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

A

Accountant Qualifications

We're able to consider accounts prepared by accountants with the following qualifications:

  • Institute of Chartered Accountants in England and Wales (ICAEW): ACA qualified;
  • Association of Chartered Certified Accountants (ACCA): ACCA/FCCA qualified;
  • Chartered Institute of Management Accountants (CIMA): ACMA/FCMA qualified;
  • Association of Authorised Public Accountants (AAPA): AAPA qualified;
  • Chartered Institute of Taxation (CIOT): CTA qualified;
  • Institute of Certified Public Accountants (Ireland) CPA Ireland: CPA/FCPA qualified;
  • Association of International Accountants (AIA): AIA/FAIA qualified;
  • Institute of Financial Accountants (IFA): FFA/AFA qualified;
  • Chartered Accountant (CA): CA qualified.

We'll need to be able to verify this qualification in order to consider the accounts provided.

Adverse Credit

Residential Mortgages

Residential Mortgages

We allow a certain amount of adverse credit with levels being dependent on the product chosen, please see the relevant product guide for further details. As a guide our maximum adverse allowed is:

Defaults: 5 in 24 months
CCJs: 3 in 24 months
Debt Management Plans (DMPs): Active DMPs and DMPs satisfied less than 36 months accepted.
Mortgage arrears: 1 in 12 months, 3 in 36 months (worst status)
IVA, Debt relief, 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.

Age

Residential Mortgages

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.

Armed Forces

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. 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.

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

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.

Builder’s Second Charge

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
  • Ark Residential New Build Warranty
  • BOPAS (Build Offsite Property Assurance Scheme) Modern Methods of Construction (MMC) only
  • Build Assure (New Homes Structural Defects Insurance)
  • Building Life Plans
  • Build zone Structural Warranty
  • Checkmate (Castle 10) New Home Warranty
  • Global Home Warranties
  • HomeProof
  • International Construction Warranties (ICW)
  • LABC New Home Warranty
  • N.H.B.C. Guarantee
  • One Guarantee
  • Premier Guarantee Scheme
  • Professional Consultants Certificate (previously an Architect’s Certificate).
  • Protek
  • The Q Policy
  • UK FINANCE Compliant Professional Consultants Certificate with proof of PI
  • Zurich Municipal “New build”

Please note:

For developments previously holding a CRL warranty, a retrospective warranty will be accepted from one of the above providers subject to a site survey having been undertaken by the new warranty provider at the time the retrospective warranty was underwritten.

In all other circumstances, warranties must exist upon completion of the property and cannot be applied retrospectively.

 

C

Capital raising

For all remortgages the amount of capital being raised and its purpose must be established. It should also be ensured that independent legal advice is sought where appropriate. Capital raising for speculative investment such as purchasing cryptocurrencies / bitcoins is not permitted.

For details on capital raising for purchase schemes, please visit our Help to Buy and Right to Buy sections.

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

Where an applicant has been seen on a face to face basis:

  • All submitted documents must be certified as follows ‘I certify this is a true copy of the original’
  • Where the document contains a photograph it must also be certified as ‘a true likeness of the applicant’

Where an applicant has been seen on a non-face to face basis:

  • All submitted documents must be certified as follows ‘I certify this is a true copy of the original’

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.

Where you are unable to certify the applicant’s documentation Post Office certification is acceptable and we will require a fully completed Post Office Certification Form. Further information can be found at www.postoffice.co.uk/identity/document-certification.

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

Cladding

Where the valuation is returned with noted uncertainty regarding the building’s cladding or external wall system an EWS1 certificate with supporting covering letter from the certificate provider will be requested for review.

Commercial Property

We are unable to consider any property where commercial usage exceeds 20%. The commercial element should not extend to light engineering, manufacturing, livestock, rearing or caring for domestic animals. “Home” office usage is acceptable however; such use should not include circumstances where clients are seen on the premises on a regular basis (e.g. dental surgery would not be acceptable).

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

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

Criminal convictions

A mortgage application cannot be considered before a criminal conviction is spent..

 

D

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.

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:

  • 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, and family gifted deposit for further information on these scenarios.

Diplomatic Immunity

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

 

E

Employed by family

Where there is any material relationship between the employer and applicant / guarantor, income confirmation from an independent source is required. 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.

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.

Income verification will be required in all instances.

 

F

Family Gifted Deposit

A gifted deposit from an immediate family member is an acceptable source of deposit unless the property is being purchased from the family member who is providing the gift. Immediate family is classed as: spouse/civil partner, parents (including step parents), grandparents, siblings, children, aunt/uncle.

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.

For all mortgage applications a gifted deposit will be accepted from an immediate family member* that will reside in but not have an interest in the property (the giftor does not need to be a mortgage applicant).

We will require a fully completed Gifted declaration form, click here to download a copy.

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

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.

Please refer to the ‘Tariff of mortgage charges’ document for full details.

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.

Ex-local authority flats or maisonettes may be considered. The block should be predominantly privately owned and will be subject to an individual underwriter review.

Studio flats are acceptable, click here for further details.

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.

 

G

Guarantors

We are unable to consider guarantors on our Residential Mortgages.

 

H

Help to Buy – Forces Help to Buy (FHTB)

We accept deposits from Forces Help to Buy scheme. The monthly repayments for this should be declared as a loan and will be included in our affordability assessment as a commitment. The Personal Information Note will be required to confirm the details.

Help to Buy Remortgage

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

It is possible to consider a remortgage transaction where the property was originally purchased on any of the shared equity Help to Buy schemes.

Where the customer is capital raising, then this will typically be to repay the equity loan in full or partially (staircasing). In all instances, the customer will require approval from the Government for any capital raising prior to completion of the remortgage.

Help to Buy remortgages are allowable subject to standard Residential lending criteria and the following:

  • Must be on a Capital Repayment basis;
  • Any equity loan fee (England and Wales only) remaining after the remortgage to be included for affordability purposes on the following bases:
  • 125% of current fee (if not staircasing)
  • 125% of residual fee (if staircasing)

(See the Residential Affordability Calculator

Government approval of any capital raising to be acquired prior to completion.

