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Kensington

Mortgage Type

Residential

Property Value (min)

£75,000

Advance (min)

£25,000

Advance (max)

£500,000 up to 95% LTV
£1,000,000 up to 90% LTV
£1,500,000 up to 80% LTV and £1,000,000 for FTB's and CORE Range
Hero range up to 85% LTV - £500,000 and EKO Range

Large Loan Range £500k - £2m up to 85% LTV

High rise apartments – above 4 stories there needs to be a lift and above 10 stories the loan is limited to 70% LTV and must be in a city location. We can also consider where there is a commercial set up on the ground floor.

Term (Max)

40 years

Minimum Age

21

Maximum Age

75 years If the client is over the age of 55 at application, max age is 70 at the end of the term. Where appropriate, Kensington will generally be able to lend for terms up to a customer's State Retirement Age. Where the applicant requests the loan term to expire beyond age 70 to (max) age 75 years, this can be agreed on repayment mortgages only. Affordability will be calculated on the applicant’s current provable income, on the basis that the applicant is expected to continue working for the full term of the mortgage. Maximum age at the application stage for applicants who wish to borrow beyond age 70 must not exceed 60 years of age, unless they are already receiving a monthly private pension income which can fully support the mortgage without reliance on other types of income to meet affordability. Evidence of existing pension provision may be requested where the term of the mortgage takes the applicant close to, or beyond, their State Retirement Age/selected retirement age. Where there is an element of interest only, the maximum age is 70 years.

Family Cash Gift Deposit

Yes

Family Gift of Equity Deposit

No. Also, Interfamily sales are not accceptable.

Income (min)

No minimum income - but will be affordability based from the submitted AIP.

50% of regular/guaranteed overtime/ bonus/ commission, 100% if last 2 P60's and last 3 months payslips show regular amounts - considered.

100% of child benefit considered if individual applicants earn less than £50,000 and the child is up to 13 years old

WCTC/CTC/ not accepted.
Do not accept Disability Living Allowance (DLA) as a source of income.

Maintenance considered if by court order and potentially considered if provable via solicitors letter and 3 months bank statements. Pension income considered, Investment portfolio income considered, salary/basic alone has to reach minimum income before additional income can be considered.

1 Year self-employed accepted.

Maintenance - Acceptable as a second stream of income only. Maintenance must be supported by Court Order/ CSA documentation/solicitor’s letter which must be submitted to Kensington. In addition 3 months bank statements are required to verify receipt of maintenance payments.

Can accept applicants who have been contracting for a minimum of 12 months, with either a renewal of their contract or have entered into a second contract.

May be able to consider an applicant on a first contract, even if it is for less than 12 months, if the applicant has previous PAYE employment in a similar role.

Income will be calculated based on the weekly rate confirmed in the contract x46.

3 months’ bank statements evidencing salary credits. Applicants holding multiple contracts will be considered on a self-employed basis. A CV can help to establish a track record for the applicant.

Kensington can consider up to 5x income on our heroes range for cases where one applicant qualifies as a hero (emergency services, NHS, teachers, army personnel) this applicant who qualifies must be under the age of 40 - the 2nd applicant will also get 5x income regardless of their employment type and age - if available.

Kensington can also consider 6x income on young professionals range, the same as above however for self-employed or employed doctors, dentists, accountants, barristers, commercial pilots, etc. Minimum incomes apply.

Kensington can also consider 6x income regardless of someone’s job role if they have a sole or joint income of £100k. This can be made up of different income streams for example:
Mr A earns £40k basic, and 10k bonus
Mrs A earns £10 salary, and £40k dividends Joint income is 100k therefore we can consider 6x income.

DWP Tenants

No

Ex-Local Authority Properties

Houses - Yes up to max LTV 75%

Pre-fabricated Reinforced Concrete, Poured Concrete, Steel Framed / Steel Clad (pre 2000), 100% Timber Framed (post 1980), Cob Construction, Colt Construction, Concrete Block, Stone and Part Rendered Breeze block with Pebble Dashed
Outer Walls

Minimum years remaining on leasehold property

85 years at the beginning of the mortgage application

Minimum Ownership

6 months minimum ownership before a remortgage can be considered. If there is any element of debt consolidation then 12 months ownership is required.

Permanent rights to reside and remain

Yes

New Builds

New Build Houses & flats up to 75% LTV - £75,000 minimum value.

Credit Score

No

Historic CCJ’s & Defaults

Core Product Range: -
Defaults: 0 in last 24 months.
CCJ’s: 0 in last 24 months.
Secured Loan Arrears: 0 in last 24 months.
Unsecured Arrears: Max status 2 in 12 last months.
£500,000 max loan

Unsecured Credit arrears acceptable if accounts now up to date (max status of 2 in last 12 months)

Select Range: Defaults: 0 in last 36 months.
CCJ’s: 0 in last 36 months.
Unsecured Arrears: Max status 2 in 12 last months
Max Loan £750,000

All Communication arrears are ignored except for when they have reached CCJ.

