Online Criteria Guide

All Residential and Buy to Let lending criteria applies to long term and second charge lending unless otherwise stated.
 
 
 

Please select relevant criteria here

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

What's New

Document Downloads

  • Interest Only now available on Tiers 1-5 where a suitable repayment vehicle is in place.
  • Affordability calculated according to the repayment method selected - this now includes Interest Only.
  • Loans available up to £2,000,000 up to 60% LTV.

A

Accountant Qualifications

We are able to consider accounts prepared by accountants with the following qualifications: ACA/FCA, CA, ACCA/FCCA, AAPA/FAPA, CIMA and CIPFA. We will need to be able to verify this qualification in order to consider the accounts provided.

Adverse Credit

Residential Mortgages

Residential Second Charge Loans

Residential Mortgages

Precise Mortgages allows a certain amount of adverse credit with levels being dependant on the product chosen. As a guide our maximum adverse allowed is:

Defaults: 5 in 24 months
CCJs: 3 in 24 months
DMP: Active and satisfied DMPs accepted (click here for further details). To qualify for our standard residential criteria, a DMP must have been satisfied for a minimum of 36 months. Specific product range available, click here for full details.
Mortgage arrears: 1 in 12 months, 3 in 36 months (worst status), 0 in last 3 months
IVA and bankruptcy: Must have been discharged for 6 years
Repossessions: Are not accepted

Applicants must not have had any defaults, CCJs or mortgage/secured arrears recorded in the three months before application.

Please be aware that further restrictions may apply, depending on the product chosen. See relevant product guide for further details.

Residential Second Charge Loans

As a guide our maximum adverse levels on a Second Charge Loan are:

Defaults: 2 in 12 months, 0 in 3 months (maximum total value of £5,000)
CCJs: 1 in 12 months, 0 in 3 months (maximum total value of £3,000)
Mortgage arrears: 1 in 12 months (worst status), 0 in last 3 months
IVA and bankruptcy: Must have been discharged for 6 years
Repossessions: Are not accepted
Debt management plans: Acceptable if active for over 12 months and no missed payments

Applicants must not have had any defaults, CCJs or mortgage/secured arrears recorded in the three months before application.

Please be aware that further restrictions may apply, depending on the product chosen. See relevant product guide for further details, click here for more information. .

Age

Residential Mortgages

Residential Second Charge Loans

Residential Mortgages

Minimum age: 21
Maximum age: 70 at the end of the mortgage term, providing this is within the stated retirement date.

We may consider applicants up to age 75 upon referral, this will be subject to underwriter review and stated retirement date. Maximum age of 85 for non-contributory applicants.

Residential Second Charge Loans

Minimum age: 25
Maximum age: 70 at the end of the mortgage term, providing this is within the stated retirement date.

We may consider applicants up to age 75 upon referral, this will be subject to underwriter review and stated retirement date. Maximum age of 85 for non-contributory applicants.

Agency Workers

Unfortunately we are unable to accept applicants who are currently employed by an employment agency.

Armed Forces

Residential Mortgages

We can accept applications where your applicant is British Armed Forces Personnel.

We can also accept an application if your applicant has a BFPO address (British Forces Post Office). However this only applies if their Barracks is within the UK. We don’t accept this in UK overseas territories.

We support the Forces Help to Buy (FHTB) scheme, we can allow this to be used in conjunction with the Government Help to Buy Scheme. The monthly repayment noted on the PIN (Personal Information Note), must be included as a commitment when keying.

We don’t allow Ministry of Defence loans.

Annexe

We may consider properties where a 'granny annexe' is present. However, we must be able to establish that the annexe does not benefit from its own facilities (self-contained) and will not be occupied independantly of the main property. Suitability of the property will be subject to underwriter review and valuer's comments.

Annual Bonus

An annual bonus can be included as part of a customer’s total income providing this is regular and two years' verification can be provided. Please note that we will only include 50% of any bonus in our affordability assessment, however the full amount should be keyed in the online application.

B

Builder’s Deposit

Residential Mortgages

A Builder’s Deposit is only acceptable on New Build purchases, up to 5% cash based incentive is acceptable (i.e. stamp duty, legal fees, cash back, mortgage payments). Any incentive amount over this will be deducted from the lower of the purchase price/valuation before calculating the LTV. The Builder’s Deposit should be detailed on the Disclosure of Incentives form.

Builder’s Second Charge

Residential Mortgages

A Builder’s Second Charge is acceptable providing the customer has a 15% deposit from their own funds. Repayments will be taken in to account for affordability.

Building Warranty

New Build properties and properties less than 10 years old will need to benefit from an acceptable building warranty provided by one of the following:

  • Advantage HCI
  • Aedis Warranties Ltd
  • Building Life Plans
  • Buildzone
  • Checkmate (Castle 10)
  • International Construction Warranties (ICW)
  • LABC
  • N.H.B.C. Guarantee
  • Premier Guarantee Scheme
  • Professional Consultants Certificate (previously an Architect’s Certificate). The issuing architect should have minimum professional indemnity insurance equivalent to the greater of £500,000 or the property value.
  • Protek
  • The Q Policy
  • Zurich Municipal “New build”

Please note: we are unable to accept retrospective building warranties.

 

C

Capital raising

We will consider capital raising on remortgage and second charge loan applications, with the exception of Help to Buy remortgages.

Certification

Where certified documents are required in support of an application, they should be certified by a suitable representative of the introducing broker or intermediary company. The certification will need to clearly show the following:

  • The company name
  • The certifier’s name and their position within the company
  • The certifier’s signature
  • The date

Documents containing a photograph of the applicant will need to be certified as ‘true copy of the original’ and ‘true likeness of the applicant’ (unless the applicant has not been seen face to face).

ID and residency documents must be certified individually, for further details please see our Anti Money Laundering Guidelines.

Click here to download a copy of our Document Submission form.

For more information on our validation requirements for supporting documents, click here.

Child Benefit

Unfortunately we are unable to accept Child benefit as an income source.

Child Maintenance

If a customer is in receipt of child maintenance, we can consider 50% of this as an additional income source. This must be via a court order and have a minimum of 3 years left to run. The full amount should be included on the application.

If a customer pays for child maintenance, this should be included on the application as a commitment and the dependent child also captured within the application.

CIS Contractor

Applicants working in construction as a Construction Industry Scheme (CIS) contractor are acceptable and will be treated as self-employed and the relevant income verification will be required.

Commercial Property

We are unable to consider any property where commercial usage exceeds 20%.

Flats above or adjacent to commercial premises may be considered on an individual basis.

Home office usage is acceptable providing that this does not involve clients being seen on the premises on a regular basis.

For any other form of commercial usage, please contact us for further information.

Construction

We accept properties of Standard and Modern Methods of Construction (MMC).

The following methods of construction are not acceptable:

  • Any property of Easiform construction.
  • Any property containing mundic concrete.
  • Any property containing no-fines concrete.
  • Flats or maisonettes in blocks exceeding 20 storeys.
  • Grade 1 listed buildings in England and Wales / Grades A and B in Scotland.
  • Mobile homes and houseboats.
  • Properties constructed with high-alumina cement, timber framed property with no brick skin or 100% steel or timber framed property. This does not include high rise developments.
  • Property designated defective under Part XVI Housing Act 1985, Housing (Scotland) Act 1987 or Pre-Cast Reinforced Concrete (PRC) property (irrespective of whether repaired under a licence repair scheme).

Contractors

We will accept general contractors, CIS contractors and applicants employed on a fixed term contract. In all instances, where an applicant is responsible for paying their own tax or national insurance they will be classed as Self-employed and the relevant income verification will be required. If an applicant is employed on a fixed term contract that has less than 6 months remaining, we will require written confirmation from the employer stating their intention to renew the contract.

Criminal convictions

A mortgage application cannot be considered before a criminal conviction is spent. Please contact us directly to discuss the time limits of spent convictions.

 

D

Day of Completion

Our customers are expected to be in the UK on the day of completion. If they are not we may delay release of funds pending further enquiries.

Debt Consolidation

We will accept applications where there is an element of capital raising for debt consolidation. We will require a fully completed debt consolidation form and where affordability is dependant on these debts being repaid, there will be a condition added to the offer.

Debt Management Plans (DMP)

Residential Mortgages

Residential Second Charge Loans

Residential Mortgages

Active DMPs

DMPs active at application will need to have been in place for at least 12 months and we will require a DMP reference from the provider to include:

  • Date of agreement
  • Amount outstanding
  • Details of all creditors including lender. Account number, payment and balance
  • Confirmation that the last 12 months’ payments have been on time

We will also require a completed DMP Submission form.

Active DMPs do not have to be satisfied on completion but must be included as a monthly commitment on the application.

Debt Arrangement Schemes (DAS) are acceptable and will be treated in the same way as a DMP (Scotland only).

For active DMPs the repayment method must be Capital and interest.

DMPs satisfied within the last 36 months

For DMPs satisfied within the last 36 months we will require confirmation from the provider the date the DMP was satisfied and that it was repaid in full (satisfied DMPs do not need to have been active for 12 months).

For DMPs satisfied within the last 36 months, the repayment method must be Capital and interest.

DMPs satisfied over 36 months ago

For DMPs satisfied over 36 months ago standard lending policy will apply.

DMPs are acceptable on our Right to Buy product range providing they have been satisfied for over 36 months.

Please note: any payment the customer makes directly to creditors within the DMP, outside of the arrangements of the plan, will be seen as a break in the agreement and we will be unable to consider the application.

See our DMP Guide for more information.

Residential Second Charge Loans

DMPs are acceptable providing they have been active for over 12 months and no payments have been missed.

Deposit

Residential Mortgages

Acceptable deposit sources

The deposit should come from the applicant’s own resources and have originated within the EEA without recourse to additional borrowing. We will also accept the following sources of deposit:

  • Help to Buy
  • Forces Help to Buy
  • Family gifts
  • Remortgage or secured loan on an existing property owned by the applicant
  • Builder’s Deposit (New Build only)
  • Builder’s Second Charge

Unacceptable deposit sources

The following forms of deposit/incentive are not acceptable:

  • Purchase from a company in which the applicant has an interest.
  • Ministry of Defence Loan - this differs from Forces Help to Buy.
  • Cryptocurrencies - any deposit sourced via cryptocurrencies e.g. bitcoins, is not accepted.

Please see Vendor’s deposit, family purchase, family gifted deposit and Help to Buy for further information on these scenarios.

Diplomatic Immunity

Applicants with diplomatic immunity from UK law will not be accepted.

 

E

Employed by family

Where an applicant is employed by a family member we will require a letter from the company's accountant addressed to Precise detailing the applicant's job title, role, salary, and length of time with the company. This is in addition to our standard and income verification requirements.

Employment

Employed

Applicants must be in permanent employment that is not subject to a current probationary period. Applicants must have been in their current job for a minimum of 3 months with 12 months continuous employment.

Applicants on a fixed term contract basis are acceptable but if there is less than 6 months remaining on the contract confirmation of renewal may be required.

Agency workers are not acceptable.

Where an applicant has a shareholding of 25% or over, or is responsible for overall payment of their tax and National Insurance, they will be classed as self-employed.

For applicants on a zero hours contract click here for more information.

Self-employed

Applicants will need to have been trading for a minimum of 12 months and we will require income verification for the number of years’ income keyed onto our online application.

The following income will be accepted:

  • For sole traders - net profit.
  • For partnerships - the relevant share of the net profit.
  • For limited company directors - remuneration plus dividends.

Income verification will be required in all instances.

Ex-local Authority Flats

Ex-local authority flats or maisonettes may be considered providing they do not contain deck access. The block should be predominantly privately owned and will be subject to an individual underwriter review.

 

F

Family Gifted Deposit

Residential Mortgages

A family gift is an acceptable source of deposit unless the property is being purchased from the family member who is providing the gift. We will require a fully completed gifted deposit form, click here to download a copy.

Where the property is being purchased from a family member at a discounted price, this is acceptable providing the family member will not continue to reside. Our lending and assessment of the maximum LTV will be based on the reduced price and the vendor relinquishing all rights to the property. The applicant must commit their own funds to the transaction.

Gifted deposits will not be accepted from anyone that will reside in and/or have an interest in the property but will not be party to the mortgage.

Family Purchase

Where a property is being purchased from a family member at a discounted price, this is acceptable providing the family member will not continue to reside. Our lending and assessment of the maximum LTV will be based on the reduced price and the vendor relinquishing all rights to the property. The applicant must commit their own funds to the transaction.

Fees

There are a number of additional fees involved in a mortgage application. Please refer to the ‘Tariff of mortgage charges’ document for full details.

The product and telegraphic transfer fees can be added to the loan amount. Any fees added will not be incorporated into the LTV calculation but will be included in our affordability assessment.

Other fees include Product Switching Fee, Property Re-inspection Fee, Telegraphic Transfer Fee (£25) and Redemption Administration Fee (£114).

All fees include VAT (where applicable).

Click here for information on Residential Mortgage valuation fees.

Click here for information on Second Charge Loan valuation fees.

First Time Buyers (FTB)

A first time buyer is an applicant who has not owned a property within the last 18 months.

Flats/Maisonettes/Apartments

  • Must be self-contained with private facilities.
  • Must have direct access to the highway via covered common parts.
  • Up to a maximum of 20 storeys.
  • Minimum floor area 30m2

Flats above or adjacent to commercial premises may be considered on an individual basis.

Click here for details of ex-local authority flats.

Studio flats are acceptable, click here for further details.

Flying Freehold

A property with an element of Flying Freehold can be considered providing it does not exceed 10% of the total area.

Forces Help to Buy (FHTB)

Residential Mortgages

We accept deposits from Forces Help to Buy scheme. The monthly repayments for this will be included in our affordability assessment as a commitment.

Foreign Nationals

Where an applicant is from outside the EEA they must have been resident in the UK for the last 3 years and have permanent rights to reside in the UK.

Foster carers

We can consider lending to foster carers on a case by case basis. Proof of income will be required in all instances in line with our self-employed income verification requirements.

Freehold

Acceptable for houses only. Freehold flats/maisonettes are not acceptable.

Funds Release

Our customers are expected to be in the UK on the day of completion. If they are not we may delay release of funds pending further enquiries.

 

G

General Data Protection Regulation (GDPR)

As part of GDPR it is important that all customers and intermediaries are aware of how we use personal data, please select the relevant Privacy Notice below for further details:

Guarantors

We are unable to consider guarantors on our Residential Mortgages.

 

H

Help to Buy (HTB) Purchases

Residential Mortgages

We accept applications on the Help to Buy England, Help to Buy London, Help to Buy Wales and Help to Buy Scotland shared equity schemes. Click here for information on Help to Buy Scotland.

The following applies to Help to Buy purchases in England and Wales only:

  • The Government’s Help to Buy shared equity schemes are only available to assist with the purchase of new build properties.
  • Maximum property value: £600,000 in England and £300,000 in Wales.
  • Customers will need to provide a minimum 5% deposit from their own resources.
  • Payments will be required on the Help to Buy Equity Loan after five years in addition to the repayments on the mortgage the customer takes with Precise Mortgages.
  • The Help to Buy Equity Loan should be added to the DIP as a monthly commitment.
  • The monthly commitment can be calculated using Precise Mortgages’ Residential Calculator.