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.

 

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 (owns 25% or more shares) - remunerations plus dividends.

Additional income

Source Amount eligible Criteria
Tax credits 100%
  • Current Inland Revenue documentation
  • Child element only
  • 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 Mortgages

Employed

One month from the latest two months’ payslips.In some instances, further payslips may be required at the underwriters discretion.

Self-employed

One year's accounting information is required as a minimum. 2 years may be required depending on application. The following are acceptable:

SA302 or Tax Calculation, accompanied by a Tax Year Overview.

Accounts, prepared by accountants with the following qualifications:

  • Institute of Chartered Accountants in England and Wales (ICAEW): ACA qualified;
  • Association of Chartered Certified Accountants (ACCA): ACCA/FCCA qualified;
  • Chartered Institute of Management Accountants (CIMA): ACMA/FCMA qualified;
  • Association of Authorised Public Accountants (AAPA): AAPA qualified;
  • Chartered Institute of Taxation (CIOT): CTA qualified;
  • Institute of Certified Public Accountants (Ireland) CPA Ireland: CPA/FCPA qualified;
  • Association of International Accountants (AIA): AIA/FAIA qualified;
  • Institute of Financial Accountants (IFA): FFA/AFA qualified;
  • Chartered Accountant (CA): CA qualified.

Interest Only

  • Maximum LTV 65%.
  • Affordability will be calculated according to the repayment method selected.
  • Not available on Help 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). Please refer to repayment vehicles for further details

L

Let to Buy (LTB)

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.

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 Mortgages
  • Minimum loan £25,001
  • Maximum loan £1,000,000

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

LTV limits

Residential Mortgages

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

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

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

Location

Residential Mortgages

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
 

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. Where terms of employment are changing, e.g. reduction in hours, a letter from the employer addressed to the Group is required to evidence income confirming the following:

  • Salary and working hours before commencing maternity leave;
  • Return to work date;
  • Salary and working hours after returning to work;
  • Any changes to the applicant’s contract of employment.

Where the applicant is returning on the same terms, income will be assessed on pre-maternity salary evidenced by one of the latest two months payslips prior to commencing maternity leave.

Minimum Ownership

Remortgages are not acceptable where the security property has been owned for less than 12 months. The exceptions to these rules are:

- Where the application is to exit a Precise Mortgages Bridging Loan. In these circumstances, the switch to a long term product may proceed at any time following advance of the Bridging Loan providing the underwriter is satisfied with the overall transaction; e.g. not flipping a discounted purchase.

- Where the property has recently been inherited – probate must have been granted prior to mortgage application and verification of this must be supplied ahead of the Mortgage Offer being granted. In these circumstances, no minimum period of property ownership applies.

Minimum Income

£15,000 for the main applicant from primary employment. We will use the total eligible income per annum which can include regular, guaranteed additional income such as shift allowance or overtime, i.e. £14,000 basic pay + £2,000 shift allowance, subject to underwriter review. See income sources for more details.

Minimum Property Value/Purchase Price

Residential Mortgages

Residential Mortgages

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/Residency

UK nationals are acceptable providing they have a 3 year UK residential history. EU citizens and foreign nationals from outside of the EEA must have been resident in the UK for the last 3 years and have permanent rights to reside in the UK. A full three year residential history is required for all applicants. All applicants must be resident in the UK at the time of completion.
  • UK Nationals that have resided abroad during the last three years can be approved by a discretionary mandate holder where:
  • A temporary, overseas posting has been necessary as part of their employment;
  • The underwriter is satisfied with the circumstances;
  • Sufficient credit records are available; and
  • The applicants are resident in the UK at the time of completion.
  • Non-UK Nationals must provide evidence of permenant rights to remain in the UK.
  • European Economic Area (EEA) Nationals may provide a valid permanent residence document or documents evidencing that "settled" or "pre-settled" status has been granted under the EU Settlement Scheme.
  • Non-EEA Nationals must provide evidence of permanent rights to remain in the UK.

New Build

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.

A maximum of 5% builder cash based incentive is acceptable. Example incentives include discounted purchase price, stamp duty paid, legal fees paid, cash back after completion and *mortgage payments paid (*must be paid as one lump sum on completion).

Some Section 106 planning obligations are acceptable.

No reassignment of contracts.

New Build Offer Validity

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.
  • Latest month's payslip (employed) OR latest month's bank statement (self-employed) for each applicant.
  • 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 £80 fee).

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

NHS Bank Nursing

We may be able to consider applicant who are employed on an NHS Bank Nursing basis. Income from bank nursing will be treated as zero hours contract income. 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 7 months from original valuation) on request from either a broker or a solicitor. For New Build offers click here.

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.

Overpayments

Customers are able to make overpayments on their mortgage, should they wish to do so.

Customers should read our Customer Information Booklet and their Mortgage Offer for full details and whether early repayment charges would apply to the overpayments.

Click here for our existing customer website.

 

P

Part and Part

  • 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). Please refer to repayment vehicles for further details

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 Mortgages

Please see Income Sources for further details.

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

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

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. A “granny annexe” may be considered suitable, subject to the valuer’s comments.

Properties with more than 1 kitchen will be considered on an individual basis.

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 Please refer to The UK Finance Lenders handbook for the currently acceptable schemes.

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 £80.

 

R

Refund of Valuation and Assessment Fee

Where a mortgage product includes a refund of the valuation and/or the assessment fee this will be refunded on completion of the mortgage. If a Homebuyer’s Report was selected, we will refund an amount equivalent to our standard valuation and assessment fee.

Any refund will be included in the funds sent to the conveyancer or, if you have appointed your own conveyancer to act for you separately, the funds will be sent to our conveyancer. Applicants should contact their conveyancer to find out how fee refunds will be distributed.

Remortgage

We will accept remortgage applications 12 months after the original purchase date.

Repayment Methods

Residential Mortgages

Residential Mortgages
  • 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.

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).

A combination of repayment vehicles can be used.

