What is Precise Mortgages?
Precise Mortgages came to market in May 2010 and offer specialist lending for borrowers who struggle to meet strict lending criteria, initially as a result of the economic difficulties from 2008. Later, in 2014 Precise Mortgages became part of the OneSavings Bank group.
Precise Mortgages initially offered specialist lending for buy-to-let mortgage customers but soon expanded to offer residential mortgages and bridging finance.
Applications for Precise Mortgages can be made directly to the lender or through a panel of brokers. An independent mortgage broker with access to the whole market of borrowing options can be the best way to check that you are getting the best mortgage deal for your needs - Habito* has access to the whole market and will guide you to the best lender for your particular circumstances.
Precise Mortgage key features
- Part of the OneSavings Bank group
- Residential, buy-to-let and bridging finance products
- 2, 3, 4 and 5 year fixed rates available
Precise Mortgage pros and cons
| Pros | Cons |
 Precise Mortgages offers lending for buy-to-let purchases from a first investment property to multiple properties and HMOs
|
 Higher interest rates due to capacity for adverse lending
|
What types of mortgage does Precise offer?
Precise Mortgages offer mortgages for movers, first-time buyers and those remortgaging on residential or buy-to-let properties. Precise Mortgages also provide a bridging finance option for mortgages. Borrowers can choose between 2, 3, 4 and 5 year fixed deals for most mortgage products and a reversion rate that is currently 6.35%.
Repayment, interest-only as well as part and part mortgages can be arranged with Precise Mortgages
Tracker rates are available for some buy-to-let mortgage deals and the bridging finance options include LTV options of between 50% and 75% with a maximum bridging loan term of 18 months.
How much can I borrow with Precise Mortgages?
The amount you can borrow through Precise Mortgages varies depending on whether you apply for a residential, buy-to-let or bridging finance mortgage. The amount that you can borrow will also depend on your income although there are maximum limits based on the Loan To Value (LTV) which for residential mortgages is £1m on a 70% LTV. The minimum loan amount for residential and buy-to-let mortgages with Precise is £25,001 and £50,000 for bridging finance.
What is the maximum loan size and loan-to-value (LTV) with a residential Precise mortgage?
| LTV | Maximum loan size |
| Up to 70% | £1m |
| 71-80% | £750,000 |
| 81-85% | £500,000 |
Interest-only products are available on a maximum LTV of 65%.
What is the maximum loan size and loan-to-value (LTV) with a buy-to-let Precise Mortgage?
| LTV | Maximum loan size |
| Up to 60% | £3m |
| 61-70% | £1m |
| 71-75% | £750,000 |
| 76-80% | £500,000 |
What is the maximum loan size and loan-to-value (LTV) for Precise Mortgage bridging finance?
| LTV | Maximum loan size |
| Up to 60% | £2m upwards |
| 70-75% | £1-2m |
There are no maximum limits when it comes to the amount that you can borrow for bridging finance purposes with Precise Mortgages. However, the maximum that you can borrow when using the bridging finance option for a refurbishment buy-to-let is £3m and this reduces to £1m for houses with multiple occupancies (HMO). The maximum loan-to-value possible is 90%.
What interest rates do Precise Mortgages charge for residential mortgages?
The interest rates available with Precise Mortgages will change regularly so it is best to check these but we have indicated some of the rates available at the time of writing below. Mortgage brokers like Habito* can search around for the best rates for your particular circumstances and may even be able to access rates that are not available directly for mortgage customers.
- 2-year fixed rate up to 75% LTV at 6.59% with a product fee of £995
- 5-year fixed rate up to 80% LTV at 6.89% with a product fee of £995
- 2-year fixed rate buy-to-let up to 75% LTV at 5.39% with a product fee of 2%
Once the fixed deal expires Precise Mortgages reversion rate is 6.25%. You should compare rates across the market before making your decision - use our Mortgage rate comparison tool to get the most competitive and current mortgage rates available.
How strict is Precise Mortgages?