When submitting applications for Help to Buy Mortgages it is the responsibility of the Intermediary to ensure that the application is eligible and compliant with the rules of the appropriate Help to Buy scheme before the submission is made.

Click here to view our Help to Buy Remortgage guide.

For more information your customer should visit www.helptobuy.gov.uk/equity-loan/find-helptobuy-agent/.

Help to Buy Remortgage - no capital raising

Residential Mortgages

The following applies to Help to Buy schemes in England and Wales only. For Scotland click here.

We are able to consider a remortgage transaction where the property was originally purchased on any shared equity Help to Buy Scheme where the loan amount will be limited to the repayment of the existing mortgage secured on the property.

The Help to Buy Equity Loan: Monthly interest fee payments are payable on the Help to Buy Equity Loan after five years, which are in addition to the monthly repayments for the mortgage the customer takes with Precise Mortgages. As part of the Help to Buy Equity Loan scheme the monthly interest fee payments will initially be charged at a rate of 1.75% per annum and will increase by RPI +1% every year until fully repaid. To account for the annual rise in the payments on the Help to Buy Equity Loan, Precise Mortgages stresses this commitment by multiplying it by 125%. The Residential Calculator will do this automatically.

The Help to Buy Equity Loan should be added to the DIP in the ‘Applicant Commitments’ section as a loan. We require both the Help to Buy Equity Loan balance and the monthly interest fee payment amount to be entered.

The monthly interest fee payment on the Help to Buy Equity Loan must be calculated using Precise Mortgages’ Residential Calculator. To complete this information either the Help to Buy Equity Loan amount or the current Help to Buy Equity Loan monthly commitment is required, if this is already being paid.

As the Help to Buy agent needs to provide their approval of the remortgage, we need to be sure that this has been obtained before we proceed. We will not instruct our valuation until you have confirmed that the customer is happy to go ahead following our initial assessment. You should contact our processing team to confirm this by either calling 0330 1596001 or email [email protected].

When submitting applications for Help to Buy remortgages it is the responsibility of the Intermediary to ensure that the application is eligible and compliant with the rules of the appropriate Help to Buy scheme before the submission is made.

Click here to view our Help to Buy Remortgage guide.

For more information your customer should visit:
For England - www.myfirsthome.org.uk
For Wales - www.gov.wales/help-buy-wales/repaying-shared-equity-loan

Help to Buy Remortgage - with capital raising

Residential Mortgages

The following applies to Help to Buy schemes in England and Wales only. For Scotland click here.

We are able to consider a remortgage transaction where the property was originally purchased on any shared equity Help to Buy Scheme and the customer wishes to borrow additional funds to partially repay the equity loan, this is known as staircasing.

The new loan amount will be limited to the amount required to repay the existing mortgage on the property plus the amount required to partially repay the Help to Buy Equity Loan. If the Help to Buy Equity Loan is being repaid in full our standard residential criteria will apply and the application should be submitted on one of our core residential products and not as a Help to Buy application.

The Help to Buy Equity Loan: Monthly interest fee payments are payable on the Help to Buy Equity Loan after five years, which are in addition to the monthly repayments for the mortgage the customer takes with Precise Mortgages. As part of the Help to Buy Equity Loan scheme the monthly interest fee payments will initially be charged at a rate of 1.75% per annum and will increase by RPI +1% every year until fully repaid. To account for the annual rise in the payments on the Help to Buy Equity Loan, Precise Mortgages stresses this commitment by multiplying it by 125%. The Residential Calculator will do this automatically.

The Help to Buy Equity Loan should be added to the DIP in the ‘Applicant Commitments’ section as a loan. We require both the equity loan balance and the monthly interest fee payment amount to be entered.

The monthly interest fee payment on the Help to Buy Equity Loan must be calculated using Precise Mortgages’ Residential Calculator. To complete this information either the Help to Buy Equity Loan amount or the current Help to Buy Equity Loan monthly commitment is required, if this is already being paid.

As the Help to Buy agent needs to provide their approval of the remortgage, we need to be sure that this has been obtained before we proceed. We will not instruct our valuation until you have confirmed that the customer is happy to go ahead following our initial assessment. You should contact our processing team to confirm this by either calling 0330 1596001 or email [email protected].

When submitting applications for Help to Buy remortgages it is the responsibility of the Intermediary to ensure that the application is eligible and compliant with the rules of the appropriate Help to Buy scheme before the submission is made.

Click here to view our Help to Buy Remortgage guide.

For more information your customer should visit:
For England - www.myfirsthome.org.uk
For Wales - www.gov.wales/help-buy-wales/repaying-shared-equity-loan

Help to Buy Scotland

Residential Mortgages

We accept applications on the Help to Buy Scotland Affordable New Build and Small Development Schemes.

Help to Buy Scotland - Purchase

  • Maximum LTV: 80%
  • Maximum property value: £200,000
  • Repayment type: Capital and interest
  • Maximum term: 35 years
  • Deposit: customers will need to provide a minimum 5% deposit from their own resources.
  • Property: Help to Buy schemes are only available to assist with the purchase of new build properties.
  • Offer: new build mortgage offers are valid for 6 months from the date of valuation.
  • Equity Loan: the Government equity loan does not have an associated fee payment in Scotland and therefore does not need to be included as a commitment in the affordability assessment.

Help to Buy Scotland Remortgage

Residential Mortgages

We are able to consider a remortgage transaction where the property was originally purchased on the Scottish Shared Equity Help to Buy Scheme.

A Help to Buy remortgage is available where the loan amount is limited to the repayment of the existing mortgage secured on the property.

We are also able to consider a remortgage transaction where the property was originally purchased on the shared equity Help to Buy Scheme and the customer wishes to borrow additional funds to partially repay the equity loan, known as staircasing or tranching up. In Scotland, staircasing must be in tranches of 5% of the Help to Buy Equity Loan.

Equity Loan: the Help to Buy Equity Loan does not have an associated fee payment in Scotland and therefore an amount does not need to be included as a commitment in the affordability assessment.

When submitting applications for Help to Buy remortgages it is the responsibility of the Intermediary to ensure that the application is eligible and compliant with the rules of the appropriate Help to Buy scheme before the submission is made.

Click here to view our Help to Buy Scotland Criteria and Product Guide.

For more information your customer should visit www.gov.scot/publications/sale-shared-equity-procedures.

Housing Benefit

We are unable to accept applications where the applicant has been in receipt of Housing Benefit in the last 12 months.

 

I

Identification (ID)

In all cases we will try to electronically verify the identity of the applicant. On occasion this is not possible and we will require Certification documentary evidence to satisfy our requirements. The documentation you need to provide to us is detailed in our Anti-money laundering guidelines.

Income Sources

The following are acceptable sources of income:

Employed

Income type Proportion allowable in calculation
Basic salary 100%
Shift allowance 100%
Large town allowance 100%
Childcare payments 100%
Mortgage subsidy 100%
Car allowance 100%
Overtime/bonus/commission 50%* (if regular/"guaranteed")

*Full amount should be keyed into the application.

Self-employed

  • For sole traders - net profit.
  • For partnerships - their share of the net profit.
  • For limited company directors - remunerations plus dividends.

The following can be included as income where evidence is available:

  • Sole traders/partnerships:
    • Private pension payments where declared on the tax calculations.
  • Directors (owns 25% or more shares)
    • Director's car allowance.
    • Director's pension payment.

Additional income

Source Amount eligible Criteria
Tax credits 100%
  • Current Inland Revenue documentation
  • Must have a minimum of 3 years left to run (based on ages of children)
Maintenance 50%*
  • Must be via a court order
  • Must have a minimum of 3 years left to run
Permanent second job Maximum 50%
  • Position held for more than 12 months
  • Should be a permanent position
  • Confirmation that the hours worked are sustainable
Pension income 100%
  • Confirmed personal or occupational pension can be included

*Full amount should be keyed into the online application.

Income Verification

Residential Mortgages

Residential Second Charge Loans

Residential Mortgages

Employed

The latest 3 months' payslips and latest P60 document (the latest 2 years' P60 will be required if an annual bonus is included).

Self-employed

1 year's tax calculations and HMRC Tax Year Overviews or accounts (we only accept accounts prepared by accountants with the following qualifications: ACA/FCA, CA, ACCA/FCCA, AAPA/FAPA, CIMA, CIPFA).

In some cases 2 years' income verification is required (SA302s will be accepted as verification for previous years). Please see our Residential Criteria Guide or Residential Second Charge Criteria Guide for more details).

Residential Second Charge Loans

Employed

The latest 2 months’ or latest 3 weeks payslips and P60 document.

Self-employed

The latest 1 year's tax calculation plus the corresponding Tax Year overview or accounts.

In some cases 2 years' income verification is required (SA302s will be accepted as verification for previous years). Please see our Residential Criteria Guide or Residential Second Charge Criteria Guide for more details).

Inherited Property

Residential Mortgages

Where a property has been inherited, probate must have been granted prior to a mortgage application being made. Evidence of the Grant of Probate should be provided ahead of a Mortgage Offer being issued. Where the beneficiary is looking to capital raise on the property, the application should be submitted to us as a remortgage and no minimum period of ownership will apply in these cases.

If the applicant is purchasing the property having being granted part of this in probate, we have no minimum period of ownership for the vendor.

Interest Only

    Residential Mortgages

  • Maximum LTV 65%.
  • Affordability will be calculated according to the repayment method selected.
  • Not available on DMP, Help to Buy or Right to Buy products.

The value of the repayment vehicle, at the time of application will need to cover the Interest Only loan amount (inclusive of any fees).

The repayment vehicle must be in pounds Sterling and for joint applications the vehicle can be owned jointly or in the individual names of each applicant.

A repayment vehicle that is owned with an individual that is not party to the mortgage will not be accepted.

We are able to consider the following repayment vehicles:

  • Sale of security property - subject to a minimum equity of £150,000 at the time of application, this will be determined by a full RICS valuation carried out as part of the application process.
  • Sale of additional property - the full property details including address, property type, number of bedrooms, estimated value and outstanding mortgage balance should be provided. An AVM will be used to validate the property value at the time of application. A Land Registry search will be undertaken to confirm ownership, although a Legal Charge will not be placed over any additional property used as a repayment vehicle.
  • Savings/Investments - Examples of acceptable savings/investments are:
    • Bank/Building society savings accounts;
    • ISAs including both Cash and Stocks & Shares ISAs;
    • Premium Bonds; and
    • Publicly listed UK Stocks and Shares (only shares listed on the FTSE Main Market and traded in Sterling are acceptable).

Evidence of the savings/investments will be required in the form of the most recent statement or share certificate (dated within the last 3 months).

  • Pension - occupational or private pensions are accepted. Final salary pension schemes will not be accepted. The most recent annual statement will be required to confirm the current value of the pension at the time of application.

We will require documentary evidence of all repayment vehicles in place, where applicable.

Repayment vehicles must be in pounds Sterling.

L

Leasehold

The minimum remaining lease term must be 70 years at the time of application.

Let to Buy (LTB)

Residential Mortgages

Any application that involves the applicant retaining their existing residential home on a buy to let basis will be classed as a Let to Buy. We are able to consider lending on the existing property and/or the onward purchase. The maximum LTV is 80% on any application that is part of a Let to Buy transaction.

We will require a consent to let from the existing lender or evidence of refinancing on a buy to let basis.

The remortgage and purchase must complete simultaneously.

Loan Amount

Residential Mortgages

Residential Second Charge Loans

Residential Mortgages
  • Minimum loan £25,001
  • Maximum loan £1,000,000
Residential Second Charge Loans
  • Minimum loan £10,000
  • Maximum loan £500,000 on standard criteria, larger loans can be considered on referral.

LTV limits

Residential Mortgages

Residential Second Charge Loans

Residential Mortgages

Precise Mortgages offers the following maximum LTV limits:

  • 85% LTV up to £500,000
  • 80% LTV up to £750,000
  • 70% LTV up to £1,000,000
  • Interest Only up to 65% LTV

    Part and Part up to 75% LTV (Interest Only element must not exceed 50% LTV)

    Studio flats up to 70% LTV

    Let to Buy applications and applications where non self-funding mortgages exist are restricted to 80% LTV.

Residential Second Charge Loans

Precise Mortgages offers the following maximum LTV limits:

  • 85% LTV up to £100,000
  • 80% LTV up to £250,000
  • 75% LTV up to £500,000
  • Loans greater than £500,000 may be available on referral.

LTV limits are based on the net loan amount exclusive of any fees.

Location

Residential Mortgages

Residential Second Charge Loans

Residential Mortgages

Properties located in mainland England, Wales and selected postcodes in Scotland are acceptable. The list below shows the Scottish postcodes we accept:

  • Tayside DD - All
  • Lothian EH - All
  • Stirlingshire FK - All
  • Glasgow G - All
  • Ayrshire KA - All mainland
  • Fife KY - All
  • Lanarkshire ML - All
  • Renfrewshire & Argyll PA - PA1 to PA19
Residential Second Charge Loans

Properties located in mainland England and Wales are acceptable.

 

M

Marital Status

Applications from those who are married, in civil partnerships or are co-habiting should be in joint names.

Where the original mortgage is in a sole name, we may consider a remortgage in a sole name, subject to underwriter discretion.

Maternity Leave

Applicants on maternity leave are acceptable providing they will return to work on the same terms of employment. We will require a letter from the employer confirming the applicant's salary and working hours before commencing maternity leave, the return to work date, salary and working hours after returning to work and whether there are any changes to the applicant's contract of employment. This should be addressed to Precise Mortgages.

Minimum Ownership

Residential Mortgages

Residential Second Charge Loans

Residential Mortgages

Where a customer is looking to place a remortgage application, they must have owned the property for 12 months.

Residential Second Charge Loans

Applicants must have owned the property for a minimum of 6 months before applying for a Second Charge Loan.

Minimum Income

£15,000 for the main applicant from primary employment.

Minimum Property Value/Purchase Price

The minimum value or purchase price is £50,000, or £150,000 in London postcode districts.

Modern Methods of Construction (MMC)

Properties that have any MMC components can be considered providing the property was constructed by one of the following companies:

  • Barratt Developments
  • Bellway
  • Berkeley
  • Bloor Homes
  • Bovis Homes
  • CALA Homes
  • Crest Nicholson
  • Galliford Try
  • Persimmon
  • Redrow
  • Taylor Wimpey
 

N

Nationality

All UK and EEA nationals are acceptable providing they have a 3 year UK residential history. Non EEA Nationals must have been resident in the UK for the last 3 years and have permanent rights to reside in the UK.

New Build

Residential Mortgages

Precise Mortgages define ‘New Build’ as a property that has never been occupied.

The maximum LTV is 85%, plus 5% builder incentive. There should be a minimum customer contribution of 10% for both houses and flats, with the exception of Help to Buy applications where there must be a minimum customer contribution of 5%.

Where the builder is offering any cash-based incentive e.g. discounted purchase price, stamp duty paid, legal fees paid, cash-back after completion, mortgage paid etc, this is acceptable up to a maximum of 5% of the transaction without a requirement to reduce the purchase price.

Some Section 106 planning obligations are acceptable.

An acceptable building warranty will be required, we are unable to accept retrospective warranties.