The repayment vehicle/s must be in Pound Sterling and for joint applications the vehicle/s 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 require documentary evidence of all repayment vehicles in place, where applicable.

We're 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.
  • 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.
  • Savings/Investments – 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). 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)

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

For RTB applications, the standard Residential criteria apply subject to the additional requirements:

Scheme Type - Schemes operated by recognised Local Authorities / Housing Associations only

Parties to Mortgage - Mortgage application must be in the same names as the RTB offer, unless the applicants are married in which case application must proceed in joint names

Loan Purpose - Purchase

Maximum LTV - Purchase; Maximum lending equal to 100% of the discounted purchase price (plus lender fees) subject to not exceeding 75% LTV – no capital raising allowed over and above the purchase price

Jurisdiction - England only

Repayment Type - Capital Repayment only

Property Restrictions - Houses only

Additional Validation - Purchase; Require sight of the RTB offer from the Local Authority / Housing Association pre-offer; this is to accurately determine the discount being given and therefore prevent capital raising

Purchase - proof of rent payments must be up to date

 

S

Section 106 Planning Obligations

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.

Social Housing

Precise Mortgages are unable to consider any property being purchased under Shared Ownership or Key Worker Schemes.

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 Mortgages
  • Minimum term 5 years
  • Maximum term 35 years

U

Unacceptable Property Types

The following types of property are not considered acceptable:

  • Commercial Properties.
  • Live/work units.
  • Any property affected by Japanese knotweed class A or B. Class C and D are acceptable. Class C will require a satisfactory management plan in place.
  • 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're 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).
  • Any property with spray foam roof void insulation.
  • 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.

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.

 

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 and dated within the last 3 months by an independent professional; e.g. Broker (if FCA regulated), Solicitor, Accountant etc. and not by an applicant, guarantor or close relative.
    Where an applicant has been seen on a face to face basis:
    • All submitted documents must be certified as follows ‘I certify this is a true copy of the original’
    • Where the document contains a photograph it must also be certified as ‘a true likeness of the applicant’
    Where an applicant has been seen on a non-face to face basis:
    • All submitted documents must be certified as follows ‘I certify this is a true copy of the original’

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:

  • Amiqus
  • CallCredit / TransUnion
  • Credas
  • Experian
  • Equifax
  • GBGroup
  • LexisNexis
  • Onfido
  • TrustID
  • Yoti
Supporting Documents (including Standard Declaration – both pages)

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

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 Mortgages

All applications will require a standard valuation to be instructed by Precise Mortgages. The valuation will be immediately instructed at full case submission stage.

Click here for details of the fees involved.

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

  • The Home Report was carried out within 3 months 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 £80 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.

Vulnerable Customers

We are committed to ensuring that our customers are supported, especially those with vulnerable circumstances. If a customer may require support or adjustments to be made, please contact us on 0800 116 4385 (option 1) to discuss what we can do to help.

If we identify that a customer may be vulnerable, we will contact you or the customer to gain a better understanding of the circumstances and what appropriate help we may be able to provide.

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

The use of income sourced from a zero hour contract is only permitted for the secondary applicant (i.e. not the main income earner).

Payslips covering the last 6 months will be required to verify income. 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

A

Accountant Qualifications

We're able to consider accounts prepared by accountants with the following qualifications:

  • Institute of Chartered Accountants in England and Wales (ICAEW): ACA qualified;
  • Association of Chartered Certified Accountants (ACCA): ACCA/FCCA qualified;
  • Chartered Institute of Management Accountants (CIMA): ACMA/FCMA qualified;
  • Association of Authorised Public Accountants (AAPA): AAPA qualified;
  • Chartered Institute of Taxation (CIOT): CTA qualified;
  • Institute of Certified Public Accountants (Ireland) CPA Ireland: CPA/FCPA qualified;
  • Association of International Accountants (AIA): AIA/FAIA qualified;
  • Institute of Financial Accountants (IFA): FFA/AFA qualified;
  • Chartered Accountant (CA): CA qualified.

We'll need to be able to verify this qualification in order to consider the accounts provided.

Adverse Credit

Temporary changes to our maximum allowable adverse criteria.

Defaults: 0 in 24 months
CCJs: 0 in 24 months
Mortgage arrears: 0 in 36 months
Unsecured arrears: 1 in 12 months, 2 in 36 months (worst status)
IVA, Debt relief, and bankruptcy: Must have been discharged for 6 years
Repossessions: Are not accepted
Debt Management Plans (DMPs): 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

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

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
  • Ark Residential New Build Warranty
  • BOPAS (Build Offsite Property Assurance Scheme) Modern Methods of Construction (MMC) only
  • Build Assure (New Homes Structural Defects Insurance)
  • Building Life Plans
  • Build zone Structural Warranty
  • Checkmate (Castle 10) New Home Warranty
  • Global Home Warranties
  • HomeProof
  • International Construction Warranties (ICW)
  • LABC New Home Warranty
  • N.H.B.C. Guarantee
  • One Guarantee
  • Premier Guarantee Scheme
  • Protek
  • The Q Policy
  • UK FINANCE Compliant Professional Consultants Certificate with proof of PI
  • Zurich Municipal “New build”

Please note:

For developments previously holding a CRL warranty, a retrospective warranty will be accepted from one of the above providers subject to a site survey having been undertaken by the new warranty provider at the time the retrospective warranty was underwritten.

In all other circumstances, warranties must exist upon completion of the property and cannot be applied retrospectively.

C

Capital raising

For all remortgages the amount of capital being raised and its purpose must be established. It should also be ensured that independent legal advice is sought where appropriate. Capital raising for speculative investment such as purchasing cryptocurrencies / bitcoins is not permitted.

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

Where an applicant has been seen on a face to face basis:

  • All submitted documents must be certified as follows ‘I certify this is a true copy of the original’
  • Where the document contains a photograph it must also be certified as ‘a true likeness of the applicant’

Where an applicant has been seen on a non-face to face basis:

  • All submitted documents must be certified as follows ‘I certify this is a true copy of the original’

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.

