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'No problem'

16 September 2015
Simon Carr, Sales Development Director

As a lender solely focussed on the mortgage intermediary market, we have established ourselves as the number one specialist lender of choice. Our aim is to provide solutions for customers that are underserved by high street lenders.

I can hear you asking the question - what makes Precise Mortgages the number one specialist lender of choice?

Simply put, we truly understand customer credit profiles and go the extra mile to design credit policy and products that meets the needs of those who are underserved by high street lenders - placing the customer at the heart of all that we do.

A vast majority of customers take their finances seriously and regard their commitment to financial transactions very seriously - particularly when THEIR HOME IS AT RISK IF THEY DO NOT KEEP UP REPAYMENTS ON THEIR MORTGAGE OR ANY OTHER LOAN SECURED AGAINST IT.

Now considering the events of the past, it's no surprise that many customers will have experienced some fallout from the financial crisis - we all know how the world of mortgages and loans were hit, and hit hard - let us never forget it either!

So, looking to the NOW... Customers have recovered, they've reset expectations and live more conservatively - perhaps a little more spend thrifty - and I have no doubt, more cautiously. What hasn't disappeared is the aspiration of individuals and families to want to improve their standing.

For the high street, the super prime market is so big that it can lead to many non-super prime customers feeling despondent. They feel that the mortgage market has failed them.

The specialism is to cater for as many high street declines as possible - the non-super prime market. Recognising the historic shock is one thing, and customers who, through no fault of their own, were pushed down a Debt Management Plan (DMP for those in the know), and got declined immediately. This was largely because unsecured creditors would not (at the time) discuss financial difficulties until the customer had gone in to default with them. Then and only then would the lender discuss the options available to the customer.

Naturally the default position and subsequent DMP scared the credit profile for up to 6 years. It's like a prison sentence for a crime you could argue they didn't commit. The economy stalled, jobs became uncertain, and many had to retrain or start out on their own.

They go hand in hand don't they? Employment shock and credit shock equals a change in customer credit profile. Coming back to my point, customers have not hidden the problem. They recognised their change in circumstances and many tried to proactively manage the situation.

So a lender that recognises customers who have been employed for less than the traditional 2 years (and you'll need a projection too), who may also have experienced a historic adverse credit event should not be shunned by society - that black mark on their book does not always paint the true picture.

With products that cater for the self-employed with as little as one year’s bonafide accounts, with adverse or even an historic DMP, we demonstrate how our range of mortgages consider individual circumstances.

It was a problem before, it's not now and it's no problem to Precise Mortgages. I've given you just one very simple scenario where we can help. Specialism isn't a one trick pony, we don't just do mortgages or second charge loans or regulated bridging. We do the lot. #NOPROBLEM

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Buy to Let Mortgage Rates Reduced

02 September 2015

Precise Mortgages, the specialist lender, has today reduced rates on its buy to let mortgage range, to reinforce its continued focus on being the specialist lender of choice.

Today’s changes compliment the improved rates on the second charge loan products announced last week, and further enhance Precise Mortgages commitment to supporting buy to let landlords across the UK.

The highlights of the new range include:

• 2 year tracker rates from 3.49%

• 2 year fixed rates from 3.99%

• 5 year fixed revert rates reduced to 4.09% with rental calculation at 125% of the pay rate or revert rate

• Lifetime trackers with lower fees

• Extended fixed rate end dates

Alan Cleary, Managing Director of Precise Mortgages comments: “We estimate the size of the buy to let market to be in the region of £30billion in 2015, of which 50% will be remortgages. In order to support landlords, who are left underserved by the high street, we continue to make changes to our buy to let range.

“Not only have we reduced our buy to let mortgage rates, we’ve also reduced the revert rate on our buy to let five year fixed rate product. This coupled with our 125% rental coverage calculation means we can help buy to let landlords raise the funds they need.”

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1.6 million reasons

27 August 2015

Simon Carr, Sales Development Director

According to CML statistics, at the end of 2014 there were 1,630,600 buy-to-let mortgages outstanding.

That’s 1.63 million customers who are potentially considering capital raising.

That’s 1.63 million opportunities for you to generate new business or retain your existing customer.

We expect the buy-to-let market to reach £30m of gross advances by 2015, of which, 50% will be remortgages.

Now, not wishing to blow our own trumpet but we’ve developed a range of product lines which can help you and your customer.

Sizing the opportunity is a difficult one: we estimate a whopping 108,000 remortgage transactions this year. But here’s the opportunity – our products specifically target prime borrowers with corresponding fees and rates. We are not targeting your remortgage declines (although, you’ll be surprised how versatile our prime range is). We are targeting customers who should be offered a second charge buy-to-let loan as a suitable alternative to your normal remortgage option. Our product lines can be used in harmony with one another so you could raise a deposit, by way of a second charge on your clients residential or buy-to-let property, using one of our loan products and additionally organise the mortgage via our buy-to-let mortgage range.

Now what I’ve not mentioned are the rates on offer for our second charge buy-to-let range: starting at 5.95% on an interest-only or capital and repayment basis, our favourable rental coverage calculation uses the customer’s actual payment on the first charge rather than a nominal 5%, so if they are paying a lower rate on their first charge they may be able to achieve a larger overall loan than by remortgaging. This, coupled with our cheapest ever residential second charge rate of 4.55%, brings you compelling reasons to consider the Precise Mortgages product.

