Kensington Mortgages has unveiled a proposition including a flexible mortgage with the option of subscribing to an insurance product that is specifically tailored to meet the needs of the self-employed.
Key features of the flexible mortgage include borrowers conveniently paying off their mortgage early. Only 50 extra each month means they can clear the mortgage 20 months early and save over 25,000 in interest.
Borrowers can make regular or lump sum overpayments and can borrow back any overpaid funds at any time. They can choose to take payment holidays or underpay up to the total amount of money they have previously overpaid.
The insurance option can be tailored to meet the needs of the self-employed and includes accident, sickness and unemployment insurance if no business or work orders for 60 consecutive days.
All back disorders covered with evidence from a qualified consultant provided the customer is not suffering from pre-existing conditions at the start date of the policy.
It also includes cover for pre-existing conditions if clear for at least two years and optional business equipment and stock cover available on contents insurance.It will offer combined buildings and contents discount and twelve months interest free direct debit payment option on home insurance.
Alison Hutchinson, managing director of Kensington, says: The self-employed market is an important area for us, particularly as 34% of Kensingtons customers are self-employed. Our proposition is perfect for people with variable income and additionally there is the option of taking out our tailored and competitively priced insurance product.
Undoubtedly the self-employed are the lifeblood of the UK economy but there are actually few mortgages that have been created with the self-employed in mind. This seems nonsensical, considering that in a recent Datamonitor research study two thirds of intermediaries say that at least 25% of their clients were self-employed with the figure rising to 50% for a quarter of the advisers surveyed.
Hutchinson adds: It is vital that Kensington continue to provide innovative products such as the new Flexible Mortgage and insurance offer showing we have an inherent understanding of our customer needs not forgetting our desire to develop and improve.