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New deal for one-year self-employed professionals

Kent Reliance has launched a new mortgage proposition for one-year self-employed professionals.

The specialist mortgage lender for intermediaries bolstered its proposition for hard to place cases, by altering its criteria for self-employed applicants.

It will now consider standard residential mortgage applications from professional, self-employed applicants who have been trading for a minimum of 12 months, down from 36 months.


The new proposition is aimed at doctors, lawyers or accountants or those who hold other professional qualifications.

The Bank of England’s 2015 Q3 quarterly bulletin recorded 700,000 new self-employed professionals since 2008, taking the total to 4.5 million, or nearly 15% of the UK’s workforce.

Yet the vast majority of lenders require a two or three-year track record of self-employed earnings, which limits access to mortgage finance for the newly self-employed. 

Professional, self-employed applicants applying for standard residential mortgages must meet the following criteria:

Income must be based on the finalised accounts prepared by a suitably qualified accountant.

Projection for second-year income must be provided by the accountant.

The applicant must have a minimum 12-month track record in the same sector as their current business, evidenced by proof of previous PAYE income.

They must also provide three months of personal and business bank statements.

Self-assessment returns or SA302 are not accepted as proof of income.

Income will be verified by means of an accountant’s reference.

Adrian Moloney, director of sales at Kent Reliance for Intermediaries, said the financial success of many self-employed individuals isn’t 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.”


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