There are plenty of films where part of the plot involves a bolt from the blue suddenly making everything ok.
If you are a self-employed worker whose work and income has been affected by the pandemic, that kind of Hollywood twist of fate might not seem particularly relevant to you. Plans you may have had, such as buying your first home for example, might have taken a hit. If this is the case, you are entitled to feel a little miffed.
That will quickly change however if you end up actually finding that dream mortgage deal after a period of significant difficulty.
With the launch of a new mortgage product aimed specifically at self-employed workers who have struggled of late, that Hollywood ending might not be as far-fetched as you may think.
What new mortgage product is this?
Kensington Mortgages has launched a mortgage product aimed directly at self-employed workers who have been hit financially by the pandemic.
Named the Income Recovery mortgage, the new product is tailor-made for workers who have seen a significant drop in income since the start of the pandemic – even by as much as 25%.
Rather than focus on the last 12 months, the mortgage criteria and an applicant’s feasibility for this mortgage will be based on their previous two years of income prior to the pandemic.
This will see many workers who were in a good financial place pre-pandemic potentially able to take advantage of what’s on offer from Kensington Mortgages.
Is this right for me?
It could be! If you match the criteria above and are still looking for that perfect mortgage, then the Income Recovery mortgage from Kensington could be the perfect fit.
There are plenty of alternatives however, so we recommend getting some mortgage advice and speaking to a specialist contractor mortgage broker or broker specialising more generally in self-employed mortgages to work out the best option for you.
A sign of things to come?
This product launch from Kensington Mortgages comes at a time when many self-employed workers may have been feeling a little down in the mouth about their prospects of finding a home.
We have reported recently on how some contractors have lost hope of becoming a homeowner while they work in this way, while others are struggling to demonstrate affordability.
This launch is certainly welcome, and it’s not beyond the realms of possibility that other lenders will follow suit and offer similar options for self-employed workers.
After all, the self-employed market is a significant one. Anything lenders can do to stimulate interest and provide beneficial mortgage deals for both themselves and the applicant should be considered.
We hope a flurry of similar options for self-employed workers is in the offing!
