Suitors rebuffed by Kensington

KENSINGTON Group, which offers mortgages to people traditionally shunned by the High Street banks, has received at least three informal 'flirtations' from competitors.

It is thought that two former building societies, possibly Bradford & Bingley and Alliance & Leicester, and a US financial giant have sounded out Kensington. But the mortgage lender is determined to remain independent and has rebuffed their attentions.

One source said: 'Kensington does not need to make a stock exchange announcement - these are only flirtations.'

The firm specialises in lending to customers who are divorced, have County Court judgments or are self- employed. It recently said new mortgage lending had more than doubled to £860m in the first six months, and the company doubled its interim dividend. Shares in Kensington, which was founded in 1995 by former Goldman Sachs' banker Martin Finegold, have surged from a year low of 132 1/2p to close at 315 1/2p on Friday.