Kensington has launched a new range of mortgage products aimed at the growing number of contract workers in England and Wales.
According to analysis of data from the Office for National Statistics, since 2005, the number of temporary and contract workers in the UK has increased by around 230,000.
The new products will be available to applicants of any profession, who have been contracting for a minimum of 12 months, and income is calculated on their confirmed weekly rate x46.
Rates are available from 3.44% for a two-year fixed rate up to 75% LTV, with 80% LTV two-year fixed rates from 3.99% and 85% 2-year fixed rates from 4.74%.
The completion fee on all mortgages is £999 and there are free valuations and free legals available on remortgages, with free valuations for home purchases.
Alex Hammond, head of marketing communications at Kensington, said: “There are nearly a quarter of a million more contract workers in the UK today than there were in 2005. Yet many of these could struggle to secure a mortgage as their income does not fit a standard model.
“However, at Kensington we have the underwriting expertise to make sensible lending decisions for people who work on a contract basis and will be charging Contractors the same rate of interest as permanent staff. This new range of products signifies our continued commitment to specialist lending and to offering our intermediary partners the very best lending experience.”
Simon Collins, product technical manager at John Charcol, added: “It’s always refreshing to see a lender who having recognised a need in the market, takes a positive stance, rather than shying away. The loan to values and rates look very competitive, plus it’s great to see that there’s no restrictions on the profession.
“Add in the fact that it’s a manual underwrite rather than credit score reliant, and that’s the icing on the cake.”