Where you are unable to certify the applicant’s documentation Post Office certification is acceptable and we will require a fully completed Post Office Certification Form. Further information can be found at www.postoffice.co.uk/identity/document-certification.

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

Cladding

Where the valuation is returned with noted uncertainty regarding the building’s cladding or external wall system an EWS1 certificate with supporting covering letter from the certificate provider will be requested for review.

Commercial Property

We are unable to consider any property where commercial usage exceeds 20%. The commercial element should not extend to light engineering, manufacturing, livestock, rearing or caring for domestic animals. “Home” office usage is acceptable however; such use should not include circumstances where clients are seen on the premises on a regular basis (e.g. dental surgery would not be acceptable).

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.

Consumer Buy to Let (CBTL)

Consumer buy to let is accepted.

Criminal convictions

A mortgage application cannot be considered before a criminal conviction is spent.

D

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.

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:

  • 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.

Diplomatic Immunity

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

E

Employed by family

Where there is any material relationship between the employer and applicant / guarantor, income confirmation from an independent source is required. This is in addition to our standard income verification requirements.

Employment

Employed

Applicants must be in permanent employment. 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.

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.

Income verification may be required.

EPC ratings

Applications where it’s confirmed that the minimum EPC rating for the purchase property is within band F or band G will be declined unless a valid exemption is in place.

F

Family Gifted Deposit

A gifted deposit from an immediate family member is an acceptable source of deposit unless the property is being purchased from the family member who is providing the gift. Immediate family is classed as: spouse/civil partner, parents (including step parents), grandparents, siblings, children, aunt/uncle.

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.

We will require a fully completed Gifted declaration form, click here to download a copy.

Family Lets

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

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

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.

Please refer to the ‘Tariff of mortgage charges’ document for full details.

First Time Buyer (FTB) Landlords

Lending to first time buyers or applicants who have not owned a UK property in the last 18 months is only permitted where another party to the application is not a first time buyer .

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.

Ex-local authority flats or maisonettes may be considered. The block should be predominantly privately owned and will be subject to an individual underwriter review.

Studio flats are acceptable, click here for further details.

Foster carers

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

G

Guarantors

Mortgage guarantors are acceptable 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

Houses in Multiple Occupation (HMO)

A House in Multiple Occupation (HMO) is defined as any property where both of the following conditions are met:

  • There are at least 3 tenants in occupation who form more than one household
  • The tenants share toilet, bathroom or kitchen facilities

For clarification, any property meeting the criteria above is deemed to be a HMO for lending purposes; this is regardless of the number of tenancy agreements in place or the type of tenant.

Applicant

  • Available to experienced landlords only.

Loan

  • Maximum loan amount - £1,000,000
  • Maximum LTV - maximum 70% up to £1,000,000, 75% up to £750,000 and 80% up to £500,000, product restrictions and portfolio lending limits may also apply
  • Rental will be assessed according to our standard ICR calculations determined by the multi-occupancy rental valuation.

Property

  • Minimum valuation - £250,000 in London and £100,000 elsewhere. The capital valuation will be assessed on a comparable residential basis
  • Maximum bedrooms - 6
  • 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

Please note: Homebuyers valuations are not available for HMO properties.

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 (owns 25% or more shares) - remunerations plus dividends.

Additional income

Source Amount eligible Criteria
Tax credits 100%
  • Current Inland Revenue documentation
  • Child element only
  • 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

Employed

The latest 3 months' payslips (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:

  • Institute of Chartered Accountants in England and Wales (ICAEW): ACA qualified;
  • Association of Chartered Certified Accountants (ACCA): ACCA/FCCA qualified;
  • Chartered Institute of Management Accountants (CIMA): ACMA/FCMA qualified;
  • Association of Authorised Public Accountants (AAPA): AAPA qualified;
  • Chartered Institute of Taxation (CIOT): CTA qualified;
  • Institute of Certified Public Accountants (Ireland) CPA Ireland: CPA/FCPA qualified;
  • Association of International Accountants (AIA): AIA/FAIA qualified;
  • Institute of Financial Accountants (IFA): FFA/AFA qualified;
  • Chartered Accountant (CA): CA qualified.

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 for more details).

Interest Coverage Ratio (ICR)

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 140%
Additional rate 140%
Limited companies 125%

*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 – Pay rate plus 1.55% (minimum of 5.50%).
  • Short-term fixed rate – Pay rate plus 1.55% (minimum of 5.50%).
  • 5-year fixed rate – The initial pay rate.

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

Intercompany Loan

This is acceptable for limited company lending subject to:

  • The majority shareholder to mirror across SPV and connected company.
  • Must be UK to UK company (no offshore companies).
  • Loan needs to be repayable, and a term agreed.
  • The loan term must not exceed that of the mortgage.
  • Rate of interest applied should be HMRC's 'Actual official rate' as a minimum.
  • Connected company not to have any interest or charge over our security.
  • Any monthly payment to be included in ICR calculation. This will be done by the Underwriter following review of the Loan Agreement. For an indicative maximum loan, use the Buy To Let Calculator by reducing the rental income by the loan payment. The full rental income must be declared on submission of the application.

A signed loan agreement must be provided which confirms that the loan is repayable, the term agreed, interest rate, monthly payment and that there is no interest or charge over the security property.

L

Let to Buy (LTB)

Let to Buy situations may be considered. 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

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.

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 Direct Debit Account

For Limited Company applications Precise Mortgages will accept a Direct Debit from a bank account in the name of:

  • the Limited Company
  • the sole director of the Limited Company
  • more than one (but not necessarily all) director(s) of the Limited Company.

Limited Company Legal Advice

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.

The legal advice can be provided by the solicitor acting as the conveyancer or a separate solicitor within the same company, providing that they are prepared to give the advice and ensure there is no conflict of interest.

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

Loan amount

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).

