View more on these topics

Kent Reliance loosens its self-employed criteria

Currency-Money-20-pound-note-GBP-700.jpg

Kent Reliance has loosened its criteria for ‘professional’ self-employed borrowers by accepting those who have been trading for just 12 months.

Previously, the lender would only consider borrowers who had been trading for a minimum of 36 months.

Applicants will be subject to the following criteria:

  • Income to be based on the finalised accounts prepared by the accountant acting for the business who must be suitably qualified;
  • Projection for second year income must be provided by the accountant;
  • Applicant must have a minimum 12 months previous track record in the same sector as their current business. This must be evidenced by proof of previous PAYE income;
  • Maximum LTV of 85 per cent;
  • Three months personal and business bank statements must be provided;
  • Self-assessment returns or SA302 are not accepted as proof of income;
  • Income will be verified by means of an accountant’s reference

Examples of professional applicants that could apply for these loans are doctors, lawyers, accountants or those who hold other professional qualifications.

Kent Relaince director of sales Adrian Moloney says: “The self-employed are making up an increasing proportion of the modern workforce. Despite the financial success of many within this group, this hasn’t yet been reflected in the mortgage market. We are looking to change this, supporting self-employed professionals, and their brokers looking to place these cases.

“We’ve had feedback from brokers that they find these type of loans especially hard to process, so we are widening our criteria to increase our flexibility in this market, which will aid both distributors and their clients. These changes support our commitment to be a specialist, personal and flexible lender for those who are not effectively served by mainstream providers.”

Recommended

Nationwide U-turn on self-employed

Nationwide has done a U-turn on its unpopular stance on SA302s and now no longer requires a covering letter from HMRC for self-employed income verification. Lenders have increasingly started to use the self-assessment tax calculation, or SA302 form, to verify income for self-employed borrowers. While paper copies are still available from HMRC, in January, the […]

anders
1

Analysis: Self-employed gain most from IP cover

When I was chatting to a friend about insurance, she told me her husband had just taken out some income protection. He is self-employed and she had to work hard to persuade him, which surprised me as I think self-employed people can benefit most from this type of protection. If something happened that left her […]

Cleary-Alan-700x450.jpg

Precise rethinks criteria for self-employed

Precise Mortgages has overhauled its self-employed criteria and will now lend if the borrower has just one year’s certified accounts or SA302. Previously, the business must have been trading for a minimum of two years and have the latest trading accounts for loans up to 75 per cent LTV and trading for minimum of three […]

1

Thinking Cleary: Self-employed opportunities beckon

According to the latest figures from the Office for National Statistics, self-employment is at its highest point since records began 40 years ago, with 15 per cent of UK workers now self-employed.  This growing group of people is probably the most in need of specialist lenders because so many high-street lenders appear not to be […]

Newsletter

News and expert analysis straight to your inbox

Sign up