Backed by a dedicated team of underwriters, the new products will bring Kensington’s individual, case-by-case approach to borrowers who are applying for loans above £500,000.
The Premier mortgage range offers loans up to £2 million, including a maximum limit of £1 million for First Time Buyers. Premier customers will also benefit from lower rates than Kensington’s core range. Loans will be available up to a maximum 75% LTV, with rates of 3.44% for a 2-Year Fixed and 3.74% for a 3-Year Fixed mortgage.
Up to 65% LTV, rates are 3.34% for a 2-Year Fixed and 3.64% for a 3-Year Fixed. All products carry a £999 completion fee.
All decisions are made by an underwriter rather than a credit score and every application will receive a call from a named underwriter to discuss the client’s individual circumstances. Underwriters will consider 100% variable incomes as standard, and will assess self-employed borrowers based on the latest years’ figures.
As part of the Kensington approach, applicants can cite a range of income sources, such as company profits for sole directors. Borrowers will also have the opportunity to choose an interest-only repayment option, should there be a plausible strategy in place to repay the outstanding loan.
Steve Griffiths, Head of Sales and Distribution, Kensington Mortgages, said: “As house prices continue to increase, more and more people are looking to take out larger mortgages, particularly when it comes to securing homes in some of the most in demand areas across the UK. However, large loans are rarely straightforward and it often takes the involvement of an individual underwriter when it comes to assessing the complex incomes that are often associated with these types of mortgages.
It has always traditionally been harder for the self-employed or contract workers to obtain mortgages with lenders airing on the side of caution when it comes to complex incomes. We believe that anyone who can afford a mortgage should have the opportunity to do so and should not be penalised for their chosen career.
Lenders need to be more understanding and open to taking on-board clients with difficult situations. It is for this reason that we have launched the Premier mortgage range, bringing Kensington’s 20 years of understanding about real life lending to customers looking to secure larger loans”