NHS Bank Nursing

We may be able to consider applicant who are employed on an NHS Bank Nursing basis. Where an applicant is a permanent employee of the NHS but earns additional pay from NHS Bank Nursing, we will only include the primary earnings in our affordability assessment.

 

O

Offer Validity

Offers will be valid for 3 months from the valuation date. An offer extension may be considered (up to a maximum of 6 months from original valuation) on request from either a broker or a solicitor.

Residential Mortgages

New Build offers will be valid for 6 months from the valuation date. An offer extension for a further 3 months can be considered subject to:

  • Confirmation of any changes of circumstance are received in month 5 of the mortgage offer, before the expiry of the initial 6 month offer period.
  • A new credit search and affordability assessment.
  • All supporting documentation is updated and resubmitted.
  • The case will be re-underwritten and must still be acceptable to us in line with our then prevailing mortgage lending policy and products.
  • A re-inspection of the property by the valuer (subject to a £100 fee).

All offer extensions must be requested by the acting solicitor or broker.

Other occupants

Any person over the age of 17 that will reside in the property after completion but will not be party to the mortgage, will need to be entered on the application in the 'other occupants' section. They will be required to complete a Deed of Consent to surrender interest in the property.

 

P

Part and Part

    Residential Mortgages

  • Maximum LTV 75%, the Interest Only element must not exceed 50% LTV.
  • Minimum Capital and Interest element £5,000.
  • Each part of the loan (Interest Only and Capital and Interest) must be a minimum of £5,000.
  • Fees added to the loan will be added to the capital and interest element of the loan.
  • Affordability will be calculated according to the repayment method selected.

The value of the repayment vehicle, at the time of application will need to cover the Interest Only loan amount (inclusive of any fees).

The repayment vehicle must be in pounds Sterling and for joint applications the vehicle can be owned jointly or in the individual names of each applicant.

A repayment vehicle that is owned with an individual that is not party to the mortgage will not be accepted.

We are able to consider the following repayment vehicles:

  • Sale of security property - subject to a minimum equity of £150,000 at the time of application, this will be determined by a full RICS valuation carried out as part of the application process.
  • Sale of additional property - the full property details including address, property type, number of bedrooms, estimated value and outstanding mortgage balance should be provided. An AVM will be used to validate the property value at the time of application. A Land Registry search will be undertaken to confirm ownership, although a Legal Charge will not be placed over any additional property used as a repayment vehicle.
  • Savings/Investments - Examples of acceptable savings/investments are:
    • Bank/Building society savings accounts;
    • ISAs including both Cash and Stocks & Shares ISAs;
    • Premium Bonds; and
    • Publicly listed UK Stocks and Shares (only shares listed on the FTSE Main Market and traded in Sterling are acceptable).

Evidence of the savings/investments will be required in the form of the most recent statement or share certificate (dated within the last 3 months).

  • Pension - occupational or private pensions are accepted. Final salary pension schemes will not be accepted. The most recent annual statement will be required to confirm the current value of the pension at the time of application.
  • We will require documentary evidence of all repayment vehicles in place, where applicable.

    Repayment vehicles must be in pounds Sterling.

Payday Loans

We can consider lending to applicants who have made use of payday loans, this will be assessed on a case by case basis.

Pension Income

Residential Mortgages

Residential Second Charge Loans

Residential Mortgages

Please see Income Sources for further details.

Residential Second Charge Loans

Please contact us directly for further information regarding pension income.

Porting

All our products are not portable.

Pre-emption

Precise Mortgages cannot consider remortgaging a property purchased under any scheme where a current pre-emption clause is in place or where the original vendor retains any interest in the property. Any pre-emption clause will need to have expired before an application is made.

Probate

Residential Mortgages

Where a property has been inherited, probate must have been granted prior to a mortgage application being made. Evidence of the Grant of Probate should be provided ahead of a Mortgage Offer being issued. Where the beneficiary is looking to capital raise on the property, the application should be submitted to us a remortgage and no minimum period of ownership will apply in these cases.

If the applicant is purchasing the property having being granted part of this in probate, we have no minimum period of ownership for the vendor.

Product Switching Fee

Residential Mortgages

If the applicant decides to change the product on the application after the mortgage product has been offered, a non-refundable administration fee of £70 is payable prior to the amended mortgage offer being issued.

Proof of address (POA/POR)

In all cases we will try to electronically verify the address history of the applicant. On occasion this may not be possible and we will require documentary evidence to verify the applicant's address history. We will need any document submitted to be correctly certified and be dated within the time period we have requested proof of address for. To see a full list of acceptable documents click here.

Click here to see our certification requirements.

Property

All properties must comprise of a single residential dwelling unit i.e. own living accommodation/kitchen/bathroom etc. Taking a single mortgage over a property converted into more than 1 unit is not accepted.

If the construction is non-traditional, contact us for acceptability. There are certain construction types we will not accept, click here for further details.

Properties built within the last 10 years must benefit from an acceptable warranty scheme. Please refer to The UK Finance Lenders handbook for the currently acceptable schemes: https://www.cml.org.uk/lenders-handbook/.

For details of unacceptable property types, click here.

Property Re-inspection

On occasion a re-inspection of the property may be required before or after an offer has been issued.

Where a re-inspection is necessary after the initial valuation is carried out, there will be a fee of £100.

 

R

Remortgage

Residential Mortgages

We accept remortgage applications where the original purchase or last remortgage date was over 12 months ago.

Repayment Methods

Residential Mortgages

Residential Second Charge Loans

Residential Mortgages

DMPs are acceptable providing they have been active for over 12 months and no payments have been missed.

  • Capital and Interest - the monthly payment will pay off some of the amount borrowed, every month, together with a payment of interest charged on the mortgage.
  • Interest Only - the monthly payment only covers the interest charged on the mortgage. At the end of the mortgage term, the customer will still owe the amount borrowed. The customer must be able to demonstrate that they have a clearly understood and credible repayment strategy which has the potential to repay the Interest Only mortgage balance at the end of the term.
  • Part and Part - with this option the Capital and Interest method applies to one part of the mortgage and the Interest Only option applies to the other part. Each part of the loan (Interest Only and Capital and Interest) must be a minimum of £5,000. The customer must be able to demonstrate that they have a clearly understood and credible repayment strategy which has the potential to repay the Interest Only balance at the end of term.

Affordability will be calculated according to the repayment method selected.

Residential Second Charge Loans

Capital and interest.

Repayment Vehicles

The value of the repayment vehicle, at the time of application will need to cover the Interest Only loan amount (inclusive of any fees).

The repayment vehicle must be in pounds Sterling and for joint applications the vehicle can be owned jointly or in the individual names of each applicant.

A repayment vehicle that is owned with an individual that is not party to the mortgage will not be accepted.

We are able to consider the following repayment vehicles:

  • Sale of security property - subject to a minimum equity of £150,000 at the time of application, this will be determined by a full RICS valuation carried out as part of the application process.
  • Sale of additional property - the full property details including address, property type, number of bedrooms, estimated value and outstanding mortgage balance should be provided. An AVM will be used to validate the property value at the time of application. A Land Registry search will be undertaken to confirm ownership, although a Legal Charge will not be placed over any additional property used as a repayment vehicle.
  • Savings/Investments - Examples of acceptable savings/investments are:
    • Bank/Building society savings accounts;
    • ISAs including both Cash and Stocks & Shares ISAs;
    • Premium Bonds; and
    • Publicly listed UK Stocks and Shares (only shares listed on the FTSE Main Market and traded in Sterling are acceptable).

Evidence of the savings/investments will be required in the form of the most recent statement or share certificate (dated within the last 3 months).

  • Pension - occupational or private pensions are accepted. Final salary pension schemes will not be accepted. The most recent annual statement will be required to confirm the current value of the pension at the time of application.

Residency

All UK and EEA nationals are acceptable providing they have a 3 year UK residential history. Non EEA Nationals must have been resident in the UK for the last 3 years and have permanent rights to reside in the UK.

Restrictive Covenants

We are unable to consider any property that may have a restricted occupancy clause within the planning permission, for example it can only be occupied for a maximum of 11 months in any one year. Property with unrestricted occupancy can be considered provided our normal requirements are met.

Similarly, property that can only be used for retirement or sheltered accommodation is not accepted. This is the same for any property where a planning restriction (e.g. agricultural restriction) effectively limits a property’s appeal on the open market.

Please note for New Builds, we do consider some Section 106 planning obligations.

Retentions

Retentions are not acceptable and lending will be based on the current value of the property, which must represent suitable security.

Right to Buy (RTB)

Residential Mortgages

Right to Buy (RTB) provides individuals with the opportunity to buy their social housing property at a discounted market price, providing they meet the scheme eligibility requirements. Visit https://righttobuy.gov.uk/ for more information on eligibility.

Our Right to Buy scheme is offered for house purchases in England only, please note flats are not acceptable.

We have products available at 90% and 100% of the discounted purchase price (plus lender fees). This is subject to the loan not exceeding 75% of the open market value of the property, as determined by one of our panel surveyors.

Only Right to Buy schemes operated by recognised local authorities/housing associations are acceptable. For Right to Buy applications our standard lending criteria applies in addition to the requirements detailed above. We cannot accept applications where the customer has been in receipt of Housing Benefit during the last 12 months.

Please note: we are unable to consider applicants with DMPs on our Right to Buy range.

 

S

Section 106 Planning Obligations

Residential Mortgages

Section 106 planning obligations are accepted as detailed below:

Financial obligations - are acceptable subject to the conveyancer confirming that the monies due under the agreement have been paid in full or an indemnity exists within the agreement to indemnify any successors in title for any liability to repay any monies due.

In kind obligations (e.g. provision of open space, recreation facilities, education facilities, transportation plans, etc.) - are acceptable.

Restrictions on who can purchase the property - where the property is subject to a restriction that only allows it to be purchased or occupied by someone living or working in a specified area this should be referred to us for individual consideration. Restrictions relating to purchasers being in housing need, not being able to afford to purchase on the open market or having income less than a certain amount are not acceptable.

Affordable housing - it is acceptable for a development to be subject to a requirement to provide a proportion of affordable housing.

For any other planning obligation, please contact us.

Self-employed

Where an applicant has a shareholding of 25% or over, or is responsible for the overall payment of their tax and national insurance, they will be classed as self-employed.

Applicants will need to have been trading for a minimum of 12 months and we will require income verification for the number of years’ income keyed onto our online application.

The following income will be accepted:

  • For sole traders - net profit.
  • For partnerships - the relevant share of the net profit.
  • For limited company directors - remuneration plus dividends.

Income verification will be required in all instances.

Specialist Reports

On some occasions we may require a specialist’s report for the property, these most commonly comprise of:

  • Timber and damp, electrical, trees, cavity wall tie;
  • Mining report (for long term lending these are obtained by the solicitors and a special condition is imposed at offer).

Any such reports should be prepared by a reputable firm and should be forwarded to us for review and referral to the valuer.

Solar Panels

We will consider a property that contains solar panels. If the roof space is leased to a solar panel company then we will require a Consent to Airspace. The conveyancing solicitor would need to review the lease, if there is anything within the lease that can have an effect on the security property then we may not be able to consider your application. This could be an overriding interest in the property, or they have a right to take these solar panels down at any time, as this may cause damage to the property if they choose to do this.

Structural Reports

In some instances a structural report may be requested by the surveyor.

Reports will only be accepted from members of the following bodies:

The report must be referred to the valuer for comment. If the report is not addressed to the applicant, written confirmation must be obtained from the originator that its contents may be relied upon by the applicant(s).

We will not lend on any property with either ongoing movement or where monitoring is required, where this is identified by either the valuer, or where evident in the structural engineer’s report.

Student Loans

Student loans should be included in an applicant's credit commitments to give an accurate affordability assessment. If these are added to the application at a later date the loan amount we are able to offer may be affected.

Studio Flats

  • Minimum floor area of 30m2
  • Must be self-contained with private facilities
  • Maximum LTV 70%
 

T

Tenure

Freehold - Acceptable for houses only. Freehold flats/maisonettes are not acceptable.

Leasehold - Minimum remaining lease term is 70 years at the time of application.

Flying Freehold - A property with an element of Flying Freehold can be considered providing it does not exceed 10% of the total area. The valuer must comment and confirm the total percentage.

Commonhold - Not acceptable.

If the title to the property is leasehold and the freehold title is owned by the applicant, a relative of the applicant or a limited company the applicant is a director/shareholder, Precise Mortgages will require a charge over both the freehold and the leasehold.

Term

Residential Mortgages

Residential Second Charge Loans

Residential Mortgages
  • Minimum term 5 years
  • Maximum term 35 years
Residential Second Charge Loans
  • Minimum term 3 years
  • Maximum term 35 years

U

UK Finance Disclosure of Incentives Form (DIF)

Residential Mortgages

The UK Finance Disclosure of Incentives Form (DIF) must be completed by home builders for all new home sales involving a mortgage. This document outlines all incentives involved in the transaction and we accept a maximum of 5% incentives on new build homes.

Unacceptable Deposit Sources

Residential Mortgages

The following forms of deposit/incentive are not acceptable:

  • Purchase from a company in which the applicant has an interest.
  • Ministry of Defence Loan - this differs from Forces Help to Buy.
  • Cryptocurrencies - any deposit sourced via cryptocurrencies e.g. bitcoins, is not accepted.

Please see Vendor’s deposit, family purchase, family gifted deposit and Help to Buy for further information on these scenarios.

Unacceptable Property Types

The following types of property are not considered acceptable:

  • Commercial Properties.
  • Coach houses.
  • Live/work units.
  • Click here for unacceptable construction types.
  • Any property affected by Japanese knotweed.
  • Any property deemed unsuitable security by the valuer.
  • Any property where there is ongoing movement/monitoring is required.
  • Property where material environmental hazards are present.
  • Property where saleability may be adversely affected by local planning or by an unsatisfactory mining search.
  • Property being purchased under any social housing schemes other than Right to Buy. We are unable to consider remortgaging any property purchased under any such scheme where the original vendor retains any interest or where any pre-emption clause remains.
  • A property that is affected by or within influencing distance of any significant factor which will have a negative impact on the property’s value or re-saleability (e.g. overhead pylons, sub stations, etc).
  • Property has been purchased from a company that the applicant has an interest in.
  • Property is subject to either a back-to-back or sub-sale agreement or subject to a Finder’s Fee.

Unencumbered

Residential Mortgages

Unencumbered properties do not have current mortgages or loans secured on them. When raising funds on an unencumbered property, applications should be submitted on a remortgage basis.

 

V

Validation

ID and Residency documents

If originals are not available, we are able to accept certified copies of any ID and Residency documents, subject to the following:

  • The documents must be certified by an independent professional; e.g. Broker (if FCA regulated), Solicitor, Accountant etc. and not by an applicant, guarantor or close relative.
  • All documents must be certified that the copy is ‘a true copy of the original’.
  • Where the document contains a photograph it must be certified as ‘a true likeness’ of the individual.
  • The name of the person and employer/firm certifying the documents must be clear.

Please refer to our Anti Money Laundering Guidelines for full details of our ID and Residency validation requirements.

