Some good news at last for first-time buyers – Kensington has launched a range of deals with a more generous LTV.

LTV stands for loan-to-value ratio. In other words, it is the percentage of the cost of a property that a bank is prepared to lend you. For example, if a property costs £200,000 and a lender’s LTV is 75%, then they will lend you no more than £150,000.

Kensington’s new range of deals for first time buyers includes mortgages with high LTVs of up to 85%. Before, they would offer no more than 80%.

For example, the mortgage lender is offering a two-year fixed rate mortgage at 5.69% with the maximum 85% LTV. The fee for this loan is £699.

Kensington claims to make lending decisions based on each individual customer, not just their credit score, because first-time buyers may not have an extensive credit history from handling loans in the past.

It is good to see a lender remembering those at the first rung of the ladder. And the increased loan to value shows growing confidence in the market and an increased desire to lend – a move in the right direction.

Kensington is an intermediary only lender. Talk to us at Limetree if you would like to know more about their products.

Posted in First Time Buyers, Mortgages