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

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

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

Loan amount Maximum loan size
Up to £500,000 80%
Up to £750,000 75%
Up to £1,000,000 70%
Up to £3,000,000 60%

(unless otherwise stated)

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

  • Studio flats - maximum LTV 70%
  • Multi-Units - maximum LTV 70% up to £1,000,000 or 75% up to £750,000
  • HMOs - maximum LTV 70% up to £1,000,000, 75% up to £750,000, 80% up to £500,000

Where applicable portfolio lending limits will also apply.

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

M

Maternity Leave

Applicants on maternity leave are acceptable. Where terms of employment are changing, e.g. reduction in hours, a letter from the employer addressed to the Group is required to evidence income confirming the following:

  • Salary and working hours before commencing maternity leave;
  • Return to work date;
  • Salary and working hours after returning to work;
  • Any changes to the applicant’s contract of employment.

Where the applicant is returning on the same terms, income will be assessed on pre-maternity salary evidenced by the 3 months’ payslips prior to maternity leave.

Minimum Income

There is no minimum income requirement for buy to let applications below £1,000,000. However, the applicant will still be required to be in receipt of an acceptable form of income, in order to display the ability to cover rental voids.

For loans above £1,000,000 we require a minimum income of £100,000 in aggregate across all applicants 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.

Minimum Ownership

Remortgages are not acceptable where the security property has been owned for less than 6 months.

The exceptions to these rules are:

  • Where the application is to exit a Precise Mortgages Bridging Loan. In these circumstances, the sswitch to a long term product may proceed at any time following advance of the Bridging Loan providing the underwriter is satisfied with the overall transaction; e.g. not flipping a discounted purchase.
  • Where the property has recently been inherited – probate must have been granted prior to mortgage application and verification of this must be supplied ahead of the Mortgage Offer being granted. In these circumstances, no minimum period of property ownership applies.

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.

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 - 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 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: Homebuyers valuations are not available for Multi-unit properties.

N

Nationality/Residency

UK nationals are acceptable providing they have a 3 year UK residential history. EU citizens and foreign nationals from outside of the EEA must have been resident in the UK for the last 3 years and have permanent rights to reside in the UK.

A full three year residential history is required for all applicants.

All applicants must be resident in the UK at the time of completion.

  • UK Nationals that have resided abroad during the last three years can be approved by a discretionary mandate holder where:
  • A temporary, overseas posting has been necessary as part of their employment;
  • The underwriter is satisfied with the circumstances;
  • Sufficient credit records are available; and
  • The applicants are resident in the UK at the time of completion.

Non-UK Nationals must provide evidence of permenant rights to remain in the UK.

  • European Economic Area (EEA) Nationals may provide a valid permanent residence document or documents evidencing that "settled" or "pre-settled" status has been granted under the EU Settlement Scheme.
  • Non-EEA Nationals must provide evidence of permanent rights to remain in the UK.

New Build

  • 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 Multi-Unit applications.

New Build Offer Validity

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.
  • Latest month's payslip (employed) OR latest month's bank statement (self-employed) for each applicant.
  • 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 £80 fee).

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

NHS Bank Nursing

We may be able to consider applicant who are employed on an NHS Bank Nursing basis. Income from bank nursing will be treated as zero hours contract income. 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 7 months from original valuation) on request from either a broker or a solicitor. For New Build offers click here.

Overpayments

Customers are able to make overpayments on their mortgage, should they wish to do so.

Customers should read our Customer Information Booklet and their Mortgage Offer for full details and whether early repayment charges would apply to the overpayments.

Click here for our existing customer website.

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

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

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.

No limit on the number or value held with other lenders.

Portfolio Landlord

A portfolio landlord has four or more mortgaged buy to let properties.

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.
  • Pending buy to let purchase applications with Precise.

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

The portfolio validation process will include an assessment of the wider portfolio ICR and must be a minimum of 125% ICR at 5% pay rate and a maximum of 85% LTV.

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

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. A “granny annexe” may be considered suitable, subject to the valuer’s comments.

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.

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 £80.

R

Refund of Valuation and Assessment Fee

Where a mortgage product includes a refund of the valuation and/or the assessment fee this will be refunded on completion of the mortgage. If a Homebuyer’s Report was selected, we will refund an amount equivalent to our standard valuation and assessment fee.

Any refund will be included in the funds sent to the conveyancer or, if you have appointed your own conveyancer to act for you separately, the funds will be sent to our conveyancer. Applicants should contact their conveyancer to find out how fee refunds will be distributed.

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).

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.

Bridging Finance Buy to Let
Maximum LTV Up to 65% LTV Up to 75% LTV
Loan amount Min: £50,000
Max: £1,000,000
(gross including fees and retained interest)
Min: £40,000
Max: £3,000,000 (£1m HMO)
Minimum property value £100,000
HMOs £100,000
(£250,000 in London)
£50,000 (£150,000 in London)
HMOs £100,000 (£250,000 in London)

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.

Properties where the proposed works require Permitted Development Rights (PDR) or would be classed as heavy refurbishment are not currently accepted.

Refurbishment Buy to Let forms

Remortgage

We will accept remortgage applications 6 months after the original purchase 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 has been secured at the time of application by utilising our Refurbishment Buy to Let product.

Repayment Methods

  • Capital and Interest
  • Interest Only

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

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.

Social Housing

Precise Mortgages are unable to consider any property being purchased under Shared Ownership or Key Worker Schemes.

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

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) from a minimum of 6 months and up to a maximum of 36 months.

Properties in Scotland must be let under a single short assured tenancy from a minimum of 6 months and 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.

Tenure

Freehold - acceptable for houses. Freehold is unacceptable 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. 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

  • Minimum term 5 years
  • Maximum term 35 years

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

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:

  • Top slicing is currently unavailable to first-time buyers and for remortgage applications.
  • Top slicing now available 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 be 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.

U

Unacceptable Property Types

The following types of property are not considered acceptable:

  • Commercial Properties.
  • Live/work units.
  • Any property affected by Japanese knotweed class A or B. Class C and D are acceptable. Class C will require a satisfactory management plan in place.
  • 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. We're 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).
  • Any property with spray foam roof void insulation.
  • 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 has been owned by the vendor for less than 6 months.

