Since increasing its maximum loan to value (LTV) on its core residential range to 85%, as well as launching new, higher LTV products at the start of the year, Kensington will be reviewing its lending policy this week, including changes to its policies on lending to older borrowers, buy to let landlords and self-employed customers’ income verifications.
As well as transitioning to a paperless application process in a bid to make it easier for intermediaries to place cases with lenders, Kensington’s policy shakeup and changes to mortgage lending criteria seeks to create clearer definitions and clarified income requirements, particularly for older borrowers seeking finance.
Still offering lending up to the age of 75 at the end of the term or where a customer is borrowing beyond the age of 70 or their anticipated retirement age, proof of future retirement income is now a requirement. Equally, the maximum age at application for customers wanting to borrow beyond the age of 70 or their expected retirement age, currently stands at 55.
As far as buy to let is concerned, Kensington has revised its requirements for applicants, with a minimum income only required for applicants who do not already own a buy to let property. Applicants must now be an existing residential homeowner for the past 12 months, or have owned at least 4, or more, buy to let properties for longer than 12 months previously.
Not only this, self-employed individuals now have access to greater support with their application, following an expansion of services available, now meaning the lender will consider verification to accept an application, from a greater number of accountants and bookkeeping professionals.
Aiming to make the mortgage process as smooth-running as possible for its clients, Kensington’s latest changes to mortgage lending criteria seek to make its policies and process much less complicated for complex mortgage applications in general.