Kensington Mortgages partners with Proportunity to offer combo loan

Specialist lender, Kensington Mortgages, has partnered with Proportunity to offer a combination loan product, which will help borrowers with lower deposits access the property ladder.

Proportunity, which is an equity loan provider launched in 2016, will offer up to £150,000 or 25% of the property value. Kensington will then offer a first mortgage at a loan below value (LTV).

This combination 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 are the initial Proportunity rate combined with a rate from the primary lender, range from 2.09% to 2.64%. Pricing varies depending on the LTV, which varies between 10% and 25%, and whether the £499 or £999 product fee option is selected.

The proportionality works in the same way as the Government’s Buyer’s Aid scheme, which is due to be discontinued next year, but is available on existing properties and those already on the property ladder rather than on properties. new builds and first-time buyers.

Paul Lewis, intermediary partnerships manager at Proportunitysaid: “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 further sets it apart as a lender that will reach out to creditworthy borrowers with real, practical solutions.”

Craig McKinlay (illustrated), 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 comes to an end next year.

“There is a real need to help people who only have a small deposit and do not have the luxury of having a parent or grandparent to help them get on the housing ladder or relocate, this partnership with Proportunity means we can do it.”

He said Proportunity’s equity loan worked well with its specialist range of mortgages and helped borrowers expand their current property or buy their first property. He added that since the loan is available on existing properties and for current borrowers, more people could access it.

Priscilla C. Carnegie