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Kensington Mortgages: Lending Criteria, Bank Statements, and Income Verification

Are you considering a mortgage with Kensington Mortgages? Understanding the lending criteria, bank statement requirements, and income verification process is crucial for a smooth application process. In this article, we will delve into these essential aspects to comprehensively understand what to expect. From age limitations to the types of bank statements needed and the income streams accepted, we’ve got you covered.

Kensington Mortgages Lending Criteria

At Kensington Mortgages, the minimum age requirement for applicants is 18 years at the time of application. However, the maximum age at the mortgage term’s end is 75 years. Applicants looking to extend the term beyond age 70 to 75 years can do so with repayment mortgages. Young professionals applying for the Young Professional range should ensure they are not older than 40 at the time of application. Additionally, customers lending beyond their state retirement age are subject to plausibility checks.

Income Criteria

Kensington Mortgages accepts various income streams, including employed income and self-employed income. A minimum of one year’s trading history is acceptable for self-employed applicants. The income verification process involves submitting the latest SA302 or tax calculation, along with a qualified accountant’s reference or the latest accounts.

For contractors, income is calculated based on the weekly rate confirmed in the contract multiplied by 48. One month of bank statements, evidencing at least one salary credit is required.

Employed income, classified as basic salary, is also accepted. Kensington Mortgages generally considers up to 50% of various income streams, such as bursary income, fostering income (for the second applicant only), vested shares, and trust income. Some income streams, with a strong credit profile, can be considered up to 100%. Documentation required includes the three most recent months’ payslips and a P60.

Non-gifted and Gifted Deposits

a. Non-Gifted Deposits: If the client is providing funds for their deposit, evidence of the source is required. The funds must have been held in a UK bank or building society account for at least three months. Additional information may be requested for large or recent deposits.

b. Gifted Deposits: Immediate family members, including parents, step-parents, and grandparents, can gift a deposit. Evidence of the funds being held for at least three months in a UK bank or Building Society account is required. The donor completes a Donor Gift Deposit Declaration form along with a supporting ID.

Bank Statements:

Kensington Mortgages has outlined when and why bank statements are required to streamline the application process. If the applicants are self-employed or contractors, three months of business bank statements are needed to evidence recent income or business credits. These statements should support the latest SA302 or accountant’s documents provided.

 For Kensington contractor mortgage applicants the most recent one-month bank statement is sufficient to evidence the most recent contractor credit. The latest month’s bank statement is necessary to verify these credits if the applicant receives child maintenance payments.

In purchase applications, proof of deposit funds held in a current or savings account is required. These bank statements must show a build-up of the funds over time. Any large or lump sum deposits may be queried, and if the funds are gifted, they must meet the requirements of Kensington Mortgages’ Gifted Deposit policy.

 Kensington Mortgages for Self-employed

Income Verification:

Self-employed mortgage applicants need to provide income verification. A minimum of one year’s trading history is acceptable. The most recent year’s net profit figure is considered when assessing affordability. Applicants who are company directors with a minimum 50% shareholding can submit a share of net profit after tax figures instead of dividends plus salaried income. Kensington Mortgages accepts various documents to verify self-employed income, including SA302, qualified accountant’s reference, or a combination of accounts and tax assessments.

Income must be verified by a qualified accountant or bookkeeper registered with an acceptable professional body. Kensington Mortgages recognizes several professional bodies, including the Institute of Chartered Accountants in England and Wales, the Association of Chartered Certified Accountants, and the Institute of Financial Accountants.

Contractor mortgage applicants require a minimum of 12 months of contracting experience with contract renewals or entering a second contract. Income is calculated based on the weekly rate confirmed in the contract multiplied by 48. One month of bank statements evidencing at least one salary credit is necessary for income verification.

Accepted Income Streams:

Kensington Mortgages accepts various income streams. The basic salary is classified as employed income and is widely accepted. Up to 50% of bursary income, fostering income (for the second applicant), vested shares, and trust income can be considered. For applicants with a strong credit profile, up to 100% of wages or salary, agency worker income, and armed forces independence pay can be included.

Now that we’ve explored the lending criteria, bank statement requirements, and income verification process for Kensington Mortgages, you can confidently pursue a mortgage application with a clear understanding of the necessary steps. Remember to provide the requested bank statements, ensure proper income verification according to Kensington Mortgages’ guidelines, and leverage the accepted income streams for a successful mortgage journey. Contact MortgageTek for Kensington Mortgages and take the first step towards your dream home today.