Banks and building societies often show the door to contractors without a fixed income looking for a buy to let mortgage, but a new deal from an independent lender could help borrowers who want to invest in property.
The government and unions are arguing ove5r the number of contractors in the country, but it’s thought to be at least 1 million workers – including those on zero hour contracts with no income certainty.
Now, Kensington, an independent mortgage firm, has decided to offer buy to let mortgages to contractors and freelances in any profession, providing they have contracted for at least 12 months.
For experienced landlords – those who are already letting rental property – the mortgages come with no income proof and no maximum loan or number of properties in a portfolio.
The buy to let range also includes loans for first time lands up to a maximum £500,000 and let-to-buy deals for contractors who need to move but cannot sell their home.
Borrowing is up to 80% of the value of the property with a £999 completion fee, a free valuation and free legal fees.
Kensington only lends through brokers and offers several buy to let rates.
Alex Hammond, head of marketing communications at Kensington, said: “There are nearly a quarter of a million more contract workers in the UK today than there were in 2005.
“Yet many of these could struggle to secure a mortgage as their income does not fit a standard model.
“However, at Kensington we have the underwriting expertise to make sensible lending decisions for people who work on a contract basis and will be charging contractors the same rate of interest as permanent staff.
“This new range of products signifies our continued commitment to specialist lending and to offering our intermediary partners the very best lending experience.”
Kensington is also offering home loans to contractors and freelancers, but has an income requirement of 46 x confirmed weekly income.