Where a copy of an applicant’s ID documents have been obtained via a digital ID solution, we will require a copy of the customer’s digital report from one of the following companies:

  • Experian
  • Equifax
  • CallCredit
  • LexisNexis
  • TrustID
  • Onfido
  • GBGroup
Supporting Documents

If originals are not available, the following are acceptable subject to the documents being fully legible and the underwriter having no concerns in respect of authenticity:

  • Photocopies
  • Scanned images
  • Photographic images
  • Digital images

Precise Mortgages retains the right to request original documentation when considered appropriate.

Vendor’s Deposit/Discounted Purchase Price

Residential Mortgages

In all cases applicants are required to commit their own funds to the transaction. Any vendor deposit will be deducted from the lower of purchase price/valuation and lending will be based on the net figure.

Valuation

Residential Mortgages

Residential Second Charge Loans

Residential Mortgages

All applications will require a standard valuation to be instructed by Precise Mortgages. The valuation will be instructed following our initial assessment once we are satisfied with the information we have received at that point, if you want to place the valuation on hold for any reason you must notify us when you submit the application. If the valuation does not take place we are able to refund this fee.

click here for details of the fees involved.

For properties in Scotland, a re-typed can be accepted providing:

  • The Home Report was carried out within 28 days of the application submission date
  • The inspection was carried out by a valuer from our approved panel

Where we are able to use a re-type a fee of £100 is payable, however a full fee will be taken on application with the difference refunded once an acceptable report is received.

All valuations are subject to underwriter review.

Residential Second Charge Loans

We will look to use a desktop valuation (AVM) in all cases. If we are unable to use a desktop valuation we contact you with further details.

W

Working Abroad

We are able to consider lending to applicants that work abroad providing:

  • They spend the majority of the year in the UK
  • They are paid in pounds sterling
  • They pay UK tax

Applicants who work abroad will be considered on an individual basis and be subject to the underwriter assessment.

 

Z

Zero Hours Contracts

Zero hour contracts are only permitted when the secondary applicant (i.e. not the main income earner) is employed on this basis. Payslips covering the last 6 months and the latest P60 are required. Eligible income is the lower of the average pay from the last 3 months / last 6 months.

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

What's New

Document Downloads

  • HMO now available in Scotland
  • Top slicing now available across our entire Buy to Let range (excludes first time buyers)
  • Improved! Only two simple forms required for Portfolio Landlords

A

Accountant Qualifications

We are able to consider accounts prepared by accountants with the following qualifications: ACA/FCA, CA, ACCA/FCCA, AAPA/FAPA, CIMA and CIPFA. We will need to be able to verify this qualification in order to consider the accounts provided.

Adverse Credit

As a guide our maximum adverse allowed is:

Buy to Let Mortgages

Second Charge Loans

Buy to Let Mortgages

Defaults: 0 in 12 months, no more than 2 in 24 months
CCJs: 0 in 12 months, no more than 1 in 24 months (max £2,500)
Mortgage arrears: 0 in 12 months, no more than 1 in 36 months (worst status)
IVA and bankruptcy: Must have been discharged for 6 years
Repossessions: Are not accepted
Debt Management Plans: Are not accepted

Please be aware that further restrictions may apply, depending on the product chosen. See relevant product guide for further details.

Buy to Let Second Charge Loans

Unsecured arrears: 0 in 36 months
Defaults: 0 in 72 months
CCJs: 0 in 72 months
Mortgage arrears: 0 in 36 months
IVA and bankruptcy: Are not accepted
Repossessions: Are not accepted
Debt Management Plans: Are not accepted

Please be aware that further restrictions may apply, depending on the product chosen. See relevant product guide for further details.

Age

Minimum age: 21
Maximum age: 80 at the date of application
First time buyers maximum age: 70 at the end of the mortgage term, we can consider extending this to a maximum age of 75 providing this does not exceed any known retirement date.

Agency Workers

Unfortunately we are unable to accept applicants who are currently employed by an employment agency.

Annexe

We may consider properties where a 'granny annexe' is present. However, we must be able to establish that the annexe does not benefit from its own facilities (self-contained) and will not be occupied independantly of the main property. Suitability of the property will be subject to underwriter review and valuer's comments.

Annual Bonus

An annual bonus can be included as part of a customer’s total income providing this is regular and two years' verification can be provided. Please note that we will only include 50% of any bonus in our affordability assessment, however the full amount should be keyed in the online application.

B

Builder’s Second Charge

Buy to Let Mortgages

A Builder’s Second Charge is acceptable providing the customer has a 15% deposit from their own funds. Repayments will be taken in to account for affordability.

Building Warranty

New Build properties and properties less than 10 years old will need to benefit from an acceptable building warranty provided by one of the following:

  • Advantage HCI
  • Aedis Warranties Ltd
  • Building Life Plans
  • Buildzone
  • Checkmate (Castle 10)
  • International Construction Warranties (ICW)
  • LABC
  • N.H.B.C. Guarantee
  • Premier Guarantee Scheme
  • Professional Consultants Certificate (previously an Architect’s Certificate). The issuing architect should have minimum professional indemnity insurance equivalent to the greater of £500,000 or the property value.
  • Protek
  • The Q Policy
  • Zurich Municipal New build

Please note: we are unable to accept retrospective building warranties.

C

Capital raising

We will consider capital raising on all remortgage and second charge loan applications. The amount and purpose of the capital raising should be provided on the application. Please note we will not accept capital raising for speculative investments such as purchasing cryptocurrencies, e.g. bitcoins.

Certification

Where certified documents are required in support of an application, they should be certified by a suitable representative of the introducing broker or intermediary company. The certification will need to clearly show the following:

  • The company name
  • The certifier’s name and their position within the company
  • The certifier’s signature
  • The date

Documents containing a photograph of the applicant will need to be certified as ‘true copy of the original’ and ‘true likeness of the applicant’ (unless the applicant has not been seen face to face).

ID and residency documents must be certified individually, for further details please see our Anti Money Laundering Guidelines.

Click here to download a copy of our Document Submission form.

For more information on our validation requirements for supporting documents, click here.

CIS Contractor

Applicants working in construction as a Construction Industry Scheme (CIS) contractor are acceptable and will be treated as self-employed and the relevant income verification will be required.

Commercial Property

We are unable to consider any property where commercial usage exceeds 20%.

Flats above or adjacent to commercial premises may be considered on an individual basis.

Home office usage is acceptable providing that this does not involve clients being seen on the premises on a regular basis.

For any other form of commercial usage, please contact us for further information.

Construction

We accept properties of traditional and Modern Methods of Construction (MMC).

The following methods of construction are not acceptable:

  • Any property of Easiform construction.
  • Any property containing mundic concrete.
  • Any property containing no-fines concrete.
  • Flats or maisonettes in blocks exceeding 20 storeys.
  • Grade 1 listed buildings in England and Wales / Grades A and B in Scotland.
  • Mobile homes and houseboats.
  • Properties constructed with high-alumina cement, timber framed property with no brick skin or 100% steel or timber framed property. This does not include high rise developments.
  • Property designated defective under Part XVI Housing Act 1985, Housing (Scotland) Act 1987 or Pre-Cast Reinforced Concrete (PRC) property (irrespective of whether repaired under a licence repair scheme).

Consumer Buy to Let (CBTL)

A consumer buy to let is not entered into predominately for the purposes of a business investment. These are usually inherited properties or properties where the applicant/family previously lived. We accept consumer buy to lets across our buy to let range. Please note, brokers will need to be registered with the FCA as a CBTL Intermediary (Arranger and Advisor) prior to placing an application with us.

Contractors

We will accept general contractors, CIS contractors and applicants employed on a fixed term contract. In all instances, where an applicant is responsible for paying their own tax or national insurance they will be classed as Self-employed and the relevant income verification will be required. If an applicant is employed on a fixed term contract that has less than 6 months remaining, we will require written confirmation from the employer stating their intention to renew the contract.

Criminal convictions

A mortgage application cannot be considered before a criminal conviction is spent. Please contact us directly to discuss the time limits of spent convictions.

D

Day of Completion

Our customers are expected to be in the UK on the day of completion. If they are not we may delay release of funds pending further enquiries.

Debt Consolidation

We will accept applications where there is an element of capital raising for debt consolidation. We will require a fully completed debt consolidation form and where affordability is dependant on these debts being repaid, there will be a condition added to the offer. Please note for buy to let applications where capital is being raised for debt consolidation, brokers will need Credit Broking and Debt Counselling permissions registered with the FCA.

Deposit

Acceptable deposit sources

The deposit should come from the applicant’s own resources and have originated within the EEA without recourse to additional borrowing. We will also accept the following sources of deposit:

  • Family gifts
  • Remortgage or secured loan on an existing property owned by the applicant
  • Builder’s Second Charge
  • Unacceptable deposit sources

    The following forms of deposit/incentive are not acceptable:

  • Help to Buy.
  • Builder’s deposit - where the builder is offering any cash-based incentive (rather than a Builder’s second charge) e.g. discounted purchase price, stamp duty paid, legal fees paid, cash back after completion, mortgage paid etc. this will be deducted from the lower of the purchase price/valuation, and LTV will be calculated on the net figure.
  • Purchase from a company in which the applicant has an interest.
  • Forces Help to Buy.
  • Ministry of Defence Loan.
  • Cryptocurrencies - any deposit sourced via cryptocurrencies e.g. bitcoins, is not accepted.
  • Please see Vendor’s deposit, family purchase, family gifted deposit and Help to Buy for further information on these scenarios.

Diplomatic Immunity

Applicants with diplomatic immunity from UK law will not be accepted.

E

Employed by family

Where an applicant is employed by a family member we will require a letter from the company's accountant addressed to Precise detailing the applicant's job title, role, salary, and length of time with the company. This is in addition to our standard and income verification requirements.

Employment

Employed

Applicants must be in permanent employment that is not subject to a current probationary period. Applicants must have been in their current job for a minimum of 3 months with 12 months continuous employment.

Applicants on a fixed term contract basis are acceptable but if there is less than 6 months remaining on the contract confirmation of renewal may be required.

Agency workers are not acceptable.

Where an applicant has a shareholding of 25% or over, or is responsible for overall payment of their tax and National Insurance, they will be classed as self-employed.

For applicants on a zero hours contract click here for more information.

Self-employed

Applicants will need to have been trading for a minimum of 12 months and we will require income verification for the number of years’ income keyed onto our online application.

The following income will be accepted:

  • For sole traders - net profit.
  • For partnerships - the relevant share of the net profit.
  • For limited company directors - remuneration plus dividends.

Ex-local Authority Flats

Ex-local authority flats or maisonettes may be considered providing they do not contain deck access. The block should be predominantly privately owned and will be subject to an individual underwriter review.

F

Family Gifted Deposit

Buy to Let Mortgages

A family gift is an acceptable source of deposit unless the property is being purchased from the family member who is providing the gift. We will require a fully completed Gifted Deposit Form, click here to download a copy.

Where the property is being purchased from a family member at a discounted price, this is acceptable providing the family member will not continue to reside. Our lending and assessment of the maximum LTV will be based on the reduced price and the vendor relinquishing all rights to the property. The applicant must commit their own funds to the transaction.

Gifted deposits will not be accepted from anyone that will reside in and/or have an interest in the property but will not be party to the mortgage.

Family Lets

We are unable to lend on a property where new or existing tenants are related to the applicant.

Family Purchase

Buy to Let Mortgages

We will consider applications where the property is being purchased from a family member. A discounted purchase price is acceptable providing the family member will not continue to reside. Our lending and assessment of the maximum LTV will be based on the reduced price and the vendor relinquishing all rights to the property. The applicant(s) must commit their own funds to the transaction.

First Time Buyer (FTB) Landlords

Buy to Let Mortgages

  • Maximum LTV: 75%
  • Maximum age: 70 at the end of the mortgage term, we may consider extending this to a maximum of 75 providing this does not exceed any known retirement date.
  • All applicants need to be first time buyers or not have owned a property within the last 18 months. If any applicant is not classed as a first time buyer our standard Buy to Let criteria will apply.
  • The property will need to meet our minimum ICR. Click here to access our Buy to Let calculator for further guidance.
  • We will complete an assessment of the applicant’s income at full application stage. Earned income should be sufficient to meet the loan amount requested as with a Residential mortgage application. Income can be entered onto the application for all applicants and this will be included in the assessment, subject to the underwriter’s discretion.
  • Income verification and the latest 3 months bank statements will be required for all applicants.
  • For Limited Company applications where all guarantors are first time buyers, please contact 0800 116 4385.
  • Unfortunately, we do not allow first time buyer landlords to apply for top slicing, HMO, Multi-Unit and Holiday Let applications.

Five Year Fixed Rate Requirements

If a customer has chosen a 5 year+ fixed rate mortgage extra checks will be required when the LTV is greater than 60% and the minimum ICR is not met at an interest rate of 5.5%, the customer will need to demonstrate one of the following:

Substantial Net worth – We will look to verify that a customer has substantial net worth in fixed assets, such as property. This will typically be in the form of at least £250,000 equity in their residential home or at least £500,000 across equity in their residential home and a property investment portfolio. A fully completed Existing Property Portfolio Form will be required.

OR

Satisfactory level of Liquid assets – Forms of liquid assets could include (but is not limited to): Cash deposits in savings or investment accounts, ISAs, PEPs, Investment Bonds and publicly listed Stocks & Shares. A fully completed 5 year + Fixed rate assets & liabilities statement together with supporting validation demonstrating a sufficient level of assets will be required. Please note where cash gifts form part of the liquid assets, the gifts must have been received by the applicant at least 3 months prior to the application.

OR

Excess disposable income – We will require evidence of the customer’s income e.g. latest payslip or P60 for PAYE, latest tax calculation PLUS corresponding tax year overview or latest set of accounts for self-employed customers. The customer must have sufficient validated excess disposable income to cover the difference between the monthly interest payment at the fixed pay rate and at a rate of 5.5%.

Flats/Maisonettes/Apartments

  • Must be self-contained with private facilities.
  • Must have direct access to the highway via covered common parts.
  • Up to a maximum of 20 storeys.
  • Minimum floor area 30m2.

Flats above or adjacent to commercial premises may be considered on an individual basis.

Click here for details of Ex-local authority flats.

Studio flats are acceptable, click here for further details.

Flying Freehold

A property with an element of Flying Freehold can be considered providing it does not exceed 10% of the total area.

Foster carers

We can consider lending to foster carers on a case by case basis. Proof of income will be required in all instances in line with our self-employed and income verification requirements.

Freehold

Freehold is unacceptable for flats/maisonettes with the exception of Multi-Unit properties. If the applicant is the sole owner of the freehold to a building that contains the leasehold flat, Precise Mortgages will take a charge over both the freehold and the leasehold.

Funds Release

Our customers are expected to be in the UK on the day of completion. If they are not we may delay release of funds pending further enquiries.

G

General Data Protection Regulation (GDPR)

As part of GDPR it is important that all customers and intermediaries are aware of how we use personal data, please select the relevant Privacy Notice below for further details:

Guarantors

Mortgage guarantors are not acceptable on personal ownership applications.

For Limited Company applications all company Directors and shareholders over the age of 21 are required to provide a Personal Guarantee for the mortgage. The directors/shareholders added to the application must match to those registered with Companies House.

