The EU Mortgage Credit Directive (MCD) was implemented by all EU member states, including the UK, on 21 March 2016.
It requires us to publish certain general information on our website in order to adhere with the MCD. Much of this information can be found in the relevant section throughout the site, but we have also included it here to make it easy for you to find what you are looking for.
Please note that New Street mortgages are only available through regulated intermediaries as part of an advised sales process.
Our identity and the geographical address
New Street and New Street Mortgages are trading names of Kensington Mortgage Company Limited, which has its registered office 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).
The purposes for which the credit may be used
Our mortgage loans may be used to buy a residential property for investment.
We also provide remortgages and allow money released from a remortgage to be used for a variety of reasons including home improvements, debt consolidation, buying a car, paying for a wedding, going on holiday etc. However, please note that money raised from a remortgage may not be used for business purposes.
The forms of security
We require a registered first legal charge over residential immovable property as security for any loan we make to you. Your mortgage adviser will have access to our lending policy, which details the types of property on which we are unable to lend.
Possible duration of mortgage contracts
Our mortgages are available for a term of between 5 and 35 years depending upon individual circumstances and product terms.
Types of available borrowing rate
All of our mortgages have an initial fixed rate period of 2 or 3 years. This means you know how much your repayments will be during this time. After the fixed rate period ends the mortgage will revert to a variable rate for the rest of the term of the mortgage.
During the initial fixed rate period the mortgage will usually carry an early repayment charge, which means if you want to repay your mortgage in full or part during the initial fixed rate period you will need to pay a charge for doing so. This charge is usually a percentage of the loan balance you want to repay but will depend on your mortgage product. Details of any early repayment charge or other fees we charge you for repaying your loan early will be set out in your mortgage offer.
At the end of the fixed rate period, all new customers will then move to a variable rate, known as the reversion rate. This is charged at a margin above Lender Base Rate, where the Lender Base Rate is set with reference to our funding and operating costs including 90 Day Libor.
LIBOR is expected to cease to be available for use by mortgage lenders after December 2021. When this occurs we will replace LIBOR with an appropriate alternative external rate. We will tell you which alternative rate we will use at least 1 month before we make the change.
Full details of the reversion rate will be detailed on any illustration provided.
Foreign currency loans
We do not offer foreign currency loans.
Ways to repay your mortgage
All our mortgages require you to make regular monthly payments for the duration of the term. If you have an interest only mortgage your monthly payment may only repay the interest which means you will be required to have a repayment vehicle in place to repay the amount borrowed at the end of the term.
You can choose to repay all or part of your mortgage at any time, although you may need to pay a fee and early repayment charge if you repay your loan early (see your mortgage offer for details).
You will need to set up a direct debit to make your monthly mortgage payment to New Street.
Valuation of a property
We require a valuation of the property offered as security for every application. Unless we tell you otherwise, you will have to pay the cost of this valuation.
The valuation report will be used solely for New Street to consider if the property represents suitable security. It is not a market valuation or structural survey to protect your interests and as such you are advised to commission your own independent survey and valuation. If you are shown a copy of the valuation report, it is provided to you as a courtesy only and you must not rely on anything it says in connection with the property for your own purposes. If we agree to make a loan against the property it does not mean that we or the valuer are making any promises about the value of the property, the reasonableness of the price which you are paying for it, its condition or state of repair or its permitted use. The valuer we instruct is an independent contractor and we do not claim that any valuation or report about the property is correct in any respect. We do not accept any responsibility whatsoever for any valuation of the property.
A full list of our valuation fees is available here
Obligation to take products
There is no obligation to take any ancillary services or products from New Street in order to obtain a mortgage with us. However, unless the property is commonhold or held under a lease and another party is obliged to insure the property, customers must arrange buildings insurance for the property and its fixtures against loss and damage.
Please note that if you do not comply with the terms and conditions of the mortgage then it is not guaranteed that the total amount of credit will be repaid by the end of the term.