    Lisa All comments are for education and information purposes only and do not construe as advice or a financial promotion. No liability is accepted for comments made. If you wish to receive information in an advisory capacity then please contact me about becoming a client. www.keys-mortgages.com

    I dont think this is as such a bad deal as some are making out.

     In my case I could pull an additional 13K out of 1 of my flats and still be cashflow positive. Even at suggested future 10.5% apr there would only be around £100 pm neg cashflow. Thats not bad really for £13K in your hand.

    The good thing is it may shake other lenders up to start offering some better LTVs too 

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    Hi Shaon,

     

    The income requirement is are £40k. so, obviously Kensington is looking for someone who has accummulated some fat to cut.

    Cassio

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    Lisa,

    can you confirm whether or not this offer is available for properties in Scotland? Heard a vicious rumour that Kensington think that life stops at Hadrians wall.

    Robin

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    Hi Robin,

     

    I'm afraid its England & Wales only. Kensignton aren't the only ones though!

     

    KR, Lisa

    Robin Ferrier said:

    Lisa,

    can you confirm whether or not this offer is available for properties in Scotland? Heard a vicious rumour that Kensington think that life stops at Hadrians wall.

    Robin

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    Lisa All comments are for education and information purposes only and do not construe as advice or a financial promotion. No liability is accepted for comments made. If you wish to receive information in an advisory capacity then please contact me about becoming a client. www.keys-mortgages.com

    Applicant one must have income over 25k or 30k for 80%+ products.

     

    Lisa

     

    Cassio Caceres said:

    Hi Shaon,

     

    The income requirement is are £40k. so, obviously Kensington is looking for someone who has accummulated some fat to cut.

    Cassio

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    Lisa All comments are for education and information purposes only and do not construe as advice or a financial promotion. No liability is accepted for comments made. If you wish to receive information in an advisory capacity then please contact me about becoming a client. www.keys-mortgages.com