Kensington Mortgages has launched an income recovery product for self-employed borrowers impacted by the pandemic, as well as a shared ownership range.
The income recovery product will help self-employed borrowers who saw a dip in their 2020/21 income (up to 25%) due to COVID-19, either directly or indirectly.
Affordability is based on the average of the borrower’s last two years of income, with a minimum of three years’ trading history required.
Rates start at 3.38% on a 5-year fix at 75% loan-to-value (LTV) and loans are available up to £1.5m.
Kensington’s shared ownership range aims to help first-time buyers who may be unable to afford a mortgage outright but still want to own a part of their home.
Rates start from 4.14% on a 2-year fix at 75% LTV and 4.54% for a 5-year fix and is available up to 95% LTV of a customer’s share, with no product fees and free valuations.
Loans are offered up to £500,000 and the products are available on both new build and existing properties, Kensington will also consider gifted family deposits.
Craig McKinlay, new business director, Kensington Mortgages, said: “Over the last year, many self-employed borrowers have found themselves demoralised from applying for a mortgage, either through past rejections or bearing the financial brunt of pandemic.
“However, we’re not closing our doors on the self-employed. We’re keeping them wide open.
“Kensington will lend a hand to some of those hit hardest by the pandemic through the income recovery range.
“The shared ownership range will also help those who want their own space to own it.
“At a time when many have struggled, both products will help make homeownership a reality for those who may otherwise felt it was out of reach after the pandemic.”