KensingtonPrecise MortgagesThe Mortgage Lender
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Property Value (min)£75,000£50,000, except London £150,000

Precise can now consider 30 SQM studio flats
£70,000
£150,000 in London and South East
Advance (min)£25,001
Loans from £500k to £2m are considered on the large loan products

£1,000,000 maximum loan for FTB up to 85% on Option 1 Range.

£1,000,000 up to 85% LTV on Option 2 Range.
£25,001£25,001
Advance (max)£2,000,000 to 75% (£500,000 above 75% LTV)
£500,000 up to 85% LTV
£500,000 up to 90% LTV
£2,000,000 up to 80% LTV
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FTBs: - £1,000,000 up to 80% LTV
£500,000 above 80% LTV

Select Premier large loan products - £1,000,000 across all LTV's

Subsequent Purchase / Remortgage: £2,000,000 up to 80% LTV
£500,000 above 80% LTV
for Select Premier large loan products £2,000,000 up to 80% LTV &
£1,000,000 up to 90% LTV for all borrowers.
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High rise apartments – above 4 stories there needs to be a lift and above 10 stories the loan is limited to 80% LTV and must be in a city location. We can also consider were there is a commercial set up on the ground floor.
£450,000 up to 75% LTV£450,00 England & London

£150,000 Scotland

£225,000 Wales
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.

If applicant(s) are earning £100,000 (joint or single) - Kensington can consider up to 6 x their income. Car allowance can also be added back into affordability.
This only applies to £100,000 or more income and if using a packager. Affordability can be conducted online.

WCTC/CTC not accepted.

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

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.
Employed Primary income can be made from basic salary + 50% Commission/bonus/ OT (key 100% into DIP).

Monthly take average of last 3 months payslips.

Quarterly or Annual - avg of last 2 years P.60 shift allowance - refer or key into the bonus section.
100% Car Allowance
100% Large town allowance,
Additional income (ie once £15k achieved) can also accept:
100% Working/ Child tax credits to max age 14yrs 11months. If joint application but show both applicants on award letter
50% CSA or Court order Maintenance
(Do NOT key child benefit)
100% Pension income including state
50% Secondary jobs (max 60 hrs between all jobs)
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Contractors. Umbrella companies or where the customer is paying their own tax and/or national ins will be treated as self employed.

If Fixed term then will treat as employed and can be clients first contract as long as 12 months continuous min 6 months in same type of job. If less than 6 months to run then letter of intent to extend is required.

Zero contracts are NOT acceptable.

Self Employed
Can consider up to ONE years figures regardless of how long trading up to 85% + lenders fee.

Over 75% is subject to score so key one year, it will refer (check back in 2 hrs) if decline, then reduce to 75% LTV or copy DIP and add 2 years figures (then can consider up to 5 x income).

Precise will work off the average or last year whichever is the HIGHER.
Proof of Self employment:
HMRC Tax Calc + Overview OR SA302 + Overview
OR Accounts
For Directors add together for total income 100% of: Salary + Dividends + Co. Car allowance + pension Contribution = Total that you key into the DIP Changes in trading style ie Sole to LTD Co treated as continuous self employment

NOTE: underwriters reserve the right to ask for further information where necessary.
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£15,000 for applicant 1. No min income for applicant 2

Earned income and only 25% of income can be benefits.

100% basic / pension / Car allowance / 100% - O/T / bonus / commission / allowance - if the last 3 months payslips do not support the value given in full then further payslips or P60 will be requested.

Consider child benefit for children up the age of 13 - 100%

Maintenance (maintenance needs to be via a court order and needs to be evidenced that they will be receiving it for the next 5 years).

75% of Working Tax Credit / Child Tax credit / Universal credit equivalent) for children under the age of 13. MUST BE MAX OF 25% OF EARNED INCOME

Where the benefit amount is higher than 25% of the total income, the benefit income will be capped at 25% of total income and affordability will then be calculated using 75% of this capped income total.

Accept 50% of investment income

Ltd Company Director / Shareholder - can either use net profit before corporation tax plus salary OR Salary & dividend

Where an applicant has defaults, TML will not include the payment amount in the affordability calculation, except where the applicant is currently paying.
Age (min)21 years21 years21 years
Family cash Gift depositYesDeposit template now available. Where a proportion (max 50% originates from outside the area and is from a non conflict area, Precise may consider on a case by case basis 5% (minimum client deposit)

10% Scotland

Yes, with letter confirming the amount and it is a gift not a loan
Family Gift of Equity depositNo (No to Inter-family sales)No - Where the client is purchasing at a sale of undervalue, can consider as long as they are contributing a minimum of 15% in addition to the discounted purchase price. This additional deposit cannot come from the vendor. They will require a gifted deposit letter to show this in all instances. 5% (minimum client deposit)

10% Scotland

Gifted equity from parents, grandparents, siblings, aunts and uncles accepted (including step and adopted relationships)*
• Max 75% LTV not avail on RL7.
Age (max. end of term)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.
70 years or 75 upon referral at DIP stage.