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.

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 and dated within the last 3 months by an independent professional; e.g. Broker (if FCA regulated), Solicitor, Accountant etc. and not by an applicant, guarantor or close relative.
    Where an applicant has been seen on a face to face basis:
    • All submitted documents must be certified as follows ‘I certify this is a true copy of the original’
    • Where the document contains a photograph it must also be certified as ‘a true likeness of the applicant’
    Where an applicant has been seen on a non-face to face basis:
    • All submitted documents must be certified as follows ‘I certify this is a true copy of the original’

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:

  • Amiqus
  • CallCredit / TransUnion
  • Credas
  • Experian
  • Equifax
  • GBGroup
  • LexisNexis
  • Onfido
  • TrustID
  • Yoti
Supporting Documents (including Standard Declaration – both pages)

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

All applications will require a standard valuation to be instructed by Precise Mortgages. The valuation will be immediately instructed at full case submission stage. If the valuation does not take place we are able to refund this fee, but the £180 assessment fee is non-refundable.

Click here for details of the fees involved.

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 properties in Scotland, a valuation retype cannot be considered.

All valuations are subject to underwriter review.

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.

Vulnerable Customers

We are committed to ensuring that our customers are supported, especially those with vulnerable circumstances. If a customer may require support or adjustments to be made, please contact us on 0800 116 4385 (option 1) to discuss what we can do to help.

If we identify that a customer may be vulnerable, we will contact you or the customer to gain a better understanding of the circumstances and what appropriate help we may be able to provide.

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 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

  • Conversion of a residential unit to an HMO with up to 10 lettable rooms now accepted on Tier 2 Refurbishment
  • Conversion of a commercial unit to a maximum of 4 flats now accepted on Tier 2 Refurbishment
  • s

A

Accountant Qualifications

We're able to consider accounts prepared by accountants with the following qualifications:

  • Institute of Chartered Accountants in England and Wales (ICAEW): ACA qualified;
  • Association of Chartered Certified Accountants (ACCA): ACCA/FCCA qualified;
  • Chartered Institute of Management Accountants (CIMA): ACMA/FCMA qualified;
  • Association of Authorised Public Accountants (AAPA): AAPA qualified;
  • Chartered Institute of Taxation (CIOT): CTA qualified;
  • Institute of Certified Public Accountants (Ireland) CPA Ireland: CPA/FCPA qualified;
  • Association of International Accountants (AIA): AIA/FAIA qualified;
  • Institute of Financial Accountants (IFA): FFA/AFA qualified;
  • Chartered Accountant (CA): CA qualified.

We'll need to be able to verify this qualification in order to consider the accounts provided.

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: 21 at application.

Maximum age:

  • 85 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.

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.

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 60% or below. When multiple properties are used as security, an AVM can be used for each property where the overall LTV is 60% 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
  • Multi-units
  • Any property requiring an element of refurbishment (including refurbishment buy to let applications).
  • New build properties or properties recently converted (built/converted in the last 24 months).
  • Properties that have never been occupied.
  • Properties with more than two acres of land.
  • Properties built using Modern Methods of Construction.
  • Properties above or adjacent to commercial properties.
  • Flats.
  • Leasehold properties with less than 85 years remaining on the lease.
  • Listed buildings.
  • Suspected poor condition.

B

Builder’s Deposit

A Builder’s Deposit is only acceptable on New Build purchases (i.e. stamp duty, legal fees, cash back, mortgage payments). Any incentive amount will be deducted from the lower of the purchase price/valuation before calculating the LTV.

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.

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
  • Ark Residential New Build Warranty
  • BOPAS (Build Offsite Property Assurance Scheme) Modern Methods of Construction (MMC) only
  • Build Assure (New Homes Structural Defects Insurance)
  • Building Life Plans
  • Build zone Structural Warranty
  • Checkmate (Castle 10) New Home Warranty
  • Global Home Warranties
  • HomeProof
  • International Construction Warranties (ICW)
  • LABC New Home Warranty
  • N.H.B.C. Guarantee
  • One Guarantee
  • Premier Guarantee Scheme
  • Professional Consultants Certificate (previously an Architect’s Certificate).
  • Protek
  • The Q Policy
  • UK FINANCE Compliant Professional Consultants Certificate with proof of PI
  • Zurich Municipal “New build”

Please note:

For developments previously holding a CRL warranty, a retrospective warranty will be accepted from one of the above providers subject to a site survey having been undertaken by the new warranty provider at the time the retrospective warranty was underwritten.

In all other circumstances, warranties must exist upon completion of the property and cannot be applied retrospectively.

C

Capital raising

Capital raising will be considered for any legal purpose. The amount of capital being raised and its purpose must be established.

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

Where an applicant has been seen on a face to face basis:

  • All submitted documents must be certified as follows ‘I certify this is a true copy of the original’
  • Where the document contains a photograph it must also be certified as ‘a true likeness of the applicant’

Where an applicant has been seen on a non-face to face basis:

  • All submitted documents must be certified as follows ‘I certify this is a true copy of the original’

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

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

Where you are unable to certify the applicant’s documentation Post Office certification is acceptable and we will require a fully completed Post Office Certification Form. Further information can be found at www.postoffice.co.uk/identity/document-certification.

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

Cladding

Where the valuation is returned with noted uncertainty regarding the building’s cladding or external wall system an EWS1 certificate with supporting covering letter from the certificate provider will be requested for review.

Commercial Property

We are unable to consider any property where commercial usage exceeds 20%. The commercial element should not extend to light engineering, manufacturing, livestock, rearing or caring for domestic animals. “Home” office usage is acceptable however; such use should not include circumstances where clients are seen on the premises on a regular basis (e.g. dental surgery would not be acceptable).

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

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

Construction

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

We may be able to consider on referral:

  • Timber framed period properties
  • Post 1980 steel framed properties.

The following methods of construction are not considered acceptable:

  • Properties containing Mundic concrete classified as class B or C are unacceptable. Classes A and A/B and A1, A2 and A3 are acceptable.
  • 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).

