The proposition includes a flexible mortgage with the option of subscribing to a new insurance product that is specifically tailored to meet the needs of the self-employed.
Key features of the new Flexible Mortgage include:
- Borrowers can conveniently pay off their mortgage early (only £50 extra each month means they can clear the mortgage 20 months early and save over £25,000 in interest*)
- Overpayments – borrowers can make regular or lump sum overpayments
- Borrow back – borrowers can borrow back any overpaid funds at any time
- Payment holidays/Underpay – borrowers can choose to take payment holidays or underpay, up to the total amount of money they have previously overpaid
- Fixed rates – from 4.5 per cent p.a.*
- Self-cert available at application – day one self-employed or contract workers allowed
The new insurance option can be tailored to meet the needs of the self-employed and includes the following key features:
- Accident, sickness and unemployment insurance if no business or work orders for 60 consecutive days
- All back disorders covered with evidence from a qualified consultant provided the customer is not suffering from pre-existing conditions at the start date of the policy
- Cover for pre-existing conditions if clear for at least two years
- Optional business equipment and stock cover available on contents insurance
- Combined buildings and contents discount
- Twelve months interest free direct debit payment option on home insurance
- Easy application process online at kmc.co.uk
Alison Hutchinson, managing director, said: “The self-employed market is a very important area for us, particularly as 34 per cent of Kensington’s customers are self-employed. Our new proposition is perfect for people with variable income and additionally there is the option of taking out our new tailored and competitively priced insurance product. Undoubtedly, the self-employed are the lifeblood of the UK economy but there are actually very few mortgages that have been created with the self-employed in mind. This seems nonsensical, considering that in a recent Datamonitor research study, two-thirds of intermediaries said that at least 25 per cent of their clients were self-employed with the figure rising to 50 per cent for a quarter of the advisers surveyed.
She added: "It is vital that Kensington continue to provide innovative products such as the new flexible mortgage and insurance offer showing we have an inherent understanding of our customer needs – not forgetting our desire to develop and improve.”
*Based on a repayment mortgage of £200,000 over 25 years on our three-year fixed rate product with an interest rate of 6.89 per cent, reverting to a variable rate which is currently 7.55 per cent.
