KENSINGTON, the lender which pioneered the UK subprime market, has temporarily pulled out of the tarnished sector, blaming the tightening of global credit.
The specialist lender, which has a Scottish chief executive and is owned by Investec, yesterday said it was temporarily withdrawing from subprime until market conditions improve.
It will focus more on mainstream lending by revamping its "prime" product range. Kensington launched in 1995 and has until now been a major player in subprime, but it has been forced to pull back following the US crisis.
It said with no current appetite from investors for subprime portfolios, it is protecting its long-
term commitment to the market by exercising caution in the short term.
Alison Hutchinson, chief executive of Kensington, said: "Tough times call for tough decisions."