Criminal convictions

A mortgage application cannot be considered before a criminal conviction is spent..

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

Debt Consolidation

We will accept applications where there is an element of capital raising for debt consolidation.

Diplomatic Immunity

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

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
  • Director Loan
  • Intercompany loan
  • Remortgage or secured loan on an existing property owned by the applicant

Unacceptable deposit sources

The following forms of deposit/incentive are not acceptable:

  • 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.
  • 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, and family gifted deposit for further information on these scenarios.

E

Employed by family

Where there is any material relationship between the employer and applicant / guarantor, income confirmation from an independent source is required. This is in addition to our standard and income verification requirements.

Employment

Applicants must be in permanent employment. 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.

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.

Income verification may be required.

EPC ratings

Applications where it’s confirmed that the minimum EPC rating for the purchase property is within band F or band G will be declined unless a valid exemption is in place.

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

Family Gifted Deposit

A gifted deposit from an immediate family member is an acceptable source of deposit unless the property is being purchased from the family member who is providing the gift. Immediate family is classed as: spouse/civil partner, parents (including step parents), grandparents, siblings, children, aunt/uncle.

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.

We will require a fully completed Gifted declaration form, click here to download a copy.

Family Lets

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

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

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

Please refer to the ‘Tariff of mortgage charges’ document for full details.

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.

First Time Buyers (FTB)

First-time buyers (any applicant that has not owned a property in the last 18 months) are not acceptable.

Flats/Maisonettes

  • 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.

Ex-local authority flats or maisonettes may be considered. The block should be predominantly privately owned and will be subject to an individual underwriter review.

Studio flats are acceptable, click here for further details.

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.

G

Guarantors

Mortgage guarantors are acceptable for Limited Company applications. All company Directors are required to provide a Personal Guarantee for the mortgage. The directors added to the application must match to those registered with Companies House.

H

Houses in Multiple Occupation (HMO)

A House in Multiple Occupation (HMO) is defined as any property where both of the following conditions are met:

  • There are at least 3 tenants in occupation who form more than one household
  • The tenants share toilet, bathroom or kitchen facilities

For clarification, any property meeting the criteria above is deemed to be a HMO for lending purposes; this is regardless of the number of tenancy agreements in place or the type of tenant.

Applicant

  • Available to experienced landlords only.

Loan

  • Maximum loan amount - £1,000,000
  • Rental will be assessed according to our standard ICR calculations determined by the multi-occupancy rental valaution.

Property

  • Minimum valuation - £250,000 in London and £100,000 elsewhere. The capital valuation will be assessed on a comparable residential basis
  • Maximum 10 lettable rooms
  • 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

Please note: Homebuyers valuations are not available for HMO properties. For HMOs with 7 to 10 lettable rooms a bespoke valuation will be required. Please contact us for further details.

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 (owns 25% or more shares) - remunerations plus dividends.

Additional income

Source Amount eligible Criteria
Tax credits 100%
  • Current Inland Revenue documentation
  • Child element only
  • 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

Employed

One month from the latest two months’ payslips.In some instances, further payslips may be required at the underwriters discretion.

Self-employed

One year's accounting information is required as a minimum. 2 years may be required depending on application. The following are acceptable:

SA302 or Tax Calculation, accompanied by a Tax Year Overview.

Accounts, prepared by accountants with the following qualifications:

  • Institute of Chartered Accountants in England and Wales (ICAEW): ACA qualified;
  • Association of Chartered Certified Accountants (ACCA): ACCA/FCCA qualified;
  • Chartered Institute of Management Accountants (CIMA): ACMA/FCMA qualified;
  • Association of Authorised Public Accountants (AAPA): AAPA qualified;
  • Chartered Institute of Taxation (CIOT): CTA qualified;
  • Institute of Certified Public Accountants (Ireland) CPA Ireland: CPA/FCPA qualified;
  • Association of International Accountants (AIA): AIA/FAIA qualified;
  • Institute of Financial Accountants (IFA): FFA/AFA qualified;
  • Chartered Accountant (CA): CA qualified.

Intercompany Loan

This is acceptable for limited company lending subject to:

  • The majority shareholder to mirror across SPV and connected company.
  • Must be UK to UK company (no offshore companies).
  • Loan needs to be repayable, and a term agreed.
  • The loan term must not exceed that of the mortgage.
  • Rate of interest applied should be HMRC's 'Actual official rate' as a minimum.
  • Connected company not to have any interest or charge over our security.

A signed loan agreement must be provided which confirms that the loan is repayable, the term agreed, interest rate, monthly payment and that there is no interest or charge over the security property.

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.

Let to Buy (LTB)

Let to Buy situations may be considered. 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 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.

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

In all applications, personal guarantees will be required for all directors, subject to the company having a maximum of 4 qualifying directors.

Loan Amount

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 buy to let element.

Loan Purpose

We can consider loans for any legal purpose.

Loan Security

We offer first charge loans only.

First and second charge loans offered on additional security.

Refurbishment buy to let is offered on a first charge basis only.

Loan Term

Minimum term: 1 month

Maximum term: 12 months forregulated 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 FK1 to FK16 – 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%
Loans up to £1,000,000 75%
Standard bridging - regulated and non-regulated 75%
Tier 1 refurbishment - regulated and non-regulated 75%
Tier 2 refurbishment - regulated and non-regulated 70%
Maximum loan to purchase price of 90% - this is subject to the above LTV limits not being exceeded.

M

Maternity Leave

Applicants on maternity leave are acceptable. Where terms of employment are changing, e.g. reduction in hours, a letter from the employer addressed to the Group is required to evidence income confirming the following:

  • Salary and working hours before commencing maternity leave;
  • Return to work date;
  • Salary and working hours after returning to work;
  • Any changes to the applicant’s contract of employment.

Where the applicant is returning on the same terms, income will be assessed on pre-maternity salary evidenced by the 3 months’ payslips prior to maternity leave.

Minimum Property Value

Minimum value or purchase price is £75,000, or £100,000 in Greater London postcode districts.