H

Holiday Let

Applicant

  • Available to experienced landlords- applicants must have held a buy to let property for at least 12 months prior to an application being made.
  • Minimum personal earner or pension annual income of £40,000 required for the main applicant and income verification will be required in all cases.
  • Available for personal ownership and Limited Company applications.

Loan

  • Tier 1 only.
  • Maximum loan amount - £500,000.
  • Maximum LTV - 70%.
  • Rental will be assessed according to our standard ICR calculations. The property valuation report will include a standard buy to let rental figure based on the property being let on a 6 month AST basis. This will be the only figure we are able to use to make a rental assessment.

Property

  • Minimum property value- £150,000 in London, £50,000 elsewhere.
  • The property can be a fully furnished house or flat, including studio flats.
  • The property must be an established holiday let (previously let as a holiday let) and we must be able to evidence that it is advertised as such. The URL link to the property advertisement will need to be provided on the online application. Advertising on social media is accepted where the property is also advertised on a formal letting website. Any properties advertised via Airbnb or selling sites will not be accepted.
  • Properties located on a holiday park/village or that share communal facilities with other properties are not acceptable (this includes swimming pool and gym facilities). We are also unable to consider serviced apartments.
  • The property must not have planning or occupancy restrictions.
  • New build, Multi-Unit and HMO properties will not be accepted as holiday lets.

Houses in Multiple Occupation (HMO)

Buy to Let Mortgages

The definition of a HMO is as follows:

  • In England and Wales where there are at least 3 tenants who form more than one household and the tenants share toilet, bathroom or kitchen facilities.
  • In Scotland where there are at least 3 unrelated tenants forming 3 or more households and the tenants share toilet, bathroom or kitchen facilities.

Where the property meets the above definitions the application must be submitted as an HMO on an appropriate product.

Applicant

  • Available to experienced landlords - applicants must have held a buy to let property for at least 12 months prior to an application being made.
  • Available for Personal ownership and Limited Company applications.

Loan

  • Tier 1 and 2.
  • Maximum loan amount - £1,000,000.
  • Maximum LTV - 80% up to £500,000, 75% up to £750,000, 70% up to £1,000,000, portfolio lending limits will also apply.
  • Rental will be assessed according to our standard ICR calculations.

Property

  • Minimum valuation - £250,000 in London and £100,000 elsewhere. The capital valuation will be assessed on a comparable residential basis.
  • Available in England, Wales and eligible postcodes in Scotland.
  • Maximum bedrooms - 8.
  • Where applicable, an application for any HMO Licence required by the Local Authority must have been made prior to completion.
  • The terms of the licence must be complied with at all times.
  • Precise Mortgages reserve the right to request proof of a licence throughout the term of the mortgage.

Housing Benefit

We are unable to accept applications where any of the applicants have been in receipt of housing benefit in the last 12 months.

I

Identification (ID)

In all cases we will try to electronically verify the identity of the applicant. On occasion this is not possible and we will require certified documentary evidence to satisfy our requirements. The documentation you need to provide to us is detailed in our Anti-money laundering guidelines.

Income Sources

The following are acceptable sources of income:

Employed

Income type Proportion allowable in calculation
Basic salary 100%
Shift allowance 100%
Large town allowance 100%
Childcare payments 100%
Mortgage subsidy 100%
Car allowance 100%
Overtime/bonus/commission 50%* (if regular/"guaranteed")

*Full amount should be keyed into the application.

Self-employed

  • For sole traders - net profit.
  • For partnerships - their share of the net profit.
  • For limited company directors - remunerations plus dividends.

The following can be included as income where evidence is available:

  • Sole traders/partnerships:
    • Private pension payments where declared on the tax calculations.
  • Directors (owns 25% or more shares)
    • Director's car allowance.
    • Director's pension payment.

Additional income

Source Amount eligible Criteria
Tax credits 100%
  • Current Inland Revenue documentation
  • Must have a minimum of 3 years left to run (based on ages of children)
Maintenance 50%*
  • Must be via a court order
  • Must have a minimum of 3 years left to run
Permanent second job Maximum 50%
  • Position held for more than 12 months
  • Should be a permanent position
  • Confirmation that the hours worked are sustainable
Pension income 100%
  • Confirmed personal or occupational pension can be included

*Full amount should be keyed into the online application, not 50% of the full amount.

Income Verification

Buy to Let Mortgages

Buy to Let Second Charge Loans

Buy to Let Mortgages

Employed

The latest 3 months' payslips and latest P60 document (the latest 2 years' P60 will be required if an annual bonus is included).

Self-employed

1 year's tax calculations and HMRC Tax Year Overviews or accounts (we only accept accounts prepared by accountants with the following qualifications: ACA/FCA, CA, ACCA/FCCA, AAPA/FAPA, CIMA, CIPFA).

In some cases 2 years' income verification is required (SA302s will be accepted as verification for previous years). Please see our Buy to Let Criteria Guide or Buy to Let Second Charge Criteria Guide for more details).

Buy to Let Second Charge Loans

Employed

The latest 2 months’ or latest 3 weeks payslips and P60 document.

Self-employed

The latest 1 year's tax calculation plus the corresponding Tax Year overview or accounts.

In some cases 2 years' income verification is required (SA302s will be accepted as verification for previous years). Please see our Buy to Let Criteria Guide or Buy to Let Second Charge Criteria Guide for more details).

Inherited Property

Where a property has been inherited, probate must have been granted prior to a mortgage application being made. Evidence of the Grant of Probate should be provided ahead of a Mortgage Offer being issued. Where the beneficiary is looking to capital raise on the property, the application should be submitted to us as a remortgage and no minimum period of ownership will apply in these cases.

If the applicant is purchasing the property after being granted part of this in probate, we have no minimum period of ownership for the vendor.

Interest Coverage Ratio (ICR)

Buy to Let Mortgages

Buy to Let Second Charge Loans

Buy to Let Mortgages

The rent achieved by the property needs to be sufficient to meet the minimum interest cover requirements determined by the applicant’s tax band as follows:

Tax band* Minimum ICR rate
Basic rate 125%
Higher rate 145%
Additional rate 160%
Limited companies 125%
Bespoke ICR 125%-160%

*The customer’s tax band should be based on all validated current income plus gross rental income (excluding any deductions) from all rental properties, including the security.

The interest rate used in the ICR calculation is determined by the selected product as follows:

  • Tracker – The higher of pay rate +2%, or revert rate, at a minimum of 5.5%.
  • Short term Fixed rate – The higher of pay rate +2%, or revert rate, at a minimum of 5.5%.
  • 5yr+ Fixed rate – The initial pay rate, additional underwriting may be required click here for further details.

As part of our application process we will apply a Bespoke ICR to the application which can be useful when:

  • Rental income from the property being purchased moves the applicant into a higher tax band;
  • Joint applicants are in different tax bands;
  • Joint ownership is set up as tenants in common with unequal shares in the property.

As a guide the minimum ICR rates are shown in the table above.

We are able to consider using an applicant’s income in support of the requested loan amount providing they meet our qualifying criteria, click here for further details.

Where rental income is not sufficient to meet the minimum interest cover requirements using rental income alone or in combination with excess disposable income, Precise Mortgages may reduce the loan amount accordingly.

Buy to Let Second Charge Loans

The applicant’s income tax band will determine the Interest Coverage Ratio (ICR) applicable to the application. Where there are joint applicants with different income tax bands, the higher tax band will apply. The monthly rent should cover the existing first mortgage repayment and the proposed second charge loan repayment by the amount of the ICR at the applicable assessment rate which can be confirmed by the Underwriter.

Tax Band* ICR rate
Basic rate 125%
Higher rate 145%
Additional rate 160%

*Where there are joint applicants with different income tax bands, the higher tax band will be applicable.

If the requested loan amount is not available based only on the ICR calculation, Precise Mortgages will consider utilising earned income to support the requested loan amount.

L

Leasehold

The minimum remaining lease term must be 70 years at the time of application.

Let to Buy (LTB)

Buy to Let Mortgages

Let to Buy situations may be considered up to a maximum of 80% LTV. Where the customer is raising funds on their existing residential property, then there must be a concurrent purchase of a new residential property and we will require evidence of this.

The remortgage and purchase must complete simultaneously.

Limited Company

Buy to Let Mortgages

Precise Mortgages will consider lending to business applicants providing they meet the following criteria:

  • Must be a registered Limited Company set up with the specific purpose of buying property (SPVs);
  • The business must have a UK registered address and must operate entirely within the UK;
  • Each business must have a maximum of 4 directors/shareholders none of which may be another Limited Company.
  • Maximum term 35 years (maximum guarantor/director age at application 80 years).
  • Maximum of 20 buy to let loans per individual (including buy to let loans which the individual has guaranteed), with Precise Mortgages up to a combined value of £10,000,000.

The company should have one of the following SIC codes (Standard Industrial Classification) set up at incorporation:

  • 68100 - Buying and selling of own real estate
  • 68209 - Other letting and operating of own or leased real estate
  • 68320 - Management of real estate on a fee or contract basis

In all applications, Personal Guarantees will be required for all Directors. Additionally, all shareholders over the age of 21 will be required to provide a Personal Guarantee for which we require them to have obtained independent legal advice. There is no limit on the number of shareholders under the age of 21 subject to the shareholders being dependants of the Directors.

Limited Company Legal Advice

Buy to Let Mortgages

Limited company applications will require all directors/shareholder’s to provide a Personal Guarantee for which we require them to have obtained independent legal advice.

Legal advice can be obtained from an independent solicitor or from the same firm that are undertaking the conveyancing on the application, however the same person/s within the firm should not provide independent legal advice as well as completing the conveyancing.

Obtaining legal advice may incur additional costs for the customer and they should contact the acting conveyancer for details of this.

Loan amount

Buy to Let Mortgages

Buy to Let Second Charge Loans

Buy to Let Mortgages

Minimum loan: £25,001 (unless otherwise stated, please see the relevant product guide).
Maximum loan: £3,000,000 subject to product restrictions (see product guides for full details).
Maximum loan size in Scotland: £1,000,000

Holiday Let: maximum loan size £500,000

Multi-Unit: maximum loan size £1,000,000

Individual products may have further loan restrictions, please see the relevant product guide for further details.

Buy to Let Second Charge Loans

Minimum loan:£10,000
Maximum loan:£1,000,000 (on referral)

LTV Limits

Precise Mortgages calculates the loan to value based on the lower of the purchase price or the property value as determined by the valuer. The maximum loan size will vary by product; please check the relevant product guide for further information, and click here for the maximum LTV applicable to mortgages secured on HMOs. LTV limits are based on the net loan amount exclusive of any fees.

Buy to Let Mortgages

Buy to Let Second Charge Loans

Buy to Let Mortgages
Loan amount Up to 5 apps 6 to 10 apps 11 to 20 apps
Up to £500,000 80% 75% 70%
Up to £750,000 75% 75% 70%
Up to £1,000,000 70% 70% 70%
Up to £3,000,000 60% 60% 60%
  • Let to Buy - maximum LTV 80%
  • First Time Buyers maximum LTV 75% (dependent on specific product limits)
  • Studio flats - maximum LTV 70%
  • Multi-Units - maximum LTV 70% up to £1,000,000 or 75% up to £750,000
  • Holiday Lets - maximum LTV 70%
Buy to Let Second Charge Loans
Loans up to £100,000 80%
Loans up to £250,000 75%

Location

Buy to Let Mortgages

Buy to Let Second Charge Loans

Buy to Let Mortgages

Properties located in mainland England, Wales and selected postcodes in Scotland are acceptable. The list below shows the Scottish postcodes we accept:

  • Tayside DD - All
  • Lothian EH - All
  • Stirlingshire FK - All
  • Glasgow G - All
  • Ayrshire KA - All mainland
  • Fife KY - All
  • Lanarkshire ML - All
  • Renfrewshire & Argyll PA - PA1 to PA19
Buy to Let Second Charge Loans

Properties in mainland England and Wales are acceptable.

M

Maternity Leave

Applicants on maternity leave are acceptable providing they will return to work on the same terms of employment. We will require a letter from the employer confirming the applicant's salary and working hours before commencing maternity leave, the return to work date, salary and working hours after returning to work and whether there are any changes to the applicant's contract of employment. This should be addressed to Precise Mortgages.

Minimum Income

But to Let Mortgages

Buy to Let Second Charge Loans

Buy to Let Mortgages

There is no minimum income requirement for buy to let applications below £1,000,000.

For loans above £1,000,000 we will require a minimum income of £100,000 from a sole source and proof of income must be provided.

If excess earned income is used to support an application this must be of a sufficient level to meet the applicant’s current commitments as well as any rental shortfall on the property.

Buy to Let Second Charge Loans

We have no minimum income requirements however, if excess earned income is used to support an application this must be of a sufficient level to meet the applicant’s current commitments as well as any rental shortfall on the property.

Minimum Ownership

We will accept remortgage applications 6 months after either the original purchase date or the last remortgage date.

Precise Mortgages’ bridging borrowers can remortgage on to a Precise Mortgages Buy to Let product after 1 month.

For probate cases, no minimum period of ownership will apply.

Minimum Property Value

Minimum value or purchase price is £50,000, or £150,000 in London postcode districts.

HMO minimum value £100,000, or £250,000 in London.

Holiday Let minimum value £250,000 in London, £100,000 elsewhere.

Modern Methods of Construction (MMC)

Properties that have any MMC components can be considered providing the property was constructed by one of the following companies:

  • Barratt Developments
  • Bellway
  • Berkeley
  • Bloor Homes
  • Bovis Homes
  • CALA Homes
  • Crest Nicholson
  • Galliford Try
  • Persimmon
  • Redrow
  • Taylor Wimpey

Multi-Unit (MUBs)

A Multi-Unit property is a single structure that contains separate self-contained units or flats that are held on a single freehold title. Each unit must be completely self-contained and meet our property criteria in its own right- including minimum valuation and ICR calculations.

Applicant:

  • Experienced landlords only.
  • Available for Personal ownership and Limited Company applications.

Loan:

  • Tier 1 only.
  • Maximum LTV - 70% up to £1,000,000, 75% up to £750,000, portfolio lending restrictions may also apply.
  • Maximum loan amount- £1,000,000.
  • The loan and rental calculations will be based on an aggregate of the individual unit values and rental values provided on the valuation report. If the valuation or purchase price is lower than the aggregated values, our lending will be based on the lower figure.

Property:

  • Minimum valuation- £150,000 in London and £50,000 elsewhere (applies to each unit).
  • Minimum of 2 and maximum of 6 units within a single block, each unit must be entirely self-contained.
  • New build properties and properties defined as an HMO are not acceptable.
  • The property must be entirely on a freehold title, any property with separate leases will not be accepted.
  • Each unit must have a minimum floor area of 30m2.
  • Multiple houses held on one freehold title are not acceptable.
  • Holiday Lets are not acceptable.
  • Any adverse planning restrictions that could prevent the creation of leases are not acceptable.
  • Available for properties in England and Wales.

Please note: a Homebuyers Report will not be available for a Multi-unit property.

N

Nationality

All UK and EEA nationals are acceptable providing they have a 3 year UK residential history. Non EEA Nationals must have been resident in the UK for the last 3 years and have permanent right to reside in the UK.

