Kensington launches range of long term mortgages including 40-year fix

by Aaron Strutt

Nov 22 2021

Kensington Mortgages has launched a range of ‘Flexi Fixed for Term’ rates allowing borrowers to fix the interest rate on their mortgage for anywhere between 11 to 40 years. 

The product will be wholly funded by Rothesay Life Plc (‘Rothesay’), the UK’s largest specialist pensions insurer and there will be no early repayment charges apply if the client sells or moves home, or overpays up to 10% per annum. 

For borrowers with a 40% deposit, rates start from 2.83% for a 15-year term, 2.85% for 25-year and 2.90% for 30-year. For those with a 5% deposit, rates start from 3.71% for a 25-year and 3.77% for a 30-year. The 40-year fixed rates start from 3.55% for those with a 25% deposit rising to 4.3% for those with a 5% deposit. 

Borrowers with a 5% deposit will be able to raise up to six times their salary to help them on to the housing ladder. 

Aaron Strutt, product director at Trinity Financial, says: “Most borrowers tend to take five, seven or ten-year fixes when they are looking for payment security, but they now have the option of never remortgaging again. 

“The issue is borrowers will probably pay a large premium for the long term security, especially over the early years. Mortgage rates are still incredibly cheap with the best ones priced at just over 1% if you have a 40% deposit. The cheapest 10% deposit rates are able well below 2% at the moment.” 

These longer-term mortgages are likely to be more appealing to older borrowers looking for very long term payment security, who are either not planning to move home or borrow more cash. Also, first-time buyers with smaller deposits who require an income stretch of up to six times to get on the property ladder.” 

Call Trinity Financial on 020 7016 0790 to secure a competitively priced longer-term fixed rate