Many buy-to-let borrowers will have reverted to rates of Base Rate plus 1.5% and 2%. If they want to capital raise, a remortgage will land the customer with a reversion of between 5% and 6.58%. If the customer intends never to pay the reversion rate, they will have to enter a continuous remortgage cycle incurring the associated costs and fees along the way.

Additionally, a buy-to-let second charge is often quicker than a remortgage, with most customers expected to receive funds within a week from application.

So my call to action is:

How many buy-to-let mortgages have you arranged?

How many of those customers would you like to assist in building their current buy-to-let portfolio?

Look at our buy-to-let second charge product range – make some comparisons for yourself.

We are also excited to launch our brand new residential second charge product range which brings to you our cheapest ever pricing. Take a look – you know where to find us.

In summary, we want you to get excited about our buy-to-let products – we think you’ll like them!

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Refresh of entire residential second charge loan range

25 August 2015

Precise Mortgages, the specialist lender, has today refreshed its entire range of residential second charge loan products.

Rates start at just 4.55% and the products are targeted at Prime and Near Prime residential customers. The range is specifically designed to allow mortgage intermediaries an alternative solution to a remortgage and in many cases a second charge loan is more appropriate.

The continued development of Precise Mortgages’ second charge proposition re-affirms its belief that second charge loans should become a natural consideration for all mortgage intermediaries.

Additionally, customers with a less than perfect credit history can now benefit from a competitively priced, near prime range, where rates start as low as 5.55%.

Highlights of the new range include:

Prime Prime Near Prime Near Prime
Now Previously Now Previously
£10,000 to £30,000 4.70% 4.85% 5.70% 5.85%
£30,001 to £200,000 4.55% 4.85% 5.55% 5.85%
£200,001 to £500,000 5.75% 5.95%
  • A new product range designed specifically for loans from £5,000 to £30,000 highlights include:
    • Zero product fee – previously £295.00
    • Bank of England Life Time Trackers from 4.70% for Prime customers and 5.70% for Near Prime customers
  • Our lowest ever rate for loans from £30,001 to £200,000, starts at 4.55%
  • 2, 3 and 5 year fixed rates have all also benefited from rate reductions
  • Larger loans, up to £500,000 have seen a reduction of up to 125 bps.

Alan Cleary, Managing Director of Precise Mortgages says: “We continue to drive good customer outcomes through product design. This latest change sees rates reduced across the entire second charge loan range. Mortgage Intermediaries trust what we do and know that loans of this type are now a viable option for many customers.”

He adds “We are delighted to offer the right solution for all customers that may be locked into their existing mortgage as a result of criteria changes or simply because they want to protect their current mortgage rate.”

Further product information and a list of authorised Master Brokers and Packagers is available at

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Thinking Cleary: Alan Cleary weighs up becoming a landlord

21 August 2015

Alan Cleary, managing director at Precise Mortgages, argues the financial and legal framework for becoming a landlord has never been more complex.

My daughter is flying the nest and moving to The Big Smoke. Having qualified as a teacher last year, she has been working in the West Midlands, living at home while diligently saving for a deposit for her first flat.

Seeing her brother living and working in central London, she is longing for the bright lights of the city to replace the drudgery of suburbia. Having been young once myself, I understand the attraction.

I have been employed in the mortgage market for nearly my whole working life and like to think I know quite a bit about both products and housing. However, I have gained a new perspective on things since my daughter started to investigate where she would live come the start of term.

Even if she had saved her entire teaching salary for the past year and I had gifted her £75,000, the combined total would be insufficient to put down as a deposit on a property near the school she will be teaching at.

Of course, I knew that would be the case but, nonetheless, £500,000 for a doer-upper in Kilburn? I also notice just how far Hampstead has spread: when I lived in Kilburn 20 years ago, it was called Kilburn, not South Hampstead. This is surely a breach of the Properties Misdescriptions Act.

So I started pondering whether I should buy a property that both my son and daughter could live in.

After some thought, I was not convinced that buying in London right now was sensible. Probably better to wait until we knew what the impact of quantitative easing unwinding would be, as I have a suspicion that house prices (alongside many other assets classes) have been inflated as a result of loose monetary policy.

In addition, an interest rate rise is expected in the foreseeable future and I am interested to see what the outcome of that will be.

But my next chain of thought was that, if I was to treat this as a buy-to-let rather than a second property, and was to raise a mortgage that would be a regulated buy-to-let, this would drastically cut down the choice of mortgage products available.

OK, this might still be workable, but what about the summer Budget? The tax allowances available as a landlord are being phased out. While I do not believe the changes will have much bearing on whether buy-to-let is a good investment or not (and, as I am thinking about it as a home for my children, the tax issues become somewhat irrelevant), what matters is the notice the Chancellor has given to landlords. I doubt if the Government wants to manage the private rented sector but I believe the Treasury would like to enjoy the successes of the market, increasing its revenues in the process.

One of the last considerations I deliberated over was the fact that I did not want to be a civil servant. Never had, never would. However, the recent announcement that landlords will face tougher penalties (including prison) if they persistently allow illegal immigrants to rent their property effectively means they have become an extension of the Home Office in policing immigration.

By this point my motivation was waning. Buy-to-let has never been an investment that one should enter lightly but the financial and legal framework has never been more complex. Indeed, the case for taking professional advice before becoming a landlord has never been greater.

But I need not have worried. After I had spent days thinking about the pros and cons, my daughter told me she would much rather rent a room in a shared house than live with her brother.

*Some of the above has been exaggerated slightly for comic effect

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For intermediary use only
BBR 0.25% / 3 month LIBOR 0.35%