New Build

Buy to Let Mortgages

  • Precise Mortgages define New Build as a property that has never been occupied.
  • Maximum 80% LTV accepted.
  • Borrowing is available on flats up to 20 storeys.
  • New builds flats with a commercial ground floor are considered.
  • Some Section 106 planning obligations are acceptable.
  • No reassignment of contracts.
  • An acceptable Building Warranty will be required, we are unable to accept retrospective warranties.
  • Any cash-based Builder’s incentive will not be acceptable, please see Unacceptable Deposit Sources for full details.

Please note: we are unable to consider New Build properties for Holiday Let or Multi-Unit applications.

NHS Bank Nursing

We are unable to consider applicants who are employed on a NHS Bank Nursing basis. Where an applicant is a permanent employee of the NHS but earns additional pay from NHS Bank Nursing, we will only include the primary earnings in our affordability assessment.

O

Offer Validity

Offers will be valid for 3 months from the valuation date. An offer extension may be considered (up to a maximum of 6 months from original valuation) on request from either a broker or a solicitor.

Buy to Let Mortgages

New Build offers will be valid for 6 months from the valuation date. An offer extension for a further 3 months can be considered subject to:

  • Confirmation of changes in circumstance are received in month 5 of the mortgage offer, before the expiry of the initial 6 month offer period.
  • A new credit search and affordability assessment.
  • All supporting documentation to be updated and resubmitted.
  • The case will be re-underwritten and must still be acceptable to us in line with our then prevailing mortgage lending policy and products.
  • A re-inspection of the property by the valuer (subject to a £100 fee).

All offer extensions must be requested by the acting solicitor or broker.

P

Payday Loans

We can consider lending to applicants who have made use of payday loans, this will be assessed on a case by case basis.

Pension Income

Buy to Let Mortgages

Buy to Let Second Charge Loans

Buy to Let Mortgages

Personal/occupational pension income can be considered as the sole source of income subject to a full review of the application.

Buy to Let Second Charge Loans

Please contact us directly for further information regarding pension income.

Portfolio Lending Limits

A single customer can have up to 20 individual Precise Mortgages buy to let loans (including buy to let second charge loans and mortgages they guarantee) with a maximum combined value of £10,000,000.

Unlimited with other lenders.

Portfolio criteria will be assessed at underwriting stage and as a result we may reduce the amount we will lend below that stated in any DIP to reflect our maximum LTV limits.

Portfolio Landlord

A portfolio landlord has 4 or more mortgaged buy to let properties or 3 mortgaged buy to let properties, plus at least 1 pending application with Precise Mortgages.

The following should be included in the number of properties a portfolio landlord holds:

  • All mortgaged buy to let properties owned by the applicant whether jointly, in their sole name or by a company of which they are a director or shareholder
  • Any property owned on a residential basis with Consent to Let
  • If the applicant is a limited company, properties owned by the company’s directors and shareholders, or owned by other companies of which the directors/shareholders are a shareholder or director.

Unencumbered properties do not need to be included but may strengthen the overall portfolio.

As part of our underwriting process we will make an assessment of an applicant’s portfolio based on their individual circumstances and taking into account the impact of future interest rate increases.

Please refer to the following links for further guidance:

Porting

All our products are not portable.

Pre-emption

Precise Mortgages cannot consider remortgaging a property purchased under any scheme where a current pre-emption clause is in place or where the original vendor retains any interest in the property. Any pre-emption clause will need to have expired before an application is made.

Product Switching Fee

Buy to Let Mortgages

If the applicant decides to change the product on the application after the mortgage product has been offered, a non-refundable administration fee of £70 is payable prior to the amended mortgage offer being issued.

Property

All properties must comprise of a single residential dwelling unit i.e. own living accommodation/kitchen/bathroom etc. Taking a single mortgage over a property converted into more than 1 unit is not accepted with the exception of Multi-Unit properties.

If the construction is non-traditional, contact us for acceptability. There are certain construction types we will not accept, click here for further details.

Properties built within the last 10 years must benefit from an acceptable warranty scheme. Please refer to The UK Finance Lenders handbook for the currently acceptable schemes: https://www.cml.org.uk/lenders-handbook/.

For details of unacceptable property types, click here.

Probate

Where a property has been inherited, probate must have been granted prior to a mortgage application being made. Evidence of the Grant of Probate should be provided ahead of a Mortgage Offer being issued. Where the beneficiary is looking to capital raise on the property, the application should be submitted to us a remortgage and no minimum period of ownership will apply in these cases.

If the applicant is purchasing the property having being granted part of this in probate, we have no minimum period of ownership for the vendor.

Proof of address (POA/POR)

In all cases we will try to electronically verify the address history of the applicant. On occasion this may not be possible and we will require documentary evidence to verify the applicant's address history. We will need any document submitted to be correctly certified and be dated within the time period we have requested proof of address for. To see a full list of acceptable documents click here.

Click here to see our certification requirements.

Property Re-inspection

Where a re-inspection is necessary after the initial valuation is carried out, there will be a fee of £100.

R

Refurbishment Buy to Let

Buy to Let Mortgages

Our Refurbishment Buy to Let product allows your customer to take advantage of the flexibility of Bridging Finance with the surety of an exit onto a Buy to Let Mortgage once the property has been refurbished (providing there is no change in circumstances and the property meets the expected valuation following refurbishment).

Our Refurbishment Buy to Let proposition is ideal for landlords who are looking to make changes to a property that can be completed within 6 months and which are either:

  • Light Refurbishment or,
  • works completed under Permitted Development Rights where there is no change to the footprint or structure of the property (categorised as heavy refurbishment).

Please note that projects that will take longer than 6 months to complete or for any other heavy refurbishment projects you should look to our standard Bridging proposition.

Bridging Finance Buy to Let Mortgages
Maximum LTV Up to 75% LTV Up to 80% LTV
Loan amount Min: £50,000
Max: Unlimited
Min: £25,001
Max: £3m (£1m HMO)
Minimum property value £50,000
(£100,000 in London)
HMOs £100,000
(£250,000 in London)
£50,000
(£150,000 in London)
HMOs £100,000
(£250,000 in London)

Each element of the loan should meet the relevant standard criteria. Customers must complete any refurbishment work within the buy to let offer validity period which will be 6 months from the valuation date.

Ideal for:

  • Properties needing works to meet the minimum EPC rating, such as boiler replacement.
  • Properties purchased at auction that require light refurbishment to be acceptable for mortgage purposes.
  • Landlords choosing to refurbish in order to maximise the rental yield of their property.

Click here to access our Refurbishment Buy to Let guide.

Please note, acceptance of the refurbishment project is subject to a full underwriter review to ensure it is in keeping with our Refurbishment Buy to Let product.

Remortgage

Buy to Let Mortgages

We will accept remortgage applications 6 months after either the original purchase date or the last remortgage date.

Precise Mortgages’ Bridging borrowers can remortgage on to a Precise Mortgages Buy to Let product after 1 month provided the underwriter is satisfied with the overall transaction, or this can be secured at the time of application by utilising our Refurbishment Buy to Let proposition.

Repayment Methods

Buy to Let Mortgages

Buy to Let Second Charge Loans

Buy to Let Mortgages
  • Capital and Interest (not available for top slicing)
  • Interest Only
Buy to Let Second Charge Loans
  • Capital and Interest (not available for top slicing)
  • Interest Only

Residency

All UK and EEA nationals are acceptable subject to a 3 year UK residential history. Non EEA Nationals must have been resident in the UK for the last 3 years and have permanent right to reside in the UK.

Restrictive Covenants

We are unable to consider any property that may have a restricted occupancy clause within the planning permission, for example a property that can only be occupied for a maximum of 11 months in any one year.

Similarly, properties that can only be used for retirement or sheltered accommodation is not acceptable. This is the same for any property where a planning restriction (e.g. agricultural restriction) effectively limits a property’s appeal on the open market.

Retentions

Retentions are not acceptable and lending will be based on the current value of the property, which must represent suitable security.

S

Section 106 Planning Obligations

Buy to Let Mortgages

Section 106 planning obligations are accepted as detailed below:

Financial obligations - are acceptable subject to the conveyancer confirming that the monies due under the agreement have been paid in full or an indemnity exists within the agreement to indemnify any successors in title for any liability to repay any monies due.

In kind obligations (e.g. provision of open space, recreation facilities, education facilities, transportation plans, etc.) - are acceptable.

Restrictions on who can purchase the property - where the property is subject to a restriction that only allows it to be purchased or occupied by someone living or working in a specified area this should be referred to us for individual consideration. Restrictions relating to purchasers being in housing need, not being able to afford to purchase on the open market or having income less than a certain amount are not acceptable.

Affordable housing - it is acceptable for a development to be subject to a requirement to provide a proportion of affordable housing.

For any other planning obligation, please contact us.

Self-employed

Where an applicant has a shareholding of 25% or over, or is responsible for the overall payment of their tax and national insurance, they will be classed as self-employed.

Applicants will need to have been trading for a minimum of 12 months and we will require income verification for the number of years’ income keyed onto our online application.

The following income will be accepted:

  • For sole traders - net profit.
  • For partnerships - the relevant share of the net profit.
  • For limited company directors - remuneration plus dividends.

Specialist Reports

On some occasions we may require a specialist’s report for the property, these most commonly comprise of:

  • Timber and damp, electrical, trees, cavity wall tie;
  • Mining report (for long term lending these are obtained by the solicitors and a special condition is imposed at offer).

Any such reports should be prepared by a reputable firm and should be forwarded to us for review and referral to the valuer.

Solar Panels

We will consider a property that contains solar panels. The conveyancing solicitor would need to review the lease, if there is anything within the lease that can have an effect on the security property then we may not be able to consider your application. This could be an overriding interest in the property, or they have a right to take these solar panels down at any time, as this may cause damage to the property if they choose to do this.

Structural Reports

The valuer may request a Structural Report for the property.

Where necessary the valuer may request a structural report, these will need to be produced by members of the following bodies:

The report must be referred to the valuer for comment. If the report is not addressed to the applicant, written confirmation must be obtained from the originator that its contents may be relied upon by the applicant(s).

We will not lend on any property with either ongoing movement or where monitoring is required where this is identified by either the valuer, or where evident in the structural engineer’s report.

Student Lets

We are able to consider student lets providing they meet our standard buy to let criteria. Properties similar to a Halls of Residence will not be accepted.

Student Loans

Student loans should be included in an applicant's credit commitments to give an accurate affordability assessment. If these are added to the application at a later date the loan amount we are able to offer may be affected.

Studio Flats

  • Minimum floor area of 30m2
  • Must be self-contained with private facilities
  • Maximum LTV 70%

T

Tenancy

Buy to Let Mortgages

Buy to Let Second Charge Loans

Buy to Let Mortgages

Properties in England and Wales must be let under a single assured shorthold tenancy or a common law tenancy (i.e. a company let or where the annual rent is greater than £100,000) up to a maximum of 36 months (with the exception of Holiday Lets).

Properties in Scotland must be let under a single short assured tenancy up to a maximum of 36 months.

Unacceptable tenancies: Tenancy agreements for tenants in the following categories are not acceptable:

  • Asylum seekers
  • Tenants who have the benefit of diplomatic immunity
  • Rental guarantee schemes

Where there are 3 or more tenants who form more than one household and share toilet, bathroom or kitchen facilities, HMO criteria will apply.

Please contact us for full details of unacceptable tenancies.

Buy to Let Second Charge Loans

Properties in England and Wales must be let under a single assured shorthold tenancy (up to a maximum of 36 months) or a common law tenancy (i.e. a company let or where the annual rent is greater than £100,000).

Unacceptable tenancies: Tenancy agreements for tenants in the following categories are not acceptable:

  • Multiple lets and HMOs are unacceptable. Precise Mortgages will refer to RICS guidelines when determining whether or not a property is a HMO
  • Asylum seekers
  • Students
  • Tenants who have the benefit of diplomatic immunity

Please contact us for full details of unacceptable tenancies.

Tenure

Freehold - Acceptable for houses only. Freehold flats/maisonettes are not acceptable.

Leasehold - Minimum remaining lease term is 70 years at the time of application.

Flying Freehold - A property with an element of Flying Freehold can be considered providing it does not exceed 10% of the total area. The valuer must comment and confirm the total percentage.

Commonhold - Not acceptable.

If the title to the property is leasehold and the freehold title is owned by the applicant, a relative of the applicant or a limited company the applicant is a director/shareholder, Precise Mortgages will require a charge over both the freehold and the leasehold.

Term

Buy to Let Mortgages

Buy to Let Second Charge Loans

Buy to Let Mortgages
  • Minimum term 5 years
  • Maximum term 35 years
Buy to Let Second Charge Loans
  • Minimum term 3 years
  • Maximum term 35 years

Top Slicing (also known as Income Supported Buy to Let)

Buy to Let Mortgages

Buy to Let Second Charge Loans

Buy to Let Mortgages

If the requested loan amount is not available because the rental income is not sufficient to meet our minimum ICR requirement, Precise Mortgages will consider using surplus income to support the requested loan amount (known as top slicing). All eligible applications will be given the option to use top slicing when selecting a product at DIP stage. If an applicant chooses to use top slicing to support a loan, additional validation will be required.

The following criteria will apply:

  • Improved! The extension and automation of top slicing across the entire Buy to Let Mortgage product range.
  • The rental income for the property must be a minimum of 110% of the payment when calculated at the pay rate of the chosen product. Surplus income from an applicant’s existing property portfolio (in the first instance) and/or surplus earned income can then be used to demonstrate affordability against the ICR required for the loan based on our current lending criteria at the assessment rate for the chosen product.
  • We can accept multiple applications that are utilising top slicing only where the parties to the loan are the same on each application.
  • The repayment method must be interest only.
  • There are no minimum income requirements but all income used for top slicing must be validated to the Precise Mortgages underwriter’s satisfaction.
  • All existing credit commitments will be taken into consideration when completing an affordability assessment.
  • We will look to use excess income from the applicant’s existing property portfolio to support the loan in the first instance. If the portfolio income is not sufficient then we can look to use excess earned income and income verification will be required.
  • Limited company applications: only the first two applicants will be included in the affordability assessment for top slicing. Therefore you should key the two highest earners first to improve access to a wider range of options.
  • If the application is a Let to buy, details of the new residential mortgage repayment amount, repayment type, interest rate and term will need to the entered onto the online application. We will require evidence of this by way of a mortgage offer prior to an offer being made by Precise Mortgages. If the exact details are not known at the time of application, our ability to offer top slicing on the buy to let application may be affected.
  • First time buyer landlords will not be offered the option to use top slicing.
Buy to Let Second Charge Loans

If the requested loan amount is not available based only on the ICR calculation, Precise Mortgages will consider utilising earned income to support the requested loan amount. This is subject to the applicant owning no more than 3 mortgaged buy to let properties (including the security). If this option is used, then the following criteria will apply:

  • The validated monthly rental income figure must be a minimum of 110% of the total actual monthly repayment (current mortgage plus the proposed second charge loan) for the security address.
  • All income will need to be validated to the Precise Mortgages underwriter’s satisfaction.
  • A minimum of 1 applicant must own their residential property.
  • The repayment method must be interest only.
  • The proposed loan must end before the 75th birthday, or declared retired age (whichever comes first) of all applicants whose income is required to support the loan.
  • All existing debt obligations (including court orders and CSA/maintenance/alimony commitments) will be taken into consideration as outgoings.
  • For the above reasons, it is therefore essential that all fields on the Decision in Principle form are completed accurately.

