Kensington Mortgages doubles funding line to £2.6bn

Kensington Mortgages has doubled its secured funding lines to £2.6billion, which it says will support its owner-occupied property lending and buy-to-let business.

The specialist lender has secured funding from Lloyds Bank, BNP Paribas, National Australia Bank and Bank of America, boosting its resources by £1.3bn.

The new cash consists of an £800million increase to its existing Sloane Square warehouse, now valued at £2.1billion, and a new £500million warehouse.

The mortgage lender says its Sloane Square warehouse line is one of the largest mortgage warehouse lines in the UK for new residential mortgage originations.

It adds that the new £500m facility will fund the call of two existing securitisations – Finsbury Square 18-2 and Finsbury Square 19-1.

Last year Kensington’s combined securitizations raised just over £1.8bn.

Kensington Mortgages’ Head of Capital Markets and Digital, Alex Maddox, said: “The renewal and expansion of our warehouse, which will provide funding capacity for new loans and allow Kensington to grow even faster, despite volatile market conditions.

“We have raised just over £16bn of funding through warehouse lines and securitisations since 2015.”

“Our focus is always on helping underserved borrowers. We look below the surface and consider the complex and multiple sources of income and help those who might otherwise struggle to own a home.

“The business is experiencing strong growth accompanied by stable returns and this is reflected in the strong investor appetite for our securitisations.”

The company adds that its assets under management total over £11 billion.

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