Kensington Mortgages Partners With Proportunity To Offer Combined Loan
Specialty lender Kensington Mortgages has partnered with Proportunity to offer a bundled loan product, which will help borrowers with lower deposits access the real estate ladder.
Proportunity, which is an equity loan provider launched in 2016, will offer up to £ 150,000 or 25% of the property’s value. Kensington will then offer a first mortgage at a lower loan-to-value (LTV).
This combined loan will allow consumers to borrow up to six times their salary, and according to Proportunity, the deal also has a lower interest rate than a 95% LTV mortgage, so the overall cost of the mortgage is lower.
According to its website, blended rates, which is the initial Proportunity rate combined with a prime lender rate, range from 2.09% to 2.64%. The rates vary depending on the LTV, which ranges between 10% and 25%, and whether the £ 499 or £ 999 product charge option is selected.
Proportunity works in a similar fashion to the government’s purchase assistance program, which is slated to be discontinued next year, but is available on existing properties and those already on the property ladder rather than just new construction and the first buyers.
Paul Lewis, Head of Intermediate Partnerships at Proportunity, said: “This partnership is good for Kensington, good for Proportunity and most importantly, good for the borrower.
“Kensington Mortgages is known as a leader in the specialty lending market, and its forward-looking approach sets it apart even more as a lender that will reach creditworthy borrowers with real and practical solutions.
Craig McKinlay (on the picture), new Commercial Director at Kensington Mortgages, added: “This innovative shared loan from Proportunity fills a much needed gap that will grow in importance as the purchase assistance program ends next year.
“There is a real need to help people who have only a small deposit and do not have the luxury of a parent or grandparent to help them climb the housing ladder. or relocate, this partnership with Proportunity means we can do it. “
He said Proportunity’s equity loan works well with its specialized line of mortgages and helps borrowers expand their current property or buy their first home. He added that with the loan available on existing properties and for current borrowers, more people could access it.