Kent Reliance contractor mortgage lending criteria
Kent Reliance broadened and updated its lending criteria to cover all manner of contracting types in 2022. The lender now ‘handcrafts’ its mortgage underwriting, giving underwriters leeway when they need to use common sense.
This recent overhaul brought most of Kent Reliance’s criteria up to par with terms and policies the larger lenders use.
Support for contractors with adverse credit
Kent Reliance specialises in helping clients with less-than-perfect credit histories, including:
- Low or poor credit scores
- Late or missed payments
- Defaults
- Arrears
- CCJs
What sets Kent Reliance apart is their personalised approach. Every application is assessed manually by experienced underwriters, making them an exceptionally flexible and contractor-friendly lender. Instead of relying solely on automated credit scoring or strict algorithms, they take the time to understand your individual circumstances.
Their underwriters are meticulous and leave no stone unturned when assessing affordability. If Kent Reliance approves your mortgage, you can be confident it’s because they’ve looked at the full picture – not just the numbers.
Limited company contractor lending criteria
Kent Reliance imposes no restriction on income for limited company contractors, other than that they must receive payment in GBP. And contractors from any niche or industry can apply.
Every contractor must have at least 12 months’ contracting history within their chosen sector. Plus, their employer/agency must have renewed their contract at least once.
The contract itself must have at least three months left to run at time of application. And the contractor must be able to explain any gaps between contracts that look beyond the norm.
Umbrella contractor lending criteria
Kent Reliance’s underwriters take a hands-on approach to contractors who work through a UK umbrella company. Underwriters will first establish that umbrella applicants have a “secure and sustainable income stream”. To determine that, they’ll look at:
- The nature of the contract/employment
- How long the contractor has been employed on this basis (track record)
- When the current fixed-term contract is due to end
- How much the contract is worth (income)
- How all these come together to make a quality mortgage application
As with limited company contractors, umbrella employees must account for any gaps between contracts.
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Kent Reliance affordability assessment
Kent Reliance will restrict lending to 85% LTV for contractors with only one year’s contracting history. That means such contractors will need to find at least a 15% deposit.
Beyond that, Kent Reliance will lend up to 90% LTV, with no lending ceiling across selected mortgages.
To work out your income for affordability, the lender uses:
- Day rate (£) x 5 days (per week) x 46 weeks (per year)
To evidence that income, limited company contractors must provide three months’ personal and business bank statements.
Affordability for umbrella contractors
To work out an umbrella contractor’s income for affordability purposes, underwriters will first deduct:
- The umbrella company’s fees
- Employers National Insurance
- Any holiday pay
Underwriters will not deduct PAYE tax, pension payments and Employee NICs.
To verify income, umbrella employees must provide their last three months’ umbrella payslips and personal bank statements.
Zero-hours contractors/multiple income streams
Kent Reliance assesses zero-hours contractors and people with second/third jobs manually, on merit. The lender’s common sense approach to underwriting will become evident when appraising these applications.
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Construction Industry Scheme subcontractors
Kent Reliance has two approaches to CIS workers:
Taxed at source
If a CIS worker’s employer deducts tax at source, underwriters will treat them as employed. To evidence income, applicants must provide:
- Their last consecutive three months’ payslips/invoices/statements
- Bank statements that correspond with that evidence
CIS subcontractors paying their own tax
If a CIS worker takes their pay in full and deducts their own tax or sub-contract to more than one employer, underwriters will treat them as self-employed.
That means the applicant must have at least 12 months’ work history. Underwriters will then work off the last year’s accounts. They must support these accounts with their most recent three months’ personal and business bank statements.
If the applicant has only the bare 12 months’ history, Kent Reliance will ask for at least a 15% deposit. Applicants will also have to submit a robust business plan to secure mortgage funds.
Talk to the contractor mortgage experts
As the leading mortgage broker for contractors and the flexible labour workforce, you’ll be in safe hands with Freelancer Financials.
Freelancer Financials is an independent broker with access to every mortgage from every lender, meaning we can offer truly unbiased advice and find you the best deal for your unique circumstances.
Established more than 20 years ago, we have a proven track record of arranging over 30,000 mortgages for contractors, umbrella company workers, CIS subcontractors and the self-employed.
Our specialist broking team will support you throughout your mortgage journey, and we have nearly 1000 5-star reviews from clients to prove it. Whatever your mortgage needs, it’s time to talk to the experts.
Kent Reliance in a nutshell
Freelancer Financials has developed close working relationships with Kent Reliance’s senior underwriters.
We’ve streamlined the contractor mortgage application process and can get an agreement in principle within 24 hours.
Underwriters understand the contracting lifestyle, and can be flexible when they need to be.
Their manual approach means that your application will get a fair hearing.
To begin your enquiry, talk to our experienced advisors today.
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Accreditation & recognition
Freelancer Financials is a multiple award-winning brand of Mortgage Quest Ltd.
You can find details of our FCA accreditation here.
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