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Kensington launches specialist public sector mortgage with higher LTI and DTI limits

  • 11/06/2019
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Kensington launches specialist public sector mortgage with higher LTI and DTI limits
Kensington Mortgages is launching a specialist product for public sector employees that includes higher loan to income (LTI) and debt to income (DTI) limits.


It is tailored for those working in the UK’s essential public sector services including police officers, firefighters, NHS staff such as paramedics, nurses and clinicians, the armed forces and teachers.

Subject to the usual affordability checks, the Hero Mortgage is available with up to five times loan-to-income (LTI) multiple, and 55 per cent debt-to-income (DTI) ratio, a higher than the industry standard of 4.5 times and 50 per cent respectively.

The product is available in two- and five-year fixed versions with deals starting at 75 per cent loan to value (LTV) up to 90 per cent LTV.

Rates start at 2.74 per cent on a two-year fix at 75 per cent LTV and applicants must also be aged 40 and under at the time of application.

Kensington said people working in these sectors have steady earning potential and job security which was seldom acknowledged by high street lenders.

“In addition, qualifying within these professions requires a large investment of both time and resources, which is likely to increase the commitment of the individual to their chosen profession,” it added.


Analytics studying career trajectories

Kensington Mortgages chief executive officer Mark Arnold noted that using the lender’s data and analytics tool it had been able to study these people’s career trajectories and financial behaviour to better understand their earnings level, job security and payment histories.

“By doing so, we have identified a new way of helping them by creating specialised lending criteria,” he said.

“Launching this innovative product highlights our commitment to helping the heroes in our everyday lives buy their own home.”

Sesame and PMS director of mortgages Jane Benjamin said: “It’s great to see Kensington launching such an exciting and innovative product to the market.

“For the broker community this product not only represents a promising new business opportunity, opening up the tantalising prospect of helping tens of thousands of our nation’s heroes to become homeowners, but it also shows how Kensington is targeting new cohorts with tailored products.”


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