Mortgage for heroes: Recognition for committed key workers

Kensington Mortgages has unveiled its Hero Mortgage which aims to recognise the earnings potential and job stability of the UK’s essential public sector workers.

Instead of the standard criteria used by mortgage lenders to decide whether an applicant is suitable for a home loan, this particular mortgage applies less strict rules.

While the industry standard allows borrowers to take out a loan worth four-and-a-half times the applicant’s income, Kensington’s Hero Mortgage uses a calculation which allows borrowing on up to five times the applicant’s earnings.

What’s more, it will also accept applicants who spend a slightly higher proportion of their salary on their debts each month than other lenders.

Job security and earnings potential

Kensington said the professionals it was targeting with its new mortgage had steady earning potential and job security, which was something ‘seldom acknowledged’ by high street lenders.

It has also taken into account the fact qualifying within these professions required a large investment of both time and resources, which were likely to increase the commitment of the individual to their chosen profession.

Mark Arnold, chief executive officer of Kensington Mortgages said: “We continue to demonstrate our passion for helping people own their homes. The heroes amongst us don’t do their jobs for the financial reward, the recognition or the glory, but because they care for other people more than themselves.”

He explained how the team at Kensington had used specialist technology to study and analyse career trajectories and financial behaviour of people in these professions. It enabled them to identify new ways to help these customers by creating a tailored lending criteria.

“Launching this innovative product highlights our commitment to helping the heroes in our everyday lives buy their own home,” he added.

The product is available as a two and five-year fixed-rate mortgage. Rates start from 2.74% on a two-year fixed rate for those with a 25% deposit.

Borrowers must be aged 40 or under the time of applying and a minimum 10% deposit is required to apply.