Kensington has launched a new range that it is calling “Hero Mortgages” for soldiers, police officers, fire fighters, nurses, teachers and other essential public sector staff.
The deals will allow loan-to-income multiples of up to five times earnings rather than the industry standard of 4.5 times salary.
The new range of two and five-year fixed rates is available up to 90 per cent loan-to-value and open to applicants aged 40 or under.
So long as borrowers meet the affordability tests, a debt-to-income ration of 55 per cent is allowed, which Kensington says is an increase on the industry standard of 50 per cent.
Two-year fixed rates start at 2.74 per cent with a 25 per cent deposit.
Kensington says that these categories of worker have steady earning potential and job security which is “seldom acknowledged” by mainstream lenders
The lender adds that in getting qualified to work in these roles requires a large investment of both time and resources, which means these borrowers are likely to be particularly committed to their chosen profession.
Kensington Mortgages chief executive Mark Arnold says: “We continue to demonstrate our passion for helping people own their homes.
“The Heroes amongst us don’t do their jobs for the financial reward, the recognition or the glory, but because they care for other people more than themselves.”
Arnold says that Kensington’s data analytics tool, Vector, enabled the lender to study the career trajectories, earnings, job security and financial behaviour of people working in these roles in order to better understand the risks involved.
He adds: “By doing so, we have identified a new way of helping the UK’s heroes by creating specialised lending criteria.
“Launching this innovative product highlights our commitment to helping the heroes in our everyday lives buy their own home.”
Borrowers who can apply for Kensington’s Hero products through brokers include:
Policer officers, firefighters, NHS (paramedics, registered nurses and clinicians), armed forces (Army, Navy and RAF), teachers and lecturers (primary, secondary, sixth form, college and university), employed within the public sector.