Precise Mortgages launches first range for home owners
The launch follows Precise Mortgages’ recent approval by the Financial Services Authority to provide financing to home owners.
The range is aimed at borrowers who have traditionally been served by the high street but now find funding restricted.
Precise Mortgages is looking for mature borrowers with substantial deposits and robust proven affordability.
The products will only be available on a capital and interest repayment basis and are limited in size and to certain property types.
Precise Mortgages estimates that as many as 500,000 good quality borrowers are currently facing restricted access to mortgage financing due to high street banks’ selective underwriting criteria.
Precise Mortgages is applying underwriting criteria comparable to high street lenders’ standard criteria but is bringing a dedicated new source of funding for such borrowers currently being starved of mortgage choice.
Precise Mortgages is applying a highly responsible lending approach that includes rigorous income and affordability tests:
• Proof of income validated on 100% of cases.
• An affordability stress test to 2% above the reversionary rate helps to ensure borrowers have strong affordability even if rates rise.
• All products are 3-year capped trackers with a cap of 3% above current pay rate.
• Repayment mortgages only, no interest only loans.
• Minimum 20% deposit so borrowers have a substantial equity interest in their home.
• Controlled intermediary, valuation and solicitor panels to help combat fraud.
Precise Mortgages’ range starts with a 3-year capped tracker with an initial pay rate of 4.99% for 70% LTV.
All products carry a Product Fee payable on completion of 1.5% (minimum £2295).
All products have a 3-year cap at 3% above pay rate giving borrowers some protection against rate rises.
Ian Lonergan, CEO of Precise Mortgages, said: “Many borrowers have been excluded from the mortgage market as high street lenders have moved towards ‘super prime’ borrowers; our range of products is designed to help these disenfranchised borrowers.
“Precise Mortgages is completely focused on writing good quality responsible mortgage loans.
“Bringing new funding will make a positive difference to the UK market, and as we prove the quality of our lending we hope to be able to increase the volume of lending.”
Alan Cleary, managing director of Precise Mortgages, said: “Our launch range brings new choice to a market that has been starved of funding in recent years.
“Similar underwriting criteria can be found on the high street and whilst our lending approach is equally responsible and rigorous, our difference is that we have a new dedicated source of funding for borrowers who can prove their income and affordability, but are being squeezed off the high street currently.”
Nigel Stockton, financial services director at Countrywide, the UK’s largest estate agent and property services group, said: “This is good news for the mortgage market; Precise Mortgages is helping people purchase homes that otherwise would be left out in the cold. I am sure Precise Mortgages will become a natural partner to the intermediary market with their focused range and excellent service.”
Precise Mortgages is 100% dedicated to the intermediary market and currently distributes its products through 3mc, Legal & General Mortgage Club, Mortgages for Business, Mortgageforce, Mortgage Intelligence, Mortgage Next, PTFS, PMS and TBMC.