Kensington new loans reach £686m

DIVORCEES, the self-employed and people with poor credit records boosted business for specialist mortgage lender Kensington Group to a record £686m in new loans during 2001.

More than 7,500 became homebuyers, half of them living in London and the South-East, with mortgages designed for those who find it difficult to obtain them elsewhere.

However, arrears and repossessions are below the national average for normal building society mortgages, at less than 1%. Most borrowers were required to make deposits averaging 22% of the home price.

Many people obtaining mortgages from Kensington are making buy-to-let purchases. Chief executive John Maltby said the housing market is still robust and the year had started well.

In the year ended in November pre-tax profits soared by 42% to £27.3m enabling it to pay a maiden dividend of 2p. Floated last November at 225p, its shares have been subject to market speculation of a 275p bid from 4.5% stakeholder Abbey National. Today they added 11p to 266p.