The
mortgage market is in a period of fluctuation, with
variable rate loans usurping
fixed-rate loans as the most competitive deals around. A recent rise in swap
rates has prompted
mortgage lenders to push up the prices of their
fixed-rate products.
Kensington mortgages are aiming for those
borrowers who looking for
variable rate mortgages, and have released a new range of
discounts .
The range of
mortgages includes a two-year discount (4.90 per cent) and a three-year discount (5.74 per cent) and is backed by a full range of fixed-rate products to give customers a wider choice. As standard, each product will come with no overhanging, no early
repayment charges, no higher
lending charges and flexible features.
On
buy to let mortgages,
Kensington offer 90 per cent
Loan to Value, with
loans of up to £1 million and no maximum age limit.
Brokers can mix and match the features of different products to meet each customer’s individual requirement.
The Director of
Marketing at Kensington reportedly said: "If the borrower can accept some increases in the
rate, a discount is a good option right now. With the margin between fixes and discounts of similar periods increasing to around 0.50 per cent in some cases, I'd expect to see more opting for the lower rates offered on variable deals. After all, there would have to be two
Base Rate increases of 0.25 per cent before the discount would be the same rate as the fixed and your borrower will have enjoyed the benefit of the cheaper rate in the meantime."
