Precise mortgages make changes to products (Source: SevenCapital)
Specialist mortgage lender Precise Mortgages, part of the Charter Court Financial Services Group, has announced that they are pulling their current buy-to-let and residential product ranges and will replace them with new updated products. It seems that the lender known for it’s ‘common sense’ approach to lending and it’s very open minded stance on criteria that other high street banks won’t accept has joined the same bandwagon as other lenders and will most likely be increasing their rates.
Changes To Precise Mortgages Residential Products
As well as being known for being particularly generous with self-employed mortgage applicants, Precise are also quite lenient with less than perfect credit history. Something that pretty much all other high street mortgage lenders are not ok with. To categorise these borrowers, Precise has ‘Tiers’, prime tier 1 is someone with no credit issues and the higher the tier, the more severe the credit issues are. Here is a breakdown of the newly released residential mortgage products available for prime tier borrowers:
PRIME TIER 1
75% LTV (25% deposit):
- 2-year fixed rate at 6.89% available with a £995 fee – Reversion rate after fixed period is BOEBR + 3.50%
- 5-year fixed rate at 6.29% with a £995 fee – Reversion rate after fixed period is BOEBR + 3.50%
85% LTV (15% deposit):
- 2-year fixed rate at 7.49% available with a £995 fee – Reversion rate after fixed period is BOEBR + 4.00%
- 5-year fixed rate at 6.89% available with a £995 fee – Reversion rate after fixed period is BOEBR + 4.00%
PRIME TIER 2
75% LTV (25% deposit):
- 2-year fixed rate at 7.09% available with a £995 fee – Reversion rate after fixed period is BOEBR + 3.50%
- 5-year fixed rate at 6.49% with a £995 fee – Reversion rate after fixed period is BOEBR + 3.50%
85% LTV (15% deposit):
- 2-year fixed rate at 7.69% available with a £995 fee – Reversion rate after fixed period is BOEBR + 4.00%
- 5-year fixed rate at 7.09% available with a £995 fee – Reversion rate after fixed period is BOEBR + 4.00%
Changes To Precise Mortgages Buy-To-Let Products
Although not necessarily known for their buy-to-let product offerings, Precise have also made changes to their buy to let rates. Unlike residential mortgages, Precise only have one tier for buy to let applications, meaning that anyone looking to get a btl mortgage through them will need to meet the adverse credit criteria which is:
- Defaults: 0 in 72 months
- CCJs: 0 in 72 months
- Missed mortgage/secured payments: 0 in 36 months
- Unsecured arrears: 1 in 12 months, 2 in 36 months
(worst status)
The following criteria is also a must for any potential landlord looking to get a buy to let mortgage with Precise:
- No minimum income requirements on loans up to and including £1,000,000. For loans over £1,000,000 a minimum income of £100,000 is required.
- The main applicant must be employed/self-employed.
- Minimum loan size is £60,000
- Maximum loan size is £3,000,000 at 60% LTV
- Maximum loan size is £1,000,000 at 70% LTV
- Maximum loan size is £750,000 at 75% LTV
- Maximum loan size is £500,000 at 80% LTV
- Minimum term is 5 years
- Maximum term is 35 years
Precise Mortgages Buy-To-Let Rates
75% LTV (25% deposit):
- 2-year fixed rate at 6.69% available with a 2.50% product fee – Reversion rate after fixed period is BOEBR + 3.25% – Assessment rate is 8.69%
- 5-year fixed rate at 6.39% with a 2.50% product fee – Reversion rate after fixed period is BOEBR + 3.75% – Assessment rate is 6.39%
85% LTV (15% deposit):
- 2-year fixed rate at 6.99% available with a 2.50% product fee – Reversion rate after fixed period is BOEBR + 4.25% – Assessment rate is 8.99%
- 5-year fixed rate at 6.69% available with a 2.50% product fee – Reversion rate after fixed period is BOEBR + 3.75% – Assessment rate is 6.69%
Speak To a Specialist Buy To Let Broker
If you are in the market for a buy to let property or need to look at remortgaging your property that you already let out, then now is the time to speak to a specialist buy to let broker. As mortgage rates increase, profit margins for rental properties are decreasing and it is important to re-evaluate and restructure your mortgages to make sure that they are still profitable. Call our team today to see how we can help.
