The increase consists of an £800m upsizing of its existing Sloane Square warehouse line, and a new £500m warehouse facility, which will fund the call of two existing securitisations — Finsbury Square 18-2 and Finsbury Square 19-1.

This will allow Kensington Mortgages to continue funding its pipeline of new originations for both owner-occupied and BTL mortgages, which currently sits at £900m.

The lender’s funding is split between four banks: Lloyds Bank, BNP Paribas, National Australia Bank and Bank of America.

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Alex Maddox, capital markets and digital director at Kensington Mortgages, said: “We’re delighted with the renewal and extension of our warehouse facility, which will provide funding capacity for new loans and allow Kensington to grow even faster, despite volatile market conditions. 

“We’ve raised just over £16bn of funding through warehouse lines and securitisations since 2015.

“Our aim is always to help underserved borrowers; we look beneath the surface and consider complex and multiple income sources and help those who otherwise may struggle to own a home. 

“The business is seeing strong growth accompanied by stable returns and this is reflected in the strong appetite amongst investors for our securitisations.”

This follows the success of Kensington’s securitisations last year, which raised just over £1.8bn in total.