Kensington Mortgages (for the moment) pull out of the UK-SubPrime market
Posted by markharrison on November 23, 2007
As of this weekend, Kensington Mortgages, who only operate through brokers, are pulling out of the SubPrime market.
They’re also reducing their maximum loan-to-value for Buy2Lets from 90% to 85% (80% for self-certs.)
The SubPrime market is continuing to get worse in the UK, and there are fears of a US-style crash, however there are some differences:
- UK mortgages, subprime or not, are regulated by the FSA. (Though be careful, some types of investor loan are NOT regulated).
- In the US, 25% of mortgages were SubPrime, in the UK only about 8% are.
As ever, if you are needing finance, I’d recommend that you go to an independent financial adviser.