Precise Mortgages, the residential and buy-to-let intermediary lender, announced this morning it is launching a short-term finance arm as soon as next week.
Packagers already signed up to the panel said the Precise short-term product range delivered “knock-out rates” and also had features that would push other bridgers to rethink how they delivered their products.
One packager, who did not wish to be named, said: “This is probably the biggest leap for the bridging market since Drawbridge [now Dragonfly] entered the market 18 months ago. And it’s arguably one of the biggest developments in the whole history of the short-term market. Their rates are the lowest on the market – they’re earth shattering rates.”
Precise would not confirm product details but said plans were to offer non-regulated short-term products over one month to 18 month terms to developers and landlords.
Early indications suggest there will be room for developers buying property at below market rate to borrow a higher than usual loan to value, perhaps up to 90%.
Alan Cleary, managing director of Precise Mortgages, said: “We have done extensive research into this market and believe that we can be a credible provider of lending products to the intermediary sector. We have the funding and expertise to make a significant impact.”
Danny Churchill of Commercial 1 added: “Their entrance into short-term lending shows how rapidly the market has evolved over the last few years. This is good news for mortgage intermediaries and for our customers.”
The lender also said that it had secured additional funding from its backer to lend in this market and said it would confirm its launch date next week.