All Communication arrears are ignored except for when they have reached CCJ.
All payday loans must have been settled for 12 months prior to application

Valuation Fees

Paid direct to lender at the lender fee scales

Maximum number of applicants

2

Countries

Will lend in England, Wales, Scotland (Main Land) and Northern Ireland.

Access

Packaged for the Specialist Distributor Ranges

Missed mortgage payments

Select Range - Secured Loan Arrears: 0 in last 36 months. Core Range: - Secured Loan Arrears: 0 in last 24 months.

Property Type / Commercial

Up to 6 bed HMO / Up to 4 Multi Units on 1 title

Location

Will lend in England and Wales

Shared Ownership

Yes - no to Heylo scheme.

Right to Buy (RTB)

No

Debt Management Plan

Needs to have been running for minimum 12 months & well conducted for last 24 months. Needs to be included as a commitment on the affordability calculator based on DMP current payment. They can go up to 85% LTV also, no exceptions to length of time in the DMP.

Help To Buy (Shared Equity)

Yes: - up to 75% LTV

Kensington can also accept applications as part of the Forces Help to Buy scheme where the application is for a residential purchase to be occupied by the applicant or their immediate family. Forces Help to Buy is available on all residential mortgage products.

Help to Buy remortgage acceptable if property was originally purchased on a shared equity Help to Buy.

Capital raising acceptable for home improvements, transfer of equity and staircase (including partial)

Ex-Bankrupts

Not accepted

IVAs

Not accepted

Repossessions

Must have been over 3 years ago and no shortfall remaining upon application. Refer prior to application.

Payday Loans

All payday loans must have been settled for 12 months prior to application

Repayment Types

Repayment, Interest only or Part and part For Interest only and Part and Part a repayment vehicle is required and Minimum 10 year term Where at least one applicant earns in excess of £75K, Kensington can consider full interest only (when the product permits), to a maximum LTV of 75% Where all or part of the loan is on an Interest Only basis, the maximum LTV for the Interest only element is limited to 50%. Where at least one applicant earns in excess of £75K, Kensington can consider full interest only (when the product permits), to a maximum LTV of 75%. The method and full details of repaying the capital must be declared on a Supplementary Form for Interest Only and be acceptable to Kensington. Evidence of the repayment strategy will be required. Any payments made towards a repayment strategy must be taken into account for affordability purposes and strategies must mature prior to end of mortgage term. Repayment strategies must have been established for a minimum of 12 months prior to application. We will accept up to 80% of current value of share portfolio, 100% of providers most recent midpoint maturity valuation for endowments, 25% of providers most recent midpoint maturity valuation for pensions and 75% of current equity of other owned properties. With cash ISAs no growth rate is assumed and current balances must be sufficient to cover the Interest Only element of the loan. Where there is an element of Interest Only, the maximum age at end of the mortgage term is 70.

Lenders completion fee

Can be added to the loan up to 75% LTV.

Affordability

Affordability based

Employment

Up to 100% regular overtime/bonus considered
Up to 100% second job income considered where the applicant has held both jobs for minimum 6 months.
Pension and investment income allowable.
Must have had 3 months in current job and not inside of a probationary period - 12 months employment history is required

Young Professional range, which offers significantly enhanced Loan to Income for applicants aged up to 40, qualified in the following professions;

• Medical Doctors
• Dentists
• Chartered Accountants
• Solicitors
• Barristers
• Commercial Pilots
• Actuaries

Heroes range, which offers enhanced income multiples for applicants aged up to 40, working in the following professions;

• Armed Forces Personnel
• Firefighters
• NHS Clinicians (Including Nurses & Paramedics)
• Police Officers
• Teachers.

Self Employed

1 years finalised accounts
Most recent years figures generally used
Inland Revenue SA302 acceptable
Also can now make affordability assessments taking into consideration a company director's share of profits in addition to their salary
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For individuals and couples that own 100% of shares in a company we can lend against net profit after tax and add back in salaries – this can also be based on 1 year accounts
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Kensington can used retained profit, they must be 100% shareholders altogether.

Contractors - Can accept applicants who have been contracting for a minimum of 12 months, with either a renewal of their contract or have entered into a second contract.

May be able to consider an applicant on a first contract, even if it is for less than 12 months, if the applicant has previous PAYE employment in a similar role.

Income will be calculated based on the weekly rate confirmed in the contract x46.

Share of Dividends Yes
Share of Directors remuneration Yes
Share of directors car allowances Yes
Share of directors pension contributions Yes but only if it’s included as Directors Remuneration.
Share of use of home as office No
Share of private health insurance No
Share of spouse's income (sole app) No
Operating profit No
Retained net profit We wouldn’t use retained profit from previous years, we would only use the latest Net Profit from the current year (after corporation tax) subject to the applicant being 100% shareholder and the accountant confirming funds have not been set aside for any specific reason (such as a tax bill) and the accounts being supportive.
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