The Step Down range offers clients an overall saving in comparison to the equivalent five-year fixed rate while the product’s lower rate after the first two years of the term provides them with added security
Kensington Mortgages has unveiled its new ‘Step Down’ five-year fixed rate mortgage, which is designed to introduce more options for clients who have earlier experienced a credit blip.
The new range offers clients a standard fixed rate for the first two years followed by a lower fixed rate for the remaining three years.
Kensington’s Step Down mortgages will be added to its Resi 6 and Resi 12 ranges. Resi 6 Step Down mortgages are available to clients who are looking to move home or remortgage and who have experienced a credit blip more than six months back. Resi 12 Step Down mortgages are available to people who are moving or remortgaging and who have experienced a credit blip over 12 months ago.
The Resi 12 Step Down range is also available to FTBs. County court judgements, defaults, payday loans, debt management plans, and credit arrears can all be considered in Kensington’s flexible criteria.
The Step Down range offers clients an overall saving in comparison to the equivalent five-year fixed rate while the product’s lower rate after the first two years of the term provides them with added security.
Kensington argues that its Step Down offering presents clients with an opportunity to potentially make “considerable” savings. It provides an example of a client borrowing £200,000 at 75% loan to value with a 30-year term to buy a £300,000 home. The lender says they could save £3,587 over five years with Kensington’s Resi 6 Step Down five-year fixed rate.
Additionally, a client buying a £500,000 property with an 80% loan to value £400,000 loan with a 40-year term could save £6,943 over five years with Kensington’s Resi 12 Step Down five-year fixed rate.
Vicki Harris, chief commercial officer at Kensington Mortgages, said: We are excited to be introducing our new Step Down range, which we hope will provide a broader set of options for borrowers who have earlier experienced a credit blip.
Clients have an opportunity to make significant savings in comparison to a standard five-year fixed rate while also benefitting from the additional certainty afforded by access to a reduced rate after the first two years, Harris added.
