Kensington Mortgages Cuts Rates on Resi 6 and Resi 12 Products: What London Landlords Need to Know

Understanding the Resi 6 and Resi 12 Products

Kensington Mortgages has recently cut interest rates on its Resi 6 and Resi 12 mortgage products, tailored for borrowers with complex credit histories. Resi 12 products, offering fixed terms up to 12 years, have seen rate reductions up to 1.08%, while Resi 6 (six-year fixed) rates dropped by as much as 1.03%. Fixed rates now start from 5.31% for two-year fixes. Both products allow borrowing up to 85% loan-to-value (LTV), with fees set at £999 or no-fee options including incentives such as free valuations, free legal fees on remortgages, or cashback.

Why This Matters to London Landlords

Landlords with complex credit situations—such as previous arrears, defaults, or irregular income—often face challenges securing competitive mortgages. Kensington’s Resi 6 and Resi 12 now widen access by underwriters considering the full credit profile beyond just credit scores.

In London’s competitive rental market, these improved terms can reduce financing costs significantly, helping to improve cash flow and potentially enabling portfolio growth or refinancing.

Practical Implications by Landlord Profile

• Single-Unit Landlords: Benefit from competitive rates and reduced fees, especially if remortgage options were previously limited due to credit issues. No-fee options with legal and valuation incentives lower upfront expenses.

• HMO Landlords: The broader acceptance criteria can ease refinancing or acquiring additional units despite the complexity of multiple income sources.

• Portfolio Landlords: With the ability to borrow up to 85% LTV at competitive fixed rates, portfolio landlords can restructure existing debt or expand borrowing capacity efficiently.

• Accidental Landlords: Those who inherit or unexpectedly acquire buy-to-let properties with imperfect credit profiles may find these products provide practical financing improvements.

Compliance and Operational Considerations

• Review eligibility criteria: Ensure your team understands Kensington’s updated credit acceptability rules, including assessment of arrears, defaults, and secured payment history.

• Staff training: Update advisory teams on underwriting changes that look beyond credit scores to full borrower circumstances.

• Update advisory materials: Reflect new fee structures and incentives, clearly highlighting no-fee options.

• Client communication: Proactively inform landlords with complex credit profiles about these improved mortgage options.

Recommended Next Steps

1. Audit current mortgages to identify any Kensington Resi 6 or Resi 12 borrowers and assess potential refinancing benefits.
2. Benchmark local mortgage rates for products catering to complex credit profiles.
3. Schedule training sessions for mortgage advisers and letting agents on updated criteria.
4. Update marketing and advisory materials to promote these improved offerings.
5. Engage landlords with complex credit histories to discuss refinancing or borrowing opportunities.

How Rentals & Sales Can Support You

Our specialist landlord intelligence team can review your portfolio to spot refinancing opportunities under Kensington’s updated Resi products, undertake compliance audits of advisory processes, and design staff training programmes. We also provide pricing strategy advice to effectively integrate these mortgage options.

This article is for informational purposes only and does not constitute financial advice. Landlords and agents should consult directly with mortgage providers or qualified advisers before making borrowing decisions.