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

Multi-unit properties minimum value or purchase price is £150,000 in Greater London and £50,000 elsewhere (applies to each unit).

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.
  • Available for non-regulated bridging finance and refurbishment buy to let.

Property:

  • Minimum valuation – £150,000 in London and £50,000 elsewhere (applies to each unit).
  • Maximum of 6 units within a single block or 4 units if converted from a commercial unit. 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

UK nationals are acceptable providing they have a 3 year UK residential history. EU citizens and foreign nationals from outside of the EEA must have been resident in the UK for the last 3 years and have permanent rights to reside in the UK.

A full three year residential history is required for all applicants.

All applicants must be resident in the UK at the time of completion.

  • UK Nationals that have resided abroad during the last three years can be approved by a discretionary mandate holder where:
  • A temporary, overseas posting has been necessary as part of their employment;
  • The underwriter is satisfied with the circumstances;
  • Sufficient credit records are available; and
  • The applicants are resident in the UK at the time of completion.

Non-UK Nationals must provide evidence of permenant rights to remain in the UK.

  • European Economic Area (EEA) Nationals may provide a valid permanent residence document or documents evidencing that "settled" or "pre-settled" status has been granted under the EU Settlement Scheme.
  • Non-EEA Nationals must provide evidence of permanent rights to remain in the UK.

Number of Applicants

Maximum of 4 applicants.

Limited company application – maximum 4 qualifying directors.

O

Offer Validity

Offers will be valid for 3 months from the valuation date. An offer extension may be considered on request from either a broker or a solicitor.

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. Anyone over the age of 24 will require independent legal advice.

P

Pension Income

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

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
  • 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, or owned by other companies of which the directors are a 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:

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

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

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. A “granny annexe” may be considered suitable, subject to the valuer’s comments.

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.

For details of unacceptable property types, click here.

Property Re-inspection

Where a re-inspection is necessary after the initial valuation is carried out, there will be a fee, please refer to our Tariff of mortgage charges.

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).

Projects that will take longer than 6 months to complete should use our standard bridging proposition.

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:

  • Landlords looking to change the use of a property to a small HMO with up to 6 bedrooms.
  • Landlords wishing to change the use of a garage to a habitable room.
  • 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.

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.

Properties where the proposed works require Permitted Development Rights (PDR) or would be classed as heavy refurbishment are not currently accepted.

Click here to access our Refurbishment Buy to Let guide.

Remortgage

We will accept remortgage applications 6 months after the original purchase date will be considered on an individual basis although any increase in value will require explanation.

Regulated Mortgage Contracts

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

Repayment Methods

  • Interest Only
  • Retained Interest

Restrictive Covenants

We are unable to consider any property that may have a restricted occupancy clause within the planning permission.

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.

Section 106 Planning Obligations

Section 106 planning obligations are accepted as detailed below:

A property that is subject to any planning or occupancy restrictions may be considered where the saleability is not detrimentally affected and any restriction is commensurate with property / location.

New build properties that are subject to Section 106 Planning Obligations are acceptable subject to no adverse comments from the conveyancer.

For any other planning obligation, please contact us.

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 2 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.

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

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 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.

Studio Flats

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

T

Tier 1 Refurbishment

This is suitable for properties where:

  • Building regulations are required.
  • There is no change to the overall use/nature of the premises.
  • Works are being completed under Permitted Development Rights.

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

  • Single properties deemed uninhabitable by long term lenders
  • Works to replace or update building components and non-structural alterations including redecorations, replacement of kitchen, replacement or creation of additional bathrooms, replacement of flooring, windows, roof cladding, electrical, heating and plumbing systems and non-structural alterations to accommodation layout, or other equivalent work as agreed by us
  • Properties currently at ‘wind and water tight’ stage that require completion.

Tier 2 Refurbishment

This is suitable for properties where:

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

Examples of when Tier 2 Refurbishment bridging finance could be used are:

  • Extensions.
  • Loft conversions.
  • Single unit to multi-unit.
  • Multi-unit to single unit.
  • Barn conversions.
  • Conversion of a commercial unit into a maximum of 4 flats.
  • Landlords looking to change the use of a residential property to an HMO with up to 10 lettable rooms.
  • Landlords looking to change the use of a residential property to a maximum of 6 flats. An acceptable new home warranty will be required.

Please note: Basement digs are not accepted.

Multi-unit properties currently at ‘wind and water tight’ stage that require completion.

Tenancy

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) from a minimum of 6 months and up to a maximum of 36 months.

Properties in Scotland must be let under a single short assured tenancy from a minimum of 6 months and 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.

Tenure

Freehold - acceptable for houses. Freehold is unacceptable 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. 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.

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.
  • Any property affected by Japanese knotweed class A or B. Class C and D are acceptable. Class C will require a satisfactory management plan in place.
  • Any property deemed unsuitable security by the valuer.
  • Any property where there is ongoing movement/monitoring is required.
  • Any property with spray foam roof void insulation.
  • 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).

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.

V

Validation

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:

  • Amiqus
  • CallCredit / TransUnion
  • Credas
  • Experian
  • Equifax
  • GBGroup
  • LexisNexis
  • Onfido
  • TrustID
  • Yoti
Supporting Documents (including Standard Declaration – both pages)

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

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.

Vulnerable Customers

We are committed to ensuring that our customers are supported, especially those with vulnerable circumstances. If a customer may require support or adjustments to be made, please contact us on 0800 116 4385 (option 1) to discuss what we can do to help.

If we identify that a customer may be vulnerable, we will contact you or the customer to gain a better understanding of the circumstances and what appropriate help we may be able to provide.

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 are required. Eligible income is the lower of the average pay from the last 3 months / last 6 months.

Opening hours

Monday - Friday: 9am - 5pm
Wednesday: 9:30am to 5pm
excluding bank holidays

Postal Address

Precise Mortgages,
2 Charter Court, PO Box 6037,
Wolverhampton, WV1 9QW.

Intermediary support

0800 116 4385

For intermediary use only
BBR 5.25%