U

UK Finance Disclosure of Incentives Form (DIF)

The UK Finance Disclosure of Incentives Form (DIF) must be completed by home builders for all new home sales involving a mortgage. This document outlines all incentives involved in the transaction, please note we are unable to accept incentives on buy to let applications.

Unacceptable Property Types

The following types of property are not considered acceptable:

  • Commercial Properties.
  • Coach houses.
  • Live/work units.
  • Click here for unacceptable construction types.
  • Any property affected by Japanese knotweed.
  • Any property deemed unsuitable security by the valuer.
  • Any property where there is ongoing movement/monitoring is required.
  • Property where material environmental hazards are present.
  • Property where saleability may be adversely affected by local planning or by an unsatisfactory mining search.
  • Property being purchased under any social housing schemes other than Right to Buy. We are unable to consider remortgaging any property purchased under any such scheme where the original vendor retains any interest or where any pre-emption clause remains.
  • A property that is affected by or within influencing distance of any significant factor which will have a negative impact on the property’s value or re-saleability (e.g. overhead pylons, sub stations, etc).
  • Property has been purchased from a company that the applicant has an interest in.
  • Property is subject to either a back-to-back or sub-sale agreement or subject to a Finder’s Fee.

Unencumbered

Unencumbered properties do not have current mortgages or loans secured on them. When raising funds on an unencumbered property, applications should be submitted on a remortgage basis.

Unlicensed HMO

We can consider lending on unlicensed HMO properties, and where applicable, you should ensure the customer has made an application for a HMO license prior to submitting a case to us. The acting conveyancer should confirm the licensing status of the property.

Unacceptable Deposit Sources

The following forms of deposit/incentive are not acceptable:

  • Help to Buy.
  • Builder’s deposit - where the builder is offering any cash-based incentive (rather than a Builder’s second charge) e.g. discounted purchase price, stamp duty paid, legal fees paid, cash back after completion, mortgage paid etc. this will be deducted from the lower of the purchase price/valuation, and LTV will be calculated on the net figure.
  • Purchase from a company in which the applicant has an interest.
  • Forces Help to Buy.
  • Ministry of Defence Loan.
  • Cryptocurrencies - any deposit sourced via cryptocurrencies e.g. bitcoins, is not accepted.

Please see Vendor’s deposit, family purchase, and family gifted deposit for further information on these scenarios.

V

Validation

ID and Residency documents

If originals are not available, we are able to accept certified copies of any ID and Residency documents, subject to the following:

  • The documents must be certified by an independent professional; e.g. Broker (if FCA regulated), Solicitor, Accountant etc. and not by an applicant, guarantor or close relative.
  • All documents must be certified that the copy is ‘a true copy of the original’.
  • Where the document contains a photograph it must be certified as ‘a true likeness’ of the individual.
  • The name of the person and employer/firm certifying the documents must be clear.

Please refer to our Anti Money Laundering Guidelines for full details of our ID and Residency validation requirements.

Where a copy of an applicant’s ID documents have been obtained via a digital ID solution, we will require a copy of the customer’s digital report from one of the following companies:

  • Experian
  • Equifax
  • CallCredit
  • LexisNexis
  • TrustID
  • Onfido
  • GBGroup
Supporting Documents

If originals are not available, the following are acceptable subject to the documents being fully legible and the underwriter having no concerns in respect of authenticity:

  • Photocopies
  • Scanned images
  • Photographic images
  • Digital images

Precise Mortgages retains the right to request original documentation when considered appropriate.

Valuation

Buy to Let Mortgages

Buy to Let Second Charge Loans

Buy to Let Mortgages

All applications will require a standard valuation to be instructed by Precise Mortgages. The valuation will be instructed following our initial assessment once we are satisfied with the information we have received at that point, if you want to place the valuation on hold for any reason you must notify us when you submit the application. If the valuation does not take place we are able to refund this fee, but for all underwritten cases the £180 assessment fee is non-refundable.

Click here for details of the fees involved.

All valuations are subject to underwriter review.

Buy to Let Second Charge Loans

We will look to use a desktop valuation (AVM) in all cases. If we are unable to use a desktop valuation we contact you with further details.

Vendor’s Deposit/Discounted Purchase Price

In all cases applicants are required to commit their own funds to the transaction. Any vendor deposit will be deducted from the lower of purchase price/valuation and lending will be based on the net figure.

W

Working Abroad

We are able to consider lending to applicants that work abroad providing:

  • They spend the majority of the year in the UK
  • They are paid in pounds sterling
  • They pay UK tax

Applicants who work abroad will be considered on an individual basis and be subject to the underwriter assessment.

Z

Zero Hours Contracts

Zero hour contracts are only permitted when the secondary applicant (i.e. not the main income earner) is employed on this basis. Payslips covering the last 6 months and the latest P60 are required. Eligible income is the lower of the average pay from the last 3 months / last 6 months.

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

What's New

Document Downloads

  • HMO now available in Scotland
  • Works under selected Permitted Development Rights considered on Refurbishment Buy to Let
  • Maximise rental yield and increase capital value with Refurbishment Buy to Let.

A

Adverse Credit

The following limits normally apply for Bridging finance applications:

Adverse Credit Allowable Limit
Missed Mortgage Payments 0 in 36 months
Missed Secured Loan Payments 0 in 36 months
Unsecured Arrears 1 in 12 months, 2 in 36 months
CCJs Nil (3 year history)
Defaults Nil (3 year history)
Bankruptcy Nil (6 year history)
IVA Nil (6 year history)
Repossession Nil (6 year history)
Debt Management Programme Nil (6 year history)

Please contact us for further guidance if you have an application that may fall outside these guidelines.

Age

Minimum age: 25 at application.

Maximum age:

  • 75 at the end of term for Regulated bridging finance.
  • 80 at the date of application for Refurbishment Buy to Let.
  • 85 at the end of term for Non-Regulated bridging finance.

We can consider lending outside of the above limits subject to underwriter review, please contact us for further details.

Assets And Liabilities Statement

This is required on all applications, click here to download a copy.

The statement should be signed by the applicant/guarantor or their accountant.

Automated Valuations (AVMs)

We will aim to use an AVM where possible for standard bridging finance providing:

  • The purchase price/property value does not exceed £1,000,000.
  • The loan has a gross LTV of 50% or below. When multiple properties are used as security, an AVM can be used for each property where the overall LTV is 50% or below.
  • The AVM achieves an acceptable confidence level as determined by Rightmove.

We will notify you at DIP stage if your application qualifies for an AVM. If an AVM cannot be used a physical valuation will be required.

AVMs are not available for:

  • HMOs
  • Holiday Let
  • Multi-Units
  • Any property requiring an element of refurbishment.

B

Bridge To Let

Where an applicant needs to complete work on a property before renting it out, we are able to consider a bridge to let. The buy to let mortgage can be applied for at the same time as the bridge or after refurbishment works are completed.

Click here for details of our Buy to Let mortgage range.

Bridging Process

For information on our Bridging finance process click here.

If the applicant requires urgent bridging finance, click here for further information.

Building Warranty

If the property was constructed within the last 10 years it will need to benefit from one of the following warranties:

  • Advantage HCI
  • Aedis Warranties Ltd
  • Building Life Plans
  • Buildzone
  • Checkmate (Castle 10)
  • International Construction Warranties (ICW)
  • LABC
  • N.H.B.C. Guarantee
  • Premier Guarantee Scheme
  • Professional Consultants Certificate (previously an Architect’s Certificate). The issuing architect should have minimum professional indemnity insurance equivalent to the greater of £500,000 or the property value.
  • Protek
  • The Q Policy
  • Zurich Municipal New build

Please note: we are unable to accept retrospective building warranties.

C

Certification

All documents submitted to Precise Mortgages in support of an application will need to be certified by a suitable representative of the introducing broker or intermediary company. The certification will need to clearly show the following:

  • The company name
  • The certifier’s name and their position within the company
  • The certifier's signature
  • The date

Documents containing a photograph of the applicant will need to be certified as ‘true copy of the original’ and ‘true likeness of the applicant’ (unless the applicant has not been seen face to face). All other photocopied documents must be certified with the words ‘true copy of the original’.

ID and residency documents must be certified individually.

For further details please see our Anti Money Laundering Guidelines.

Construction Type

We accept properties of Standard and Modern Methods of Construction (MMC).

The following methods of construction are not considered acceptable:

  • Any property of Easiform construction.
  • Any property containing mundic concrete.
  • Any property containing no-fines concrete.
  • Flats or maisonettes in blocks exceeding 20 storeys.
  • Grade 1 listed buildings in England and Wales/Grades A and B in Scotland.
  • Mobile homes and houseboats.
  • Properties constructed with high-alumina cement, timber framed property with no brick skin or 100% steel or timber framed property.
  • Property designated defective under Part XVI Housing Act 1985, Housing (Scotland) Act 1987 or Pre-Cast Reinforced Concrete (PRC) property (irrespective of whether repaired under a licence repair scheme).

Cross Collateral Charges

Precise Mortgages are able to consider placing charges on more than one property to maximise the loan potential for an applicant.

Please contact us for further details.

D

Diplomatic Immunity

Applicants with diplomatic immunity from UK law will not be accepted.

E

Employment

Applicants must normally have been in their current job for a minimum of 6 months with 12 months continuous employment history.

Income verification will be required where an exit strategy is by way of refinancing a residential property. In all other instances we will contact you to request income verification if this is required.

Exit Strategy/Exit Route

We require all bridging loans to have a viable exit route. The following are considered acceptable exit routes:

  • Remortgage
  • Sale of security
  • Sale of other assets

We are able to consider other routes but this will be subject to individual review. Please contact us for further information.

F

Fees

Assessment fee: £295 (payable on completion)

Redemption administration fee: £114

Facility fee: Click here to see our bridging product guide for further details

Telegraphic transfer fee: £25

Some of these fees may be added to the loan subject to the maximum LTV limits applying to the product selected.

For applicants looking to utilise our Refurbishment Buy to Let proposition, separate rates and fees apply. Click here to view our Refurbishment Buy to Let Guide for full details.

Valuation and legal fees cannot be added to the loan.

Flats/Maisonettes

  • Maximum of 20 storeys
  • Must be self-contained with private facilities
  • Must have direct access to the highway via covered common parts

H

Heavy Refurbishment

This is suitable for properties where:

  • Planning permission is required.
  • Works are being completed under Permitted Development Rights.
  • There is a change in the overall use/nature of the premises.

Examples of when Heavy Refurbishment bridging finance could be used are:

  • Extensions
  • Basement digs (subject to individual review)
  • Loft Conversions
  • Single unit to multi-unit
  • Multi-unit to single unit
  • Commercial to residential
  • Barn conversions

Holiday Let

Applicant:

  • Available to experienced landlords only, no first time landlords.
  • Available for Personal ownership and Limited Company applications.

Loan:

  • Maximum LTV - 70%.
  • Rental will be assessed according to our standard ICR calculations. The property valuation report will include a standard buy to let rental figure based on the property being let on a 6 month AST basis. This will be the only figure we are able to use to make a rental assessment.

Property:

  • Minimum valuation £250,000 in London and £100,000 elsewhere.
  • The property can be a fully furnished house or a flat.
  • The property must be an established holiday let and we must be able to evidence that it is advertised as such. The URL link to the property advertisement will need to be provided on the application form. Any properties advertised via Airbnb or selling sites will not be accepted.
  • Properties located on a holiday park/village or that share communal facilities with other properties are not acceptable (this includes swimming pool and gym facilities). We are also unable to consider serviced apartments.
  • The property must not have planning or occupancy restrictions.
  • New build, Multi-unit and HMO properties will not be accepted as holiday let.

Houses in Multiple Occupation (HMO)

The definition of a HMO is as follows:

  • In England and Wales where there are at least 3 tenants who form more than one household and the tenants share toilet, bathroom or kitchen facilities.
  • In Scotland where there are at least 3 unrelated tenants forming 3 or more households and the tenants share toilet, bathroom or kitchen facilities.

Minimum valuation: £250,000 in London and £100,000 elsewhere.

Maximum number of bedrooms: 6 for Heavy and Light Refurbishment. 8 for standard bridging.

Where necessary, an application for any HMO Licence required by the Local Authority must have been made prior to completion.

Available to experienced landlords only, no first time landlords.

I

Income Verification

We will contact you to request income verification if this is required.

For employed applicants we will need the latest 3 months’ payslips and the latest P60.

For self-employed applicants we will need the latest year’s tax calculation and HMRC Tax Year Overview or accounts (we only accept accounts prepared by accountants with the following qualifications: ACA/FCA, CA, ACCA/FCCA, AAPA/FAPA, CIMA, CIPFA).

J

Joint Legal Representation

We work with a number of conveyancers who have a thorough understanding of the speed and service needed for bridging finance transactions.

In cases of joint representation we will instruct the conveyancers to act.

Click here for details of the firms who can act on behalf of Precise Mortgages and your customer.

L

Legal Fees

The applicant is responsible for paying all the conveyancers' fees, costs and disbursements. This includes the fees of the conveyancer acting for us in connection with the bridging finance if the borrower chooses to instruct a separate firm to act for them.

The borrower should obtain a detailed quotation from the conveyancing firm.

For further information please click here.

Whenever we require that a borrower, occupier or guarantor receives independent legal advice then they will need to pay the legal fees and disbursements of the conveyancer providing that legal advice.

Light Refurbishment

This is suitable for properties where:

  • Building regulations are required.
  • There is no change to the overall use/nature of the premises.

Examples of when Light Refurbishment bridging finance could be used are:

  • Properties deemed uninhabitable by long term lenders
  • Internal refurbishment (i.e. new kitchen, bathroom, redecoration)
  • Properties currently at ‘wind and water tight’ stage but require completion.

Limited Companies

Available for Non-Regulated bridging finance only.

Registered Limited Companies including those set up with the specific purpose of buying property (SPVs) are accepted.

Businesses must have a UK registered office address and must operate entirely within the UK.

We are able to consider Off-shore SPVs, please contact us to discuss the options we offer.

Maximum 4 qualifying directors/shareholders none of which may be another limited company.

In all applications, Personal Guarantees will be required for all Directors and shareholders over the age of 25, subject to the company having a maximum of 4 qualifying Directors and shareholders. There is no limit on the number of shareholders under the age of 25 subject to the shareholders being dependants of the Directors.

Loan Amount

First charge lending

Second charge lending

First charge lending

Minimum loan: £50,000 (please contact us if you have an application that may fall below this limit).
Maximum loan: No maximum.

Multi-unit maximum loan: £1,000,000

Refurbishment Buy to Let minimum loan:£50,000


Refurbishment Buy to Let maximum loan: No maximum for bridging element. £3m (£1m HMO) for BTL element.
Second charge lending

Minimum loan: £25,001

Maximum loan: No maximum.

Loan Purpose

We can consider loans for any purpose.

The following are examples of when we could help:

  • A transaction involving a gifted deposit
  • A discounted or undervalue purchase
  • Inherited properties
  • Purchasing a property at auction
  • Refurbishing or converting a property
  • Capital raising
  • Chain break finance
  • Expanding a property portfolio

Loan Security

We offer first and second charge loans.

