Kensington To Provide Bad Credit Loans Again
Since the onset of a general slow down in the UK economy, the sub-prime and bad credit loan and mortgage market has all but disappeared, along with many of the lenders and finance houses which have supplied this type of loan to the market place.
Of those providers who have survived so far, most have totally withdrawn all of their bad credit loan and mortgage products, or at least severely restricted the lending criteria which is applied to applications and increased the interest rates and other associated costs, such as loan application and booking fees.
One such lender is Kensington, who were one of the original home loan companies who specialised in the sub-prime sector. They later expanded their portfolio of products to include mainstream and prime loans and then, as the credit crunch impacted on the sub-prime sector, withdrew all their bad credit loan and mortgage products, along with all the other lenders.
The difference is that, unlike most other lenders who may have been bitten by the sub-prime loan sector, Kensington have announced that they will return to this area of business once the necessary funding returns.
Ian Giles of Kensington said that it was likely to be some considerable time before funding was restored to the sub-prime loan and mortgage sector, but once it did, Kensington would return to this potentially profitable area of business with a new range of products, probably starting with a near prime offering and then expanding from there.
Kensington’s expertise lies in the sub prime sector, as they are one of the first companies to provide any type of loan for someone with a poor credit history. Mr Giles said “ We are well versed in constructing products for people that have had the full range of credit issues in their past, anything from having a couple of county court judgements to having bankruptcy, individual voluntary arrangements and being in arrears.”
It may be a long way away, but this is quite a bold statement from Kensington and it should be interesting to see when these loan products arrive and also how much they cost!
