Kensington Mortgages will consider applications from day rate contractors and are probably the lender to go to if you have a less than good credit score.
Whether you are a contractor operating through your limited company or through a payroll umbrella, Kensington Mortgages will take a view and consider your application.
Kensington policy towards day rate contractors is as follows:
- Kensington Contractor Mortgages do not have a minimum income specification
- Great lender for impaired credit
- Will consider applications from most professions.
- Kensington require you to have been contracting for at least 12 months
- Kensington will generally ignore communication defaults
- Defaults & CCJ’s older than 24 months ignored, DMP’s older than 24 months considered. Case by case decisioning.
- Will want some sort of time remaining on the contract, generally 4 weeks.
- Kensington will calculate your gross contract value in the following way:
Kensington tend to take your day rate then multiply by 5 days then multiply this by 46 weeks to reach the gross contract value.
They will not utilise the average of the previous year to reach an average day rate.
For example, if on a day rate or hourly rate
£350 per day x 5 days x 46 weeks = £80,730 gross contract value
£42 per hour x (number of hours stipulated or 37.5 hours default) x 46 weeks = £72,450 gross contract value
In order to package your application, we will require: having everything up front makes our job easier and ensures that we can present your application to the Kensington contractor mortgages underwriter in a presentable fashion so that they can swiftly make a decision that will be positive.
- Proof of ID such as Passport or DVLA Licence
- 2 Proofs of Address such as Utility Bill and Council Tax Bill
- Current Contract with the Terms and Conditions, needs to be signed and dated
- Previous contract to evidence 12 month contracting history.
- Up to date CV to enable us to demonstrate that you have an excellent track work record
- 3 months of personal and business bank statements
- If purchasing, then we will require proof of deposit or a gifted deposit letter and requirements if this is being gifted, we will provide you with the template for the letter required.