Kensington Slashes Rates on Resi 12 and Resi 6 Mortgages: What Landlords Need to Know

What Has Changed?

Kensington, a key lender in the UK buy-to-let mortgage market, has reduced interest rates by more than 1% on its Resi 12 and Resi 6 mortgage product ranges. These products cater specifically to borrowers with complex credit histories — including those with prior arrears, defaults, or missed payments — making them a valuable option for landlords who might have struggled to secure competitive financing previously.

The new rates apply to both purchase and remortgage transactions up to 85% loan-to-value (LTV). Importantly, Kensington is offering a variety of flexible features alongside these rate reductions, such as no-fee options, free property valuations, and cashback incentives, which can further reduce upfront costs.

Why This Matters to Landlords

For landlords, especially those with non-standard credit profiles or those who have faced credit challenges in the past, these changes could significantly improve financing affordability and accessibility. Given that buy-to-let mortgage costs directly impact rental yields and investment returns, a 1% rate cut can translate into substantial monthly savings.

Moreover, the Resi 12 and Resi 6 products have defined criteria around credit arrears, defaults, and missed payments. This means landlords with previous credit blemishes might now find a tailored mortgage product that suits their circumstances without excessive penalties or higher rates.

Implications Across Landlord Profiles

• Single-Unit Landlords: Even those with a single rental property and a complex credit history can benefit by refinancing at lower rates, improving cash flow.

• HMO Landlords: Those managing Houses in Multiple Occupation may find these products useful if their credit history has been affected by previous financial strains, helping sustain or expand their portfolios.

• Portfolio Landlords: Larger landlords can review individual properties or portfolios to see if switching to Kensington’s new offerings can reduce overall borrowing costs.

• Accidental Landlords: Those who inherited or kept a property but have less-than-perfect credit might find new opportunities to regularise financing more affordably.

Practical Next Steps

1. Review Credit Profiles: Landlords and letting agents should assess their credit histories against the Resi 12 and Resi 6 criteria. While Kensington provides guidelines on acceptable arrears and defaults, these can be complex — a mortgage broker can help clarify eligibility.

2. Compare Mortgage Deals: Even with reduced rates, landlords should benchmark Kensington’s offers against other lenders, considering fees, incentives, and product features.

3. Engage Mortgage Brokers: Professional brokers can provide up-to-date product details and assist with applications, ensuring landlords meet eligibility and compliance requirements.

4. Evaluate Portfolio Financing Strategy: For portfolio landlords, a detailed review of existing mortgage arrangements can identify opportunities to switch to these more competitive products.

5. Update Tenant Referencing Practices: Since these products consider credit histories closely, landlords should align tenant referencing and rent payment monitoring to support mortgage eligibility.

Confirm Details and Stay Compliant

Mortgage product terms can change rapidly. Landlords and agents should confirm all details directly with Kensington or through official mortgage broker channels before making decisions. Ensuring compliance with lender criteria and understanding obligations under buy-to-let regulations remains crucial.

How Rentals & Sales Can Support You

Our expert team specialises in portfolio reviews, compliance audits, and mortgage strategy advice tailored to landlords with diverse credit backgrounds. We can help you:

• Assess your mortgage options under Kensington’s updated Resi 12 and Resi 6 products
• Navigate eligibility requirements and application processes
• Optimise rental pricing and tenant referencing to complement financing

Contact us for a personalised consultation to make the most of these new opportunities.

Disclaimer: This article is for informational purposes and does not constitute financial advice. Landlords should consult qualified mortgage advisers or brokers before making any borrowing decisions.