The retirement age must be keyed as 75 and a note uploaded at DIP stage into the case confirming that the employers will confirm the clients ability to work to age 75. Second applicant max age 85 however to qualify the second applicant must be keyed as 'not working'
80 years (at the end of the term) as long as the applicant’s retirement income supports the lending requested.
Once the applicant reaches 70 - they consider this as lending into retirement, proof of pension income will be required to evidence affordability.
Term (min)5 years5 years5 years
Term (max)40 years35 years35 years
CreditCore Range: All non-defaulted agreements must be up to date at the time of application. Status 2 on any individual agreements in the last 12 months, must now be up to date.

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All communications issues ignored.
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Options 1 (CCJ) Range: - Max status 2 in 12 last
months (must be up to date)
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Option 2 Range: - No max status (if current/ existing arrears are present all payments must have been made 6 months prior to application.)
All criteria 0 in 3 months excludes unsecured commitmentsRL1 to RL6 only, not available on RL7.
First Time Buyer DefinitionPrecise define a First time buyer as someone who has not owned a property for the last 18 months.True, FTB, never owned a property before.
New BuildNew Build houses accepted. New Build flats max 90% LTV75% LTV - New build houses and flats (including 5% builder incentive) + lender fees
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Flats in blocks up to 20 storeys, with a commercial ground floor accepted

85% LTV available plus up to a 5% builders incentive on residential lending

S106 obligations considered

Mortgage offers valid for six months from the date of issue, if required we may extend for a further three months.
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Payments on the Equity loan, must be keyed into the unsecured loan section of the DIP. The loan amount should be x by 1.75%, divided by 12 and that is the monthly payment that should be entered and is the figure Precise use for their affordability calculation. The Equity loan from the government is interest free for the first 5 year after which payments become due.

Forces HTB can also apply in conjunction with a HTB, in these instances no deposit is required by the client however both loans MUST be keyed into the unsecured loan section of the DIP.
Up to 5% builder deposit acceptable.

Contract of sale required
5% builder incentive acceptable.

Contract of sale required. This includes any deposit element.

Offers valid for 6 months, subject to valuation/ re-inspection.
Ex-Local AuthorityHouses - Yes up to 80%

Flats - Yes, to a maximum of 80% LTV (up to 4 floor including deck access - must value at or above £200k and be in a City location).
Houses - up to maximum product LTV.

No Flats/Maisonettes. Exceptions can be considered where the following apply; Block must have majority in private ownership, no balcony access in the block, good curb appeal and of standard construction.
New Build only.
DMPNeeds to have been running for minimum 12 months & well conducted.

Needs to be included as a commitment on the affordability calculator based on DMP current payment. They can go up to 90% LTV also, no exceptions to length of time in the DMP.
For DMPs satisfied over 36 months ago standard lending policy will apply: -

Satisfied DMPs do not need to have been active
for 12 months.

For active DMPs the following rules apply:

- DMP must have been active for a minimum of 12 months.

- If the DMP is active at application stage, 12 months proof of payments must be provided by the DMP provider or evidenced
on bank statements.

- Debt Arrangement Schemes (DAS) are acceptable and will be treated in the same way as a DMP (Scotland only).


DMP submission requirements
For active DMP cases, the below is required:

Reference from the DMP provider confirming:

- Date of agreement

- Amount outstanding

- Details of all creditors including lender, account number, payment, balance

- Confirmation that the last 12 months’ payments have been paid on time when due.

- If a full reference is not available, conduct can be validated by 12 months’ bank statements and confirmation from the DMP
provider of the date of the agreement, amount outstanding and a list of debt included.
Acceptable subject to product criteria on RL4-RL6
Help To Buy
(Shared Equity)
Help to buy: - Yes considered -
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.
Only available on New Build Properties - A Government funded equity loan of up to 20% of the purchase price is acceptable.

Applicant will need to provide a minimum 5% deposit from their own resources.

Payments will be required on the Shared Equity loan after five years in addition to the repayments on the loan the customer takes with Precise.

For further information on the Help to Buy shared equity loan scheme, applicant(s) should go to https://www.gov.uk/affordable-home-ownership-schemes/help-to-buy-equity-loans for more information.

Before submitting an application on this product you should ensure your customer is aware of the implications of taking a shared equity loan as part of the financing of the purchase of their home.

Payments will be required on the Shared Equity loan after five years in addition to the repayments on the loan the customer takes with Precise.

Your customer should consider how they will repay this loan and understand that if house prices go up the amount they have to
repay as part of the Shared Equity loan will go up.

