Introducing Flexi Fixed For Term
The next gen mortgage is here

Flexi Fixed for Term is a mortgage that changes the game. It offers your clients the chance to fix their mortgage from 11 to 40 years with a fixed monthly payment that will never change. 

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Extra peace of mind

Give your client the extra peace of mind that comes from knowing they won’t have to worry about fluctuating interest rates or remortgaging, ever again. They’ll know how much they need to set aside each month from the day they start paying the mortgage until the day they pay it off. 

A boost in borrowing power

This is a mortgage that offers your clients a chance to boost their borrowing power. It’s all down to the way we use the fixed rate to calculate affordability rather than a future variable stressed rate. So if your clients have had to put their home buying dreams on hold, as long as they have an acceptable credit profile, the Flexi Fixed for Term mortgage could offer them a way to finally turn those dreams into reality. 

How it works

All your client needs to do is decide how long they want to fix their mortgage term for, from 11 years all the way up to 40, with any term in between. For example, it could be 11, 16 or 26 years. Then, depending on their LTV, the mortgage rate will be fixed at a set amount which we use to calculate the fixed monthly payment - and that doesn’t change for the lifetime of the mortgage.


Extra benefits, Extra flexibility 

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Affordability based on the fixed term rate, not on a future variable stressed rate

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Portability and Further Advances after 12 months

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Up to 95% purchase and 85% remo

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Eligible Gifted Deposits accepted

flex-fix-overpayments

Your clients can overpay by 10% from Day 1

flex-fix-ERC

Flexible ERCs and none to pay for life events or property sale


Who it's for

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Clients who want to boost their borrowing power

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Clients who want the stability of a single monthly mortgage payment that never changes

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Clients who don’t want to worry about future interest rate rises

 

Example illustrations

Here’s how your clients could boost their borrowing power. We’ve compared the affordability of our Flexi Fixed for Term (FFFT) mortgage vs a traditional stressed product. 

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Examples based on existing clients/circumstances, indicating potential affordability boosts from utilising the FFFT product range, when compared to market average rates used for traditional stress calculations (rates used for affordability shown below). However, please visit the online calculator for bespoke balance calculations for your client.  Average regional house prices from ONS, July 2019. 

Rates used for analysis (as at October 2021):
Market average 2 year reversion rates at 4.32% (+3% stress)
Market average 5 year reversion rates at 4.23% (+1% stress)
Indicative FFFT rates:

LTV        Rate
60%       3.15%
75%       3.29%
85%       3.34%
90%       3.49%
95%       3.71%

 

Finding Flexi Fixed for Term on Sourcing Systems

As a new and innovative proposition in an otherwise structured mortgage product market, Flexi Fixed for Term may be hard to locate on sourcing systems. We have given you some top tips and a handy video on the filter selection to help you find them and advise your client:

 

Trigold

Requirements
Initial Term = Term
Rate Preference = Fixed

Twenty7Tec

Filters
Product Type = Fixed
Product Period = Term

Mortgage Brain

Product Filters
Initial Rate Type = Fixed
Attributes = Lifetime

 

Our Top 5 FAQs

As with anything new, you’re bound to have a lot of questions so we’ve done our best to answer everything we think you’ll need to know. Here’s our top 5 Flexi Fixed for Term FAQs.

You’ll find the details of our credit criteria in the table below:

Secured Arrears Secured Loan Arrears acceptable if older than 36 months.
Unsecured Arrears Unsecured Credit Arrears acceptable if accounts now up to date (max status of 0 in last 24 months).
Unsecured Defaults Defaults acceptable if older than 36 months.
Communications/Utility Defaults All communications defaults ignored.
Small utility defaults ignored.
CCJ's Satisfied CCJ's acceptable if older than 72 months.
IVA/ Bankruptcy/Repossessions None/not acceptable.
DMP (Debt Management Plans) None/not acceptable.
Short Term (Pay Day) Loans Not acceptable within last 24 months. Neither new loan nor outstanding.


If your client just wants to port the mortgage to a new property, there will be no ERC to pay as, if porting is agreed, the mortgage will remain in place. If a porting application is not accepted, the customer will be able to redeem the mortgage without paying an ERC when the mortgaged property is sold and a new property purchased with an alternative mortgage. Porting is available 12 months after completion of the mortgage.

A 0.75% gross procuration fee will be paid upon completion of a Flexi Fixed for Term mortgage. If applicable, please contact your mortgage club/network for your net amount: a total of any fees will be shown on the ESIS. Procuration fees are also paid on porting the mortgage (0.50% gross) and Further Advances (0.30% gross). Porting and Further Advances are an available feature of the Flexi Fixed for Term mortgage 12 months after completion.

Please see below guidance on how to source Flexi Fixed for Term on Trigold, Twenty7Tec and Mortgage Brain: 

Trigold Twenty7Tec Mortgage Brain
Requirements
Initial Term = Term
Rate Preference = Fixed    
Filters
Product type = Fixed
Product Period = Term    
Product Filters
Initial rate type = Fixed
Attributes = Lifetime

If your clients have an acceptable credit profile and meet all other lending criteria, they could be eligible for a borrowing boost which could be up to 30% over traditional affordability models. To find out how much your client could borrow click the link to our affordability calculator.

 

Read our full FAQs 

You'll find our full Flexi Fixed for Term FAQs here or you can contact you local BDM to discuss further.           

 

 

Flexi Fixed for Term Criteria Webinar

Craig McKinlay and Eloise Hall presented the key criteria and product specifics on this recent webinar, as well as answered some top FAQs. Watch it here.

 

 

 Don't just take our word for it 

Here's what brokers say about Kensington.

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Kensington and Kensington Mortgages are trading names of Kensington Mortgage Company Limited (registered in England & Wales No. 03049877), which has its registered office address at: Ascot House, Maidenhead Office Park, Maidenhead SL6 3QQ.

Kensington Mortgage Company Limited is authorised and regulated by the Financial Conduct Authority (Firm Reference No. 310336). Some investment mortgage contracts are not regulated by the Financial Conduct Authority.