Refurbishment Buy to Let is on a first charge basis only.

Loan Term

Minimum term: 1 month

Maximum term: 12 months for Regulated bridging finance and 18 months for Non-Regulated bridging finance

6 months for Refurbishment Buy to Let

Location

Properties located in mainland England, Wales and selected postcodes in Scotland are acceptable. The list below shows the Scottish postcodes we accept:

  • Tayside DD - All
  • Lothian EH - All
  • Stirlingshire FK - All
  • Glasgow G - All
  • Ayrshire KA - All mainland
  • Fife KY - All
  • Lanarkshire ML – All
  • Renfrewshire & Argyll PA - PA1 to PA19

LTV

Our maximum LTV limits are dependent on the type of loan taken, as a guide:

Loans above £2,000,000 60%
Loans between £1,000,000 and £2,000,000 70%
Standard bridging - Regulated and Non-Regulated 75%
Light Refurbishment - Regulated and Non-Regulated 75%
Heavy Refurbishment - Regulated and Non-Regulated 70%
Second charge lending 70%
Holiday Let 70%
Maximum loan to purchase price of 90% - this is subject to the above LTV limits not being exceeded.

M

Modern Methods of Construction

Properties that have any MMC components can be considered providing the property was constructed by one of the following companies:

  • Barratt Developments
  • Bellway
  • Berkeley
  • Bloor Homes
  • Bovis Homes
  • CALA Homes
  • Crest Nicholson
  • Galliford Try
  • Persimmon
  • Redrow
  • Taylor Wimpey

Multi-Unit

A Multi-Unit property is a single structure that contains separate self-contained units or flats that are held on a single freehold title. Each unit must be completely self-contained and meet our property criteria in its own right, including minimum valuation and ICR calculations.

Applicant:

  • Experienced landlords only.
  • Available for Personal ownership and Limited Company applications.

Loan:

  • Maximum loan amount - £1,000,000.
  • The loan and rental calculations will be based on an aggregate of the individual unit values and rental values provided on the valuation report. If the valuation or purchase price is lower than the aggregated values, our lending will be based on the lower figure.

Property:

  • Minimum valuation - £150,000 in London and £50,000 elsewhere (applies to each unit).
  • Maximum of 6 units within a single block, each unit must have a separate tenancy agreement.
  • New build properties and properties defined as an HMO are not acceptable.
  • The property must be entirely on a freehold title, any property with separate leases will not be accepted.
  • Each unit must have a minimum floor area of 30m2.
  • Multiple houses held on one freehold are not acceptable.
  • Holiday Lets are not acceptable.
  • Any adverse planning restrictions that could prevent the creation of leases are not acceptable.
  • Available for properties in England and Wales.

Please note: AVMs are not permitted for Multi-Unit properties.

N

Nationality/Residency

All UK and EEA nationals are acceptable providing they have a 3 year UK residential history. Non EEA Nationals will be considered subject to satisfactory status being established, a maximum LTV of 60% will apply.

Non-Regulated Bridging Finance

Our Non-Regulated bridging finance products offer borrowing solutions for property investors or landlords.

The following product features apply:

  • AVMs available for standard bridging products
  • Cross collateral charges can be considered
  • Multiple bridging loans can be considered
  • No maximum loan size
  • No facility fee products available
  • Maximum term 18 months

Number of Applicants

Maximum of 4 applicants.

Limited company application - maximum 4 qualifying directors/shareholders with no limit on shareholders under the age of 25 subject to them being dependents of the Directors.

O

Off-shore SPVs

We are able to consider business applications for SPVs registered in the following jurisdictions:

  • Jersey
  • Guernsey
  • Isle of Man
  • Gibraltar
  • Cayman Islands
  • British Virgin Islands

Please contact us for further information.

P

Portfolio Landlords

A portfolio landlord has 4 or more mortgaged buy to let properties or 3 mortgaged buy to let properties, plus at least 1 pending application with Precise Mortgages.

The following should be included in the number of properties a portfolio landlord holds:

  • All mortgaged buy to let properties owned by the applicant whether jointly, in their sole name or by a company of which they are a director or shareholder
  • Any property owned on a residential basis with Consent to Let
  • If the applicant is a limited company, properties owned by the company’s directors and shareholders, or owned by other companies of which the directors/shareholders are a shareholder or director.

Unencumbered properties do not need to be included but may strengthen the overall portfolio.

As part of our underwriting process we will make an assessment of an applicant’s portfolio based on their individual circumstances and taking into account the impact of future interest rate increases.

We will require the following forms for all portfolio landlord applications:

Property Value

Minimum value: £50,000 (£100,000 in London postcode districts)

HMO properties minimum value: £100,000 (£250,000 in London postcode districts)

R

Refurbishment Buy to Let

Our Refurbishment Buy to Let product allows your customer to take advantage of the flexibility of Bridging Finance with the surety of an exit onto a Buy to Let Mortgage once the property has been refurbished (providing there is no change in circumstances and the property meets the expected valuation following refurbishment).

Our Refurbishment Buy to Let proposition is ideal for landlords who are looking to make changes to a property that can be completed within 6 months and which are either:

  • Light Refurbishment or,
  • works completed under Permitted Development Rights where there is no change to the footprint or structure of the property (categorised as heavy refurbishment).
Bridging Finance Buy to Let Mortgages
Maximum LTV Up to 75% LTV Up to 80% LTV
Loan amount Min: £50,000
Max: Unlimited
Min: £25,001
Max: £3m (£1m HMO)
Minimum property value £50,000
(£100,000 in London)
HMOs £100,000
(£250,000 in London)
£50,000
(£150,000 in London)
HMOs £100,000
(£250,000 in London)

Each element of the loan should meet the relevant standard criteria. Customers must complete any refurbishment work within the buy to let offer validity period which will be 6 months from the valuation date.

Ideal for:

  • Properties needing works to meet the minimum EPC rating, such as boiler replacement.
  • Properties purchased at auction that require light refurbishment to be acceptable for mortgage purposes.
  • Landlords choosing to refurbish in order to maximise the rental yield of their property.

Click here to access our Refurbishment Buy to Let guide.

Please note, acceptance of the refurbishment project is subject to a full underwriter review to ensure it is in keeping with our Refurbishment Buy to Let product.

Regulated Bridging Finance

Our first and second charge bridging finance products can be used where the security is intended to be used, or is currently used, as a residential home by the applicant or a family member.

Regulated bridging finance can be used for almost any purpose, except where the applicant is looking to raise finance by way of a second charge and the loan is for business use (this would be covered by our non-regulated bridging finance).

The following product features apply:

  • Cross collateral charges can be considered
  • Multiple bridging loans can be considered
  • No maximum loan size
  • No facility fee products available
  • Maximum term 12 months

AVMs available for standard bridging products.

Regulated Mortgage Contracts

We will only accept advised sales on a retained interest basis.

Restrictive Covenants

We are unable to consider any property that may have a restricted occupancy clause within the planning permission, for example it can only be occupied for a maximum of 11 months in any one year. Property with unrestricted occupancy can be considered provided our normal requirements are met. Similarly, property that can only be used for retirement or sheltered accommodation is not accepted. This is the same for any property where a planning restriction (e.g. agricultural restriction) effectively limits a property’s appeal on the open market.

S

Schedule of Works Form

This is required on any application where a form of refurbishment is to be completed.

Click here to download a copy of the form.

Second Charge Lending

Suitable when short term finance is required against properties that have an existing mortgage.

Examples of when Second Charge lending could be used are:

  • Deposit for an additional purchase
  • Home improvement
  • Business purposes
  • To pay a tax bill
  • Portfolio growth
  • Purchasing land or development costs

Self-Employment

Where a company director owns 25% or more of the company shares, they will be treated as self-employed.

Applicants should normally have been self-employed for a minimum of 3 years.

Income verification will be required where an exit strategy is by way of refinancing a residential property. In all other instances we will contact you to request income verification if required.

Separate Legal Representation

If your customer wishes to use a conveyancer that is not on our approved panel to act on their behalf they are able to do so, but will be responsible for paying all the conveyancing fees involved on the transaction for both their chosen conveyancer and those acting on behalf of Precise Mortgages. We will require a conveyancer to be selected from the approved panel to act on behalf of Precise Mortgages. Click here for further details.

Social Housing

We are unable to consider any property purchased under any social housing schemes (e.g. Right to Buy, Shared Ownership, Key Worker etc.).

Additionally, we are unable to consider remortgaging any property purchased under any scheme where the original vendor retains any interest or where any pre-emption clause remains.

Specialist Reports

On some occasions we may require a specialist’s report for the property, these most commonly comprise of:

  • Timber and damp, electrical, trees, cavity wall tie
  • Mining report (for long term lending these are obtained by the solicitors and a special condition is imposed at offer)
  • Drainage report

Any specialist report should be prepared by a reputable firm. We will contact you if any of these reports are required.

Stage Payments

We are able to consider making stage payments on a loan which will be tailored to the needs of the individual application. Please contact us to discuss the options we offer.

Standard Bridging

Short term finance is secured on a property that is in a habitable condition and does not require any improvement. Examples of when standard bridging could be used are:

  • When funds are needed quickly
  • Meeting tight transaction deadlines
  • Buying a property at auction
  • Cash flow- funding for short term requirements
  • Chain-break finance
  • Landlords who want to make a quick purchase

Structural Reports

In some instances a structural report may be requested by the surveyor.

Reports will only be accepted from members of the following bodies:

The report must be referred to the valuer for comment. If the report is not addressed to the applicant, written confirmation must be obtained from the originator that its contents may be relied upon by the applicant(s).

We will not lend on any property with either ongoing movement or where monitoring is required, where this is identified by either the valuer, or where evident in the structural engineer’s report.

Submission requirements

Full requirements will be notified following case assessment however, the following identifies the standard requirements:

Mortgage conduct Proof of the most recent 12 months’ mortgage payments is required for all current mortgages.
Self-employment
  • The existing business must have been trading for a minimum of 3 years and the latest 2 years’ accounting information should be provided.
  • We accept a tax calculation with a tax year overview from HMRC in lieu of accounts.
  • We only accept accounts prepared by accountants with the following qualifications: ACA/FCA, CA, ACCA/FCCA, AAPA/FAPA, CIMA, CIPFA.
Company directors Where a company director owns 25% or more of the company shares they must be treated as self-employed.
Employment
  • A minimum of 6 months in current employment and 12 months continuous employment history is required for all employed applicants.
  • Income for employed applicants must be verified by means of the last 3 months’ payslips and most recent P60.
  • Where guaranteed or regular bonuses form a substantial part of an applicant’s total income, please provide sufficient evidence to confirm that this is the case.
  • For regular annual bonuses, a 2 year track record should be provided.
Assets and Liability Statements Statement should be signed by applicant/guarantor, or their accountant.
Schedule of works proposal form Normally required where any form of refurbishment is to be completed.
Second charge lending Precise Mortgages will allow an introducer to instruct lender questionnaire providing the response is submitted directly to Precise Mortgages by the lender.

T

Tenure

Freehold - Not acceptable for flats/maisonettes with the exception of Multi-unit properties.

Leasehold - Minimum remaining lease term is 70 years at the time of application.

Flying Freehold - A property with an element of Flying Freehold can be considered providing it does not exceed 10% of the total area.

Commonhold - Not acceptable.

U

Unacceptable Property Types

If construction is non-traditional contact us for acceptability.

The following types of property are not considered acceptable:

  • Live/work units or any property where commercial usage exceeds 20% will not be accepted.
  • Coach houses.
  • Any property affected by Japanese Knotweed.
  • Any property deemed unsuitable security by the valuer.
  • Any property where there is ongoing movement/monitoring is required.
  • Property where material environmental hazards are present.
  • Property where saleability may be adversely affected by local planning or by an unsatisfactory mining search.
  • We are unable to consider any property being purchased under any social housing schemes. We are unable to consider remortgaging any property purchased under any scheme where the original vendor retains any interest or where any pre-emption clause remains’.
  • We will not lend where the property is affected by or within influencing distance of any significant factor which will have a negative impact on the property’s value or re-saleability (e.g. overhead pylons, sub stations, etc).

Urgent Applications

If the applicant requires urgent bridging finance, click here or further information.

V

Validation

ID and Residency documents

If originals are not available, we are able to accept certified copies of any ID and Residency documents, subject to the following:

  • The documents must be certified by an independent professional; e.g. Broker (if FCA regulated), Solicitor, Accountant etc. and not by an applicant, guarantor or close relative.
  • All documents must be certified that the copy is ‘a true copy of the original’.
  • Where the document contains a photograph it must be certified as ‘a true likeness’ of the individual.
  • The name of the person and employer/firm certifying the documents must be clear.

Please refer to our Anti Money Laundering Guidelines for full details of our ID and Residency validation requirements.

Where a copy of an applicant’s ID documents have been obtained via a digital ID solution, we will require a copy of the customer’s digital report from one of the following companies:

  • Experian
  • Equifax
  • CallCredit
  • LexisNexis
  • TrustID
  • Onfido
  • GBGroup
Supporting Documents

If originals are not available, the following are acceptable subject to the documents being fully legible and the underwriter having no concerns in respect of authenticity:

  • Photocopies
  • Scanned images
  • Photographic images
  • Digital images

Precise Mortgages retains the right to request original documentation when considered appropriate.

Valuation

Precise Mortgages will instruct the valuation in all instances.

We will aim to use an AVM where possible for standard bridging finance providing:

  • The purchase price/property value does not exceed £1,000,000
  • The loan has a gross LTV of 50% or below

When multiple properties are used as security, an AVM can be used for each property where the overall LTV is 50% or below.

  • The AVM achieves an acceptable confidence level as determined by Rightmove.

We will notify you at DIP stage if your application qualifies for an AVM.

If an AVM cannot be used a physical valuation will be required.

AVMs are not available for:

  • HMOs
  • Holiday Let
  • Multi-Units
  • Any property requiring an element of refurbishment.

Valuation Fees

Purchase price or estimated value (up to) Standard bridging (AVM) Standard and light refurbishment Heavy refurbishment Houses in multiple occupation
£100,000 £99 £265 £465 £500
£150,000 £99 £300 £465 £500
£200,000 £99 £335 £480 £515
£300,000 £99 £360 £550 £585
£400,000 £99 £385 £610 £645
£500,000 £99 £430 £670 £705
£600,000 £99 £480 £735 £780
£700,000 £99 £530 £795 £830
£800,000 £99 £585 £905 £940
£900,000 £99 £640 £980 £1,015
£1,000,000 £99 £735 £1,050 £1,085
£1,000,000 plus N/A Contact us Contact us Contact us

Please note: Where more than 1 property is used as security for the loan we require each property to be valued. The charge for each valuation will be as per the table above. Once a valuation has been carried out the valuation fee is non-refundable. In all instances the valuation will be carried out on behalf of Precise Mortgages. All of the above valuation scale fees are inclusive of VAT (where applicable).

For applicants looking to utilise our Refurbishment Buy to Let proposition, separate rates and fees apply. Click here to view our Refurbishment Buy to Let Guide for full details.

For intermediary use only
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