Precise Mortgages has expanded its residential mortgage criteria, including higher loan-to-value limits for interest-only mortgages, wider acceptance of high-rise flats and lower minimum age and income requirements.
The specialist lender now considers residential interest-only mortgages up to 75% LTV and has removed its previous £150,000 minimum equity requirement. Flats above 20 storeys can also be considered, while the minimum applicant age is now 18 and the minimum income for the primary applicant is £10,000.
The changes could be particularly relevant for London property buyers, higher earners considering interest-only, buyers of high-rise apartments and borrowers whose circumstances don’t fit standard high-street mortgage criteria.
At Oportfolio Mortgages, we regularly work with clients whose mortgage requirements are more complex than simply finding the lowest advertised rate. Changes like these matter because they can turn a case that previously fell outside a lender’s criteria into one that can now be assessed.
In this guide, we explain the latest Precise Mortgages criteria, who the changes could help and what borrowers still need to consider before applying.
Quick Answer: What Has Changed With Precise Mortgages’ Residential Criteria?
Precise Mortgages has expanded several areas of its residential mortgage criteria. Interest-only lending can now be considered up to 75% LTV, its previous £150,000 minimum equity requirement for interest-only has been removed, flats above 20 storeys can now be considered, the minimum applicant age is 18 and the minimum income for the primary applicant is £10,000.
Precise’s wider residential proposition also currently includes capital repayment mortgages up to 95% LTV, borrowing of up to six times income on qualifying cases, mortgage terms of up to 40 years and loans of up to £5 million within applicable LTV limits.
The important point is that these aren’t automatic lending guarantees. Affordability, credit profile, property acceptability and the lender’s wider underwriting criteria still apply.
What Are the New Precise Mortgages Residential Criteria?
The headline changes announced by Precise include:
| Criteria | New Precise Position |
|---|---|
| Interest-only maximum LTV | Up to 75% |
| Previous interest-only minimum equity | £150,000 requirement removed |
| High-rise flats | Flats above 20 storeys can now be considered |
| Minimum age | 18 |
| Minimum income | £10,000 for primary applicant |
| Joint borrowers | Improved support for lower incomes |
These changes sit alongside Precise’s wider residential criteria, which currently includes mortgage terms of up to 40 years, capital repayment lending up to 95% LTV and loan sizes of up to £5 million at certain LTVs.
For borrowers, however, the headline limits aren’t necessarily the most important part.
The real question is whether the changes make a mortgage possible for someone whose circumstances might previously have resulted in an automatic decline.
Precise Interest-Only Mortgages Now Available Up to 75% LTV
One of the biggest changes is to Precise Mortgages’ interest-only criteria.
Precise has increased the maximum LTV available for interest-only residential mortgages from 65% to 75%.
It has also removed its previous requirement for borrowers to have at least £150,000 of equity in the property.
Instead, Precise says there is now no minimum equity requirement provided the mortgage remains within its 75% LTV limit.
That could make a substantial difference.
How could the new 75% interest-only LTV work?
Take a property worth £800,000.
At 65% LTV, the maximum mortgage based purely on that LTV would be:
At 75% LTV, it would be:
That’s an £80,000 difference in the maximum mortgage based purely on LTV.
This doesn’t mean every borrower could automatically obtain the higher amount. Income, affordability, credit profile and the proposed repayment vehicle would still need to satisfy Precise’s criteria.
But it illustrates why moving the maximum from 65% to 75% LTV could be significant for some borrowers.
How Does an Interest-Only Mortgage Work?
With an interest-only mortgage, your monthly payments cover the interest charged on the mortgage rather than repaying the capital you originally borrowed.
This means the original mortgage balance will still need to be repaid at the end of the term, so lenders require borrowers to have an acceptable repayment strategy.
The monthly payments can therefore be lower than an equivalent capital repayment mortgage, but the borrower remains responsible for repaying the outstanding capital.
What Repayment Vehicles Does Precise Accept for Interest-Only Mortgages?
Borrowers using interest-only need an acceptable repayment vehicle.
