Alan Cleary: This is why Precise Mortgages became a bank

Ryan Bembridge

June 27, 2016

alan cleary 2016

Precise Mortgages will weather the storm facing the UK markets with the help of its banking parent Charter Court Financial Services, the lender’s managing director Alan Cleary said today.

In a note to intermediaries, packagers and master brokers, Cleary reassured that it will be “business as usual” for Precise despite the turbulence hitting the financial markets after the Brexit vote, while he even hinted at the launch of new 5 and 10-year products later in the week due to a reduction in swap rates.

Charter Court Financial Services launched a savings bank in January 2015.

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Cleary said: “Having lived through the financial downturn in 2008 it was clear that lenders wholly reliant on the capital markets do not fare well when we enter periods of uncertainty; that is the overriding reason we became a bank.

“To ensure we built a strong liquidity position in the case of a Brexit causing uncertainty in the financial markets, Charter Savings Bank has been in the top of the best buy tables for months.  As a result we are in a very strong position over and above the statement made by Mark Carney on Friday that they have an additional £250bn of liquidity available to banks through normal BoE operations.

“It is business as usual at Precise Mortgages and don’t be surprised if we launch some new products this week taking advantage of the reduction in swaps, especially in 5 and 10 year products.

“One of the things I have learnt is that when you enter choppy waters you should steer your course and not follow the waves.  Our strategy is unchanged and we will continue to supply mortgage products into the intermediary market and to support our distribution partners wherever we can.”