Moneyfacts listings confirm Kent Reliance joins Family BS, Kensington, Lloyds, Mansfield BS, Precise, Tesco and the Co-op in this market.
Andrew Montlake, partner at London mortgage advice firm Coreco, said: “Another lender joining the ranks of lending to the self-employed with only one year’s accounts, albeit for professionals only, is a welcome addition.
“We are seeing more clients who have a track record in a particular profession who have recently set up their own business or moved to a freelance/contract position and need a more flexible lender.
“These borrowers, who have a raft of experience, are arguably a better lending proposition than many employed in their first job, yet often get discriminated against in the mortgage world.
“I expect to see more lenders adapting to the new working environment and therefore more choice for self-employed.”
The Bank of England’s 2015 Q3 quarterly bulletin recorded 700,000 new self-employed professionals since 2008, taking the total to 4.5m, or nearly 15% of the UK’s workforce.
Kent Reliance will offer mortgages to professionals with qualifications, such as doctors, lawyers and accountants based on finalised accounts from a qualified solicitor. Applicants will also be asked for a second-year income projection for those working in a sector with a previous track record evidenced by PAYE records.
Loans are offered to a maximum loan-to-value (LTV) of 85% and applicants must provide three months’ personal and business bank statements. Self-assessment returns or an SA302 are not accepted as proof of income and all income will be verified with an accountant’s reference.
Adrian Moloney, director of sales, Kent Reliance for Intermediaries, (pictured) said: “The self-employed are making up an increasing proportion of the modern workforce. Despite the financial success of many within this group, this hasn’t yet been reflected in the mortgage market. We are looking to change this, supporting self-employed professionals, and their brokers looking to place these cases.
“We’ve had feedback from brokers that they find these type of loans especially hard to process, so we are widening our criteria to increase our flexibility in this market, which will aid both distributors and their clients. These changes support our commitment to be a specialist, personal and flexible lender for those who are not effectively served by mainstream providers.”