Under Precise’s current residential criteria, acceptable repayment vehicles include:
- sale of the mortgaged property
- sale of an additional property
- savings or investments
- pension, where relevant policy requirements are met.
Precise says the value of the repayment vehicle at application must be sufficient to cover the interest-only loan amount, including fees, at the end of the mortgage term.
There are also repayment strategies Precise says it won’t accept. These include relying on future bonus or commission payments, inheritance, sale of a business, endowment policies or assets such as jewellery and antiques.
This is an important distinction.
Having a high income doesn’t automatically make an interest-only mortgage suitable or available. The lender also needs to be comfortable with how the mortgage capital will ultimately be repaid.
Who Could Benefit From Precise’s New Interest-Only Criteria?
Precise specifically highlights the changes as potentially useful for:
- home movers
- remortgage customers
- high earners with suitable repayment vehicles
- older borrowers looking to manage monthly outgoings.
Interest-only can also be relevant where a borrower has a strong income and assets but wants greater control over monthly cash flow.
Oportfolio Insight: Why 75% LTV Interest-Only Could Matter in London
The removal of the £150,000 minimum equity requirement is particularly interesting when combined with the increase to 75% LTV.
London property values mean interest-only borrowing can be relevant to professionals and higher earners purchasing more expensive homes, but a borrower’s wealth isn’t always held as equity in the property they’re buying.
Someone may have a strong salary, investments or other assets while still wanting to retain more cash rather than committing a significantly larger deposit to their home.
For these clients, the question isn’t simply:
“Can I afford the monthly interest payment?”
A good mortgage strategy also needs to consider the proposed repayment vehicle, the amount of equity being committed, the borrower’s future plans and whether interest-only genuinely makes sense compared with repayment or part-and-part borrowing.
Precise widening its criteria doesn’t mean interest-only is automatically the right option. But it potentially gives advisers another structure to consider where a standard repayment mortgage doesn’t meet the client’s objectives.
In our work with London professionals, we regularly see borrowers whose overall financial position is strong but whose wealth is spread across investments, pensions, bonuses or other assets rather than sitting entirely in property equity.
Precise Mortgages Will Now Consider Flats Above 20 Storeys
Another significant change, particularly for the London property market, is Precise’s approach to high-rise flats.
Precise says that flats above 20 storeys can now be considered, removing a potential barrier for buyers purchasing apartments in taller residential developments.
This matters because mortgage approval isn’t just about the borrower. The property also needs to meet the lender’s criteria.
High-rise flats can sometimes present additional mortgage challenges, with lenders taking different approaches to factors such as building height, construction, cladding, valuation and the overall development.
A buyer can therefore have strong income, good credit and a substantial deposit but still encounter mortgage problems because of the property itself.
This is particularly relevant in London, where modern apartment developments make up a significant part of the property market.
If one lender declines a property because of the building, that does not necessarily mean the flat is unmortgageable. Another lender may take a different approach to the same development.
For buyers purchasing modern apartments in London and other major UK cities, Precise’s expanded criteria could therefore provide another potential lending option.
Importantly, “considered” doesn’t mean automatically accepted. The individual property will still need to satisfy Precise’s valuation and full property criteria.
Precise Reduces Minimum Age and Income Requirements
Precise has also widened its applicant eligibility criteria.
The minimum applicant age is now 18, while the minimum income for the primary applicant is £10,000.
This could be particularly useful for younger buyers and joint mortgage applications where one applicant earns a lower income.
Precise gives an example of two 20-year-old applicants earning £13,000 and £14,000 respectively, purchasing a £160,000 property with a £60,000 gifted deposit and requiring a £100,000 mortgage.
Under the previous age and income criteria, the case would have failed before reaching full affordability assessment. Under the new criteria, it can proceed to affordability assessment.
That distinction is important.
A £10,000 minimum income doesn’t mean someone earning £10,000 can automatically get a mortgage. It simply means they can potentially meet the lender’s initial income requirement. The amount Precise is prepared to lend will still depend on income, expenditure, debts, dependants, mortgage term, credit profile and the overall application.
What Else Does Precise’s Residential Mortgage Range Offer?
The new criteria sit within Precise’s wider specialist residential mortgage range.
