Kent Reliance Building Society has ignited hopes of a return to competition in the self-employed sector after launching a mortgage for self-employed applicants with just one year’s accounts.
The product is available only through BrightStar Financial and can be taken as interest-only or capital and interest repayment.
The two-year discounted deal is available at 5.99% up to 80% LTV, and at 5.49% up to 75% LTV, both with a fee of 2%.
David Hollingworth, mortgage specialist at London & Country, says most lenders will ask for at least two years’ accounts for self-employed applicants and the few offering one year would want a 25% deposit.
He says: “The criteria looks good and while that has been factored into the price, this product definitely has a place in the market.
“There is a growing band of lenders looking to do something a bit different and cater to markets that are under-served by the high street, of which the self-employed market is one.”
David Sheppard, managing director of Perception Finance, adds: “This is a welcome addition to a market that has been neglected in recent years. It sends out a message that this type of client is not to be shied away from and may cause other specialist lenders to rethink their self-employed offering.”
Rob Jupp, managing director of BrightStar, says: “At a time when entrepreneurs are prevented from buying a home due to strict self-employed criteria, mutuals like Kent Reliance are showing maturity and leadership, and we are delighted to be leading this fantastic project for them.”