Precise Mortgages is a specialist lender which means that it is more flexible than high-street lenders and may prove less strict when it comes to non-standard mortgage applications. Precise Mortgages acceptance rates are likely to be higher for those with adverse conditions when compared with a high street lender and this is reflected in the slightly higher interest rates they charge.
What fees does Precise Mortgages charge?
Product fees that are usually payable in addition to valuation and conveyancing costs can vary from £0 upwards and most Precise Mortgages products charge around £995 for the product fee while buy-to-let options charge 2% upwards as a fee.
Valuation fees start at £370 for a mortgage of £100,000 going up to £975 for one that is £1m, both for residential and buy-to-let mortgages. Many of Precise Mortgages' residential mortgage deals allow up to £630 to be refunded in valuation fees and there is an application fee of £180 payable regardless of the outcome.
Can you make overpayments with Precise Mortgages?
Precise Mortgages does not allow borrowers to make overpayments against their mortgage balance. Unlike other lenders, there is no allowable limit to what you can overpay during the mortgage deal period. The charges for making an overpayment vary depending on which year of your deal you are in when you do so and we have outlined these below.
Precise Mortgages early repayment charges - residential mortgage
| Initial fixed term | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
| 2 years | 4.00% | 3.00% | |||
| 3 years | 4.00% | 3.00% | 3.00% | ||
| 4 years | 4.00% | 4.00% | 3.00% | 3.00% | |
| 5 years | 4.00% | 4.00% | 3.00% | 3.00% | 2.00% |
Precise Mortgages early repayment charges - buy-to-let mortgage
| Initial fixed term | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
| 2 years | 4.00% | 3.00% | |||
| 3 years | 4.00% | 3.00% | 3.00% | ||
| 5 years | 4.00% | 4.00% | 3.00% | 3.00% | 2.00% |
What is the maximum mortgage term with Precise Mortgages?
Precise Mortgages allows a mortgage term of up to 35 years so long as the applicant does not exceed the age of 70 during the term. In some cases, borrowers can take a mortgage up until age 75 but the applicant's retirement plans must indicate a retirement age in line with this. For non-contributing applicants, the maximum age at the expiry of the mortgage is 80 years old.
How does Precise Mortgages check your credit rating?
Initially, Precise Mortgages will carry out a credit search using Experian to provide the borrower with an agreement in principle. Once you apply for a mortgage, it will use the credit agencies Experian and Equifax to carry out a full search of your credit history. Lenders generally carry out such credit searches to determine how you manage your financial affairs and to vet your reliability before lending money to you. Different lenders use various credit reference agencies, including Experian, Equifax and TransUnion. It is a good idea to check your full credit report prior to submitting an application to ensure that there are no errors or omissions on your record. You can write to the agencies to have these updated or corrected if needed.
Does Precise Mortgages offer mortgages to people with bad credit?
It is possible to get a mortgage with Precise Mortgages if you have been declined elsewhere as it has a higher threshold for acceptance. Mortgage applicants who have missed payments, County Court Judgements (CCJs) and Debt Management Plans (DMPs) may be accepted by Precise Mortgages as long as their adverse credit history falls outside the following parameters:
- 3 CCJs in 24 months
- DMPs that are active or were satisfied within the last 36 months
- 1 mortgage or secured loan arrears in the last 12 months or 3 in the last 36 months
- IVA, bankrupcy and debt relief orders discharged 6 years ago or more
- 5 defaults in 24 months
Precise Mortgages customer reviews
Precise Mortgages scores 3.7 out of 5 stars on independent customer review site, Trustpilot where it has received over 3,000 reviews. Over 70% of the reviews awarded Precise Mortgages 5 stars and many of these include positive remarks about the speedy customer service and flexibility to gain positive outcomes. Less than 10% of reviews awarded Precise Mortgages 1 star citing delays in communication and general issues around customer service.
Summary
Precise Mortgages is a good lender for those who have complex needs when applying for a mortgage and is particularly good for landlords looking to finance buy-to-let properties. The rates offered by Precise Mortgages are higher than those offered across the rest of the market but this reflects the specialist nature of their offering.
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