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Precise Mortgages

Precise Mortgages

Mortgage Type

Residential

Property Value (min)

£50,000, except London £150,000

Advance (min)

£25,001

Advance (max)

£2,000,000 on Large Loan Range up to Max LTV
£1,000,000 to 70% LTV
£500,000 to 80% LTV
£300,000 to 85% LTV Max 85% + Lender fees for all allowable property types

Term (Max)

35 years

Minimum Age

21 years

Maximum Age

70 years or 75 upon referral at DIP stage. The retirement age must be keyed as 75 and a note uploaded at DIP stage into the case confirming that the employers will confirm the clients ability to work to age 75. **** Second applicant max age 85 however to qualify the second applicant must be keyed as 'not working'

Family Cash Gift Deposit

Yes - they require a letter stating no repayment will be made. Precise will accept all gifted deposits monies from immediate family members, this can include step family, aunts and uncles - acceptable for FