Kensington Specialist Contractor Mortgages

Regarding day rate contractors and individuals with less-than-ideal credit scores, Kensington Mortgages stands out as a lender worth considering. Their flexible approach and thorough application review process make them an attractive option for various borrowers.

Flexibility for Contractors

Kensington Mortgages takes a flexible approach, whether you operate as a contractor through your limited company or a payroll umbrella. They carefully review your application to provide tailored solutions for your unique financial needs.

Key Policy Points

Key points about Kensington’s policy for day rate contractors include:

No minimum income requirement.
Suitable for borrowers with impaired credit.
Consideration of applications from most professions.
Minimum of 12 months of contracting experience is required.
A willingness to overlook communication defaults.
Defaults and CCJs older than 24 months are typically ignored, while older debt management plans (DMPs) are considered case-by-case.
A preference for at least four weeks remaining on your contract.

Gross Contract Value Calculation

To calculate your gross contract value, Kensington follows this method:

For day rate contractors, they multiply your day rate by 5 days and then by 46 weeks.

For hourly rate contractors, they multiply your hourly rate (using the specified number of hours or a default of 37.5) by 46 weeks.

For example, if your day rate is £350:

£350 per day x 5 days x 46 weeks = £80,730 gross contract value.

Or if your hourly rate is £42:

£42 per hour x (specified number of hours or 37.5 hours default) x 46 weeks = £72,450 gross contract value.

Required Documentation

To streamline your application process, we kindly request the following documents:

Proof of ID, such as a Passport or DVLA Licence.
Two proofs of address, such as Utility Bills and Council Tax Bills.
Current contract with signed and dated Terms and Conditions.
Previous contract to demonstrate a 12-month contracting history.
An up-to-date CV highlighting your excellent track record.
Personal and business bank statements for the past three months.
If you’re purchasing a property, proof of deposit or a gifted deposit letter. We can provide the template for the letter if needed.

Having all the necessary information upfront facilitates our work and ensures that we present your application to the Kensington contractor Mortgage underwriter in a clear and organized manner, leading to a prompt and positive decision. We are here to support you throughout the entire process.