Kent Reliance self employed mortgage lending requirement changes

Kent Reliance has announced this week it will be dropping its self-employed mortgage lending requirement to just 1 year, down from a previous 36 months. The lender revealed it will be willing to consider professional self-employed residential applications with just 1 year of trading, joining the likes of Kensington, Lloyds, Mansfield Building Society and Precise Mortgages.

Having seen more clients with a track record in a particular profession, who have only recently set up their own business or moved to a freelance or contract position, many lenders have realised the need for a more flexible offer for such individuals. As these borrowers often still have a wealth of experience in the sector, they are arguably at a better lending proposition than even many employed individuals in their first job, yet have been discriminated against in the market until now.

Offering loans up to a maximum loan to value (LTV) of 85%, applicants will be required to provide 3 months personal and business bank statements, as well as a second-year income projection for those with a previous record in the sector (using PAYE records as evidence).

By widening criteria to increase flexibility in the self-employed market, Kent Reliance are looking to help with loan-types that are harder to process and reflect the financial success and large proportion of self-employed individuals in the UK workforce.

Saffron Building Society has also recently become one of few to offer specific products for self-employed borrowers, with rates now starting from 3.37% for a 3 year fixed rate up to 75% loan to value (LTV), including the option for 10% overpayments without penalty. Paragon Mortgages has also released new offers for self-employed mortgage rates of up to 75% LTV at 3.7% with a 1.5% fee or 4.9% with no fee, 3 year fixes at 3.99% or 4.49% respectively and a 5 year fixed rate of 4.3%. You can read about these offers in more detail here.

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