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Specialty: New build

07 October 2015

Simon Carr, Sales Development Director

Have I ever mentioned our specialist new build, residential and buy-to-let mortgage products to you? Right now, I guess you’re thinking - new build - haven't builders stopped building new homes? Hasn't demand for new homes dried up? That’s not the case at all. In fact it's looking strong and full of opportunity.

Next I'm going to read your mind... Ready? Here goes... Hang on, it’s coming through... That's it! You’ve thought of at least two developments you’ve noticed only this week, and I'm guessing that you disregarded the opportunity without so much as a second thought.

Let me relight your fire with some fairly significant improvements we've just made, and it will hopefully prompt you to take a look at our product ranges to find out more.

It's a fairly closed shop by the way, limited to a handful of high street lenders who dominate the new build market.

The new build domination leaves many customers’ hopes and dreams shattered simply because a historic problem is still considered by many lenders as taboo - leaving customers tarnished forever, cast out, never to borrow again. Of course, I'm talking about the credit crunch, remember it? The credit crunch was an unprecedented event that sent ripples throughout the UK. Many customers, through no fault of their own, were affected by those times. Job uncertainties and lower household incomes naturally led to some customers not being able to meet their obligations to the creditors, and may have missed one or two payments. The dust is now settling, but customers are still feeling the fall out. The credit policies of many lenders is too restrictive which dampens the aspirational dreams of customers and their hopes of getting a new home.

This is where Precise Mortgages comes in. We've improved our offering to assist those involved or wishing to get involved in new build mortgages. We're able to help those customers who may have experienced problems in the past.

Furthermore, we recognise that little statement I made above - by human nature we all aspire to better ourselves. Our new build customers have found their dream homes, visualised the day they picked up the keys and moved in, only to have their hopes dashed by the high street lenders. This is where we come along and try to pick up the pieces.

We understand that in this customer journey, being able to deal with an enquiry quickly and efficiently is essential - that's why we have a dedicated team to prioritise applications and remove any roadblocks to get the ‘yes’ needed as quickly as possible.

Of course, we have to remember that we are dealing with properties being built, and while we have to get the customer to ‘yes’ as quickly as possible, we also understand that the completion date may be way off in the future - that's why we are able to make offers available for up to nine months.

Did I mention the fact that we are also able to accept 5% builder deposits? It just keeps getting better. Can you see the specialist thread we are trusted for, coming through into the new build sector?

I'd encourage you to visit our website soon and take a look at our new products. I’ve given you a flavour of some of the new criteria enhancements we've made to our new build proposition, but there is so much more to see. What are you waiting for?

And one last thing, we will lend on flats up to 20 storeys – now, that's a bit special.


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Precise Mortgages Improves New Build

28 September 2015

Precise Mortgages, the specialist lender, has announced its revamped new build residential and buy to let mortgage proposition. Earlier this year the appointment of Kevin Beale as National Sales Manager of New Build signalled the lenders intention to develop a compelling specialist new build lending proposition.

The new build market is dominated by high street banks and mainstream lenders and as such people who need a specialist lender are denied the opportunity of buying a new build property. In addition mortgage brokers often find that if a new build mortgage application is declined by a high street lender they have very few options and therefore find it difficult to help their client.

The changes made by Precise Mortgages to their lending policy means that the self-employed, people with adverse credit or people who simply do not pass a high street lender’s credit score now have a better chance of securing their dream property. There will also be benefits for landlords who are buying a new build property as many of the changes apply to buy to let as well as residential lending.

Key changes are:

• New Build Priority Processing Service introduced to speed up application to offer timescales.

• Up to 85% LTV with 5% builder deposits accepted.

• Offers valid for 6 months with an option to request an extension for a further 3 months.

• Lending on new build flats with commercial on the ground floor.

• Revised list of acceptable new build warranty types.

• Section 106 Planning Obligations considered.

• Maximum number of storeys increased from 15 to 20.

Alan Cleary, Managing Director of Precise Mortgages says: “It doesn’t make any sense that people who have some minor adverse credit cannot buy a new build property or that self employed people with only one years accounts find it extremely difficult to secure a new build mortgage. We are asking brokers who deal in the new build market that if you get a decline from a high street lender please give us a try.”

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

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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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For intermediary use only
BBR 0.25% / 3 month LIBOR 0.29%