Depending on the individual application and product, Precise’s current residential proposition includes:
- capital repayment mortgages up to 95% LTV
- interest-only mortgages up to 75% LTV
- mortgage terms of up to 40 years
- loans of up to £5 million at qualifying LTVs
- options for self-employed borrowers with one year’s accounts
- borrowing of up to six times income on qualifying cases
- options for some borrowers with previous adverse credit.
These maximums shouldn’t be viewed as guarantees. Affordability, credit profile, property type and the lender’s full criteria will determine what is actually available.
Could Precise Help If My Bank Has Declined My Mortgage?
Potentially, but the reason for the decline matters.
Different lenders can take very different approaches to affordability, income, property type, interest-only borrowing, self-employment and credit history.
For example, someone buying a high-rise London flat could have excellent income and a substantial deposit but still be declined because their chosen lender doesn’t accept the building.
Similarly, a borrower could comfortably afford an interest-only mortgage but find that their lender’s maximum LTV or repayment vehicle criteria don’t work for them.
A decline from one lender therefore doesn’t necessarily mean that a mortgage isn’t possible.
The important step is identifying why the application doesn’t fit and then looking for lenders whose criteria better suit the borrower and property.
Mortgage declined or struggling with lender criteria?
A decline from one lender doesn’t necessarily mean your mortgage isn’t possible. We can assess why the application doesn’t fit and check whether another lender takes a different approach.
Who Could Benefit From the New Precise Mortgage Criteria?
The latest changes could potentially be particularly relevant for:
- Interest-only borrowers looking for up to 75% LTV
- London apartment buyers purchasing in high-rise developments
- Higher earners considering interest-only as part of their mortgage strategy
- Younger first-time buyers who previously fell outside the minimum age requirement
- Joint borrowers where one applicant has a lower income
- Self-employed borrowers with a shorter trading history
- Borrowers whose circumstances don’t fit standard high-street mortgage criteria.
Precise won’t necessarily be the right lender for everyone in these circumstances. But the changes mean that some cases which may previously have fallen outside its criteria can now potentially be considered.
Is Precise Mortgages Right for Me?
That depends on your individual circumstances.
Precise operates within the specialist mortgage market and can consider circumstances that may not fit some mainstream lenders. But that doesn’t automatically make it the most suitable lender.
A mortgage recommendation should consider more than whether you meet the basic criteria.
The interest rate, fees, monthly payment, total cost, affordability, property, mortgage term, repayment method and your longer-term plans all need to be considered.
For some borrowers, a mainstream lender may still provide the most suitable mortgage. For others, specialist criteria such as Precise’s can provide options that weren’t previously available.
Speak to a Specialist Mortgage Adviser
If you’ve been declined by a high-street lender, are considering an interest-only mortgage or are buying a property that doesn’t fit standard lending criteria, specialist lenders such as Precise may provide additional options.
But meeting one headline criterion doesn’t necessarily mean Precise will be the right lender.
At Oportfolio Mortgages, we’ll assess your income, affordability, deposit, credit profile, property and longer-term plans before comparing lenders whose criteria could work for your circumstances.
This is particularly important with specialist mortgages, where differences in affordability calculations, property criteria and underwriting can materially affect the options available.
Has Precise removed its £150,000 minimum equity requirement?
Yes. Precise says the previous £150,000 minimum equity requirement for interest-only mortgages has been removed, subject to the mortgage remaining within its maximum 75% LTV criteria.
Does Precise lend on flats above 20 storeys?
Precise says flats above 20 storeys can now be considered. The individual property remains subject to valuation and the lender's full property criteria.
What is the minimum income for a Precise residential mortgage?
Precise's current criteria states a £10,000 minimum income for the primary applicant. Meeting this threshold doesn't mean a mortgage will automatically be affordable or approved.
Can Precise lend up to six times income?
Precise currently advertises borrowing of up to six times income on qualifying cases. The amount available will depend on the borrower's full affordability assessment and circumstances.
Does Precise accept self-employed borrowers with one year's accounts?
Precise's residential proposition includes options for some self-employed applicants with one year's accounts, subject to its full lending criteria.
