Useful information about our mortgages
The EU Mortgage Credit Directive (MCD) is required to be implemented by all EU member states, including the UK, by 21 March 2016.
This will mean small changes to the way we process your mortgage application and the documentation provided.
There are also requirements for us to publish certain general information on our website in order to adhere with the MCD. Much of this information can be found in the relevant section throughout the site, but we have also included it here to make it easy for you to find what you are looking for.
Please note that Kensington mortgages are only available through regulated intermediaries as part of an advised sales process.
Kensington and Kensington Mortgages are trading names of Kensington Mortgage Company Limited, which has its registered office address at: Ascot House, Maidenhead Office Park, Maidenhead SL6 3QQ. Kensington Mortgage Company Limited is authorised and regulated by the Financial Conduct Authority (Firm Reference No. 310336).
Our mortgage loans may be used to buy a residential property for occupation or investment.
We also provide remortgages and allow money released from a remortgage to be used for a variety of reasons including home improvements, debt consolidation, buying a car, paying for a wedding, going on holiday etc. However, please note that money raised from a remortgage may not be used for business purposes.
We require a registered first legal charge over residential immovable property as security for any loan we make to you. Your mortgage adviser will have access to our lending policy, which details the types of property on which we are unable to lend.
Our mortgages are available for a term of between 5 and 40 years depending upon individual circumstances.
All of our mortgages have an initial fixed rate period of between 2 and 5 years. This means you know how much your repayments will be during this time. After the fixed rate period ends the mortgage will revert to a variable rate for the rest of the term of the mortgage.
During the initial fixed rate period the mortgage will usually carry an early repayment charge, which means if you want to repay your mortgage in full or part during the initial fixed rate period you will need to pay a charge for doing so. This charge is usually a percentage of the loan balance you want to repay but will depend on your mortgage product. Details of any early repayment charge or other fees we charge you for repaying your loan early will be set out in your mortgage offer.
At the end of the fixed rate period, all new customers will then move to a variable rate, known as the reversion rate. This is charged at a margin above LIBOR, where LIBOR has a floor of 1.00%. This means that if LIBOR falls below 1.00% the reversion rate will be charged at the reversion margin plus 1.00%.
Full details of the reversion margin will be detailed on any illustration provided.
We do not offer foreign currency loans.
There may be other costs involved in relation to your mortgage that are not included in a standard Annual Percentage Rate of Change (APRC - the total cost of the credit to the consumer, expressed as an annual percentage). You can find more information about these costs in any illustration that has been issued to you. More information is available in our fee tariffs.
All our mortgages require you to make regular monthly payments for the duration of the term. If you have an interest only mortgage your monthly payment may only repay the interest which means you will be required to have a repayment vehicle in place to repay the amount borrowed at the end of the term.
You can choose to repay all or part of your mortgage at any time, although you may need to pay a fee and early repayment charge if you repay your loan early (see your mortgage offer for details).
There are a number of methods by which you can repay your mortgage with Kensington. For more information, please call our customer service team for the options that are available to you.
We require a valuation of the property offered as security for every application. Unless we tell you otherwise, you will have to pay the cost of this valuation.
The valuation report will be used solely for Kensington to consider if the property represents suitable security. It is not a market valuation or structural survey to protect your interests and as such you are advised to commission your own independent survey and valuation. If you are shown a copy of the valuation report, it is provided to you as a courtesy only and you must not rely on anything it says in connection with the property for your own purposes. If we agree to make a loan against the property it does not mean that we or the valuer are making any promises or guarantees about the value of the property, the reasonableness of the price which you are paying for it, its condition or state of repair or its permitted use. The valuer we instruct is an independent contractor and we do not claim that any valuation or report about the property is correct in any respect. We do not accept any responsibility whatsoever for any valuation of the property.
A full list of our valuation fees is available here.
There is no obligation to take any ancillary services or products from Kensington in order to obtain a mortgage with us. However, unless the property is commonhold or held under a lease and another party is obliged to insurance the property, customers must arrange buildings insurance for the property and its fixtures against loss and damage.
Please note that if you do not comply with the terms and conditions of the mortgage then it is not guaranteed that the total amount of credit will be repaid by the end of the term.
For Residential mortgages, your home may be repossessed if you do not keep up repayments on your mortgage.
For Buy to Let mortgages, if you fail to keep up with payments on your mortgage, a ‘receiver of rent’ may be appointed and/or your rental property may be repossessed.