Capital raising (for the purpose of stair-casing)

The maximum LTV for a remortgage (£ for £ and capital raising) has increased to 85%
Available on RL1 – RL6, not available on RL7. Further information can be found on the Help to Buy Scheme websites:
https://www.gov.uk/affordable-home-ownership-schemes/help-to-buy-equity-loan
https://www.helptobuylondon.co.uk/
https://www.mygov.scot/help-to-buy/
Missed mortgage paymentsCore Range: Must have paid the last 24 payments.

Options 1 (CCJ) Range: 0 in 24 months.

Options 2 Range: - 0 in 3, up to 1 in last 24 months.
Precise work on Worse status for example:
000010101011 = 1 missed payment.
0 in 3, 1 in 12, 3 in 36 = arrears considered
Check if Help to buy is available, if so: -

None in last 6 months. Worst status subject to product allowed.
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Worse status for example:
000010101011 = 1 missed payment.
Ex-BankruptsNot accepted6 years from the date of discharge and off the credit fileYes.

0 in 6 yrs for RL5 & 6 - and a clean credit profile since.

Not acceptable on RL1-4
IVA'sNot accepted. Over 6 years from date of registration and off the register completely Yes.

0 in 6 yrs for RL5 & 6 - and a clean credit profile since.

Not acceptable on RL1-4
RepossessionsConsider if monies outstanding & in a payment plan for the shortfall. Must be referred at DIP stage.

Otherwise: -

Must have been over 3 years ago for them to consider and with no debt remaining, cannot have been with Kensington.
6 years from the date of repossession and all settledNone on RL1-4

0 in 6 yrs on RL5-6
Historic CCJ’s & DefaultsCore Product Range: CCJs and Defaults Registered over 24 months ago can be ignored
- CCJ's have to be satisfied (no minimum time) – unsatisfied CCJ’s outside scheme criteria can be generally ignored but is at underwriters discretion.
- Defaults do not have to be satisfied, all issues relating to Communications are ignored.
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Unsecured Credit arrears acceptable if accounts now up to date (max status of 2 in last 12 months)

Residential Options 1 (CCJ Range) : CCJ 1 in 24 months (maximum £250)
0 Defaults in 24 months
Unsecured Credit arrears - acceptable if accounts now up to date: Max status 2 in 12 last
months (must be up to date)

Residential Options 2: CCJ's 0 in 6 (registered), 1 in
last 24 months (max £1000)
Defaults: 0 in 6, 1 in last 24 months, satisfied or unsatisfied. Max £1,500
Unsecured Credit arrears - acceptable if accounts now up to date: No max status (if current/ existing arrears are present all payments must have been made 6 months prior
to application.)
Tier 2
Defaults 0 in 24 months

CCJs 0 in 24 months

Missed mortgage/secured loan arrears 0 in 12 months, 1 in 36 months (worst status)

Unsecured arrears Not counted but may affect customer’s credit score

Debt Management Plans (DMPs) Allowed if satisfied over 36 months ago



Tier 4
Defaults 2 in 24 months, (max £1,500 in 12 months, unlimited thereafter)

CCJs 1 in 24 months (max £1,000 in 12 months, or £2,500 in 24 months)

Missed mortgage/secured loan arrears 1 in 12 months, 3 in 36 months (worst status)

Unsecured arrears Not counted but may affect customer’s credit score

Debt Management Plans (DMPs) Active and recently satisfied accepted. See criteria overleaf for details


Tier 6

Defaults 5 in 24 months

CCJs 3 in 24 months

Missed mortgage/secured loan arrears 1 in 12 months, 3 in 36 months (worst status)

Unsecured arrears Not counted but may affect customer’s credit score

Debt Management Plans (DMPs) Active and recently satisfied accepted.

Applicants must not have any defaults, CCJs or secured arrears in the three months before application
RL1 0 in 48 months

RL2 0 in 36 months

RL3-4 0 in 24 months

RL5 1 in 24 months

RL6 3 in 24 months (0 in 6) with a max of 2 of any type

(0 in 6) with a max of 3 of any type.

Where an applicant has defaults, TML will not include the payment amount in the affordability calculation, except where the applicant is currently paying.
Payday LoansNo payday loans in last 12 months, must be settled prior to applicationCan consider, even in last 12 months. Must not show in the last 3 months bank statements and if in last 6 months and a purchase, would want to see healthy bank statements ie no living in overdraft and saving new mortgage paymentNone in 12 months
Applicants (max.)222
CountriesEngland, Scotland and Wales onlyEngland, Scotland and Wales onlyWill lend in Mainland England, Scotland and Wales
Permanent rights to reside and remainYesYes.
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Applicant 2 does not need permanent rights to reside as long as spouse is applicant 2 and has resided in the UK for 36 months, then permanent rights to reside would not be required for applicant 2.
Yes
Repayment typesRepayment, 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%
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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%.
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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%.
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The method and full details of repaying the capital must be declared on a Supplementary Form for Interest Only and be acceptable to Kensington.
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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.
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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.
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With cash ISAs no growth rate is assumed and current balances must be sufficient to cover the Interest Only element of the loan.
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Where there is an element of Interest Only, the maximum age at end of the mortgage term is 70.
Capital and interest

Interest only - 65% LTV. (£150,000 equity required)

Part & Part up to 75% LTV (Interest only element must not exceed 50% LTV)
Available on Tier 1 and 2 only - NOT ALLOWED ON Help to buy or Right to buy.

Repayment vehicles allowed:-

Sale of Security

Sale of additional property

Savings / Investments

Pension
Capital & Interest
Lenders completion feecan be added but on 90% product must be within the 90%.Can be added.Can be added to loan above maximum LTV
Credit ScoresNoYes - On Experian only. No
Type of credit search and who withSoft at DIP - Equifax, but hard on full mortgage application.Soft, Experian at DIP stage. On full mortgage application, hard foot print on ExperianSoft, Equifax. On full application stage, this is a hard foot print and also on Equifax.
AffordabilityAffordability basedAffordability based - maximum of 5x income, case dependent. Yes. Electronically obtained data. Data is regionalised.

Where an applicant has defaults, TML will not include the payment amount in the affordability calculation, except where the applicant is currently paying.
EmploymentUp 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.
Can consider less than 3 months if same line of work and no probationary period. Max 4 weeks between jobs in last 12 months.

Second jobs can be used (50% income taken but key 100% into DIP). Max hours between all jobs 60 hours and must have 12 months continuous employment in second job as well.

Contractors.
Umbrella companies or where the customer is paying their own tax and/or national ins will be treated as self employed.

If Fixed term then will treat as employed and can be clients first contract as long as 12 months continuous min 6 months in same type of job. If less than 6 mths to run then letter of intent to extend is required.

Zero contracts are NOT acceptable
6 months in current role. Need 12 months employment history.

Contractor highlights:

Current contract must be for at least 6 months
Available on RL1-6
Income calculated as £weekly rate x 48 weeks (maximum)
Existing contractors considered
Must have been contracting for a minimum of 12 months
Maximum 90% LTV

New contractors considered:
Must have been contracting for a minimum of 3 months
Previous experience in a similar role for a minimum period of 12 months
Maximum 75% LTV
A copy of the current contract will be required.
Self Employed1 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.
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For self employed applicants Kensington generally use the most recent year’s income for affordability purposes and require a minimum trading period of one year.
Income is based on:
Sole Traders and Partnerships
Share of Net Profit.
Ltd Company Directors (With 25% shareholding or more)
For Directors of a limited company, the salaried income plus dividends received will be used, although profit after tax may be considered where the applicant(s) have a 100% share in the business.
Contractors
46 weeks at current contracts daily rate
Can consider up to ONE years figures regardless of how long trading up to 85% + lenders fee.

Over 75% is subject to score so key one year, it will refer (check back in 2 hrs) if decline, then reduce to 75% LTV or copy DIP and add 2 years figures (then can consider up to 5 x income).

Precise will work off the average or last year whichever is the HIGHER.
Proof of Self employment:

HMRC Tax Calc + Overview
OR SA302 + Overview
OR Accounts
For Directors add together for total income 100% of:

Salary + Dividends + Co. Car allowance + pension Contribution = Total that you key into the DIP

Changes in trading style ie Sole to LTD Co treated as continuous self employment

NOTE: underwriters reserve the right to ask for further information where necessary
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Precise can also use the following in order to help affordability if they are declared on the accounts: -
Rooms used as an office
Use of spouse's income
Share of dividends
Director's car allowance and pension
12 months trading up to max HTB LTV.

Will work on last years accounts (not average).

Require last years Accounts OR Latest SA302 OR Accountants Reference

Sole Trader - Profit

Partnership - Share of Profit (distributed and retained)

Limited Company - Share of Profit (distributed and retained) [If more than one director/shareholder]

Will take either the share of profit before tax plus salary or salary plus dividends

3 months personal bank statements and last months business bank statement will be required on all self-employed cased

We will consider any salary paid in addition to any profit

Contract workers considered if 6 months of continuous service completed and 6 months of contract to run (not necessarily with same employer).
Valuation feesPaid direct to lender at the lender fee scales.Paid direct to lender at the lender fee scalesValuation fees paid direct to lender and a processing fee of £95 at application to 3mc
AccessAccess to Kensington is direct to lender with 3mc selected as your Mortgage Club. Access to Precise Mortgages is direct to lender with 3mc selected as your payment routeAccess to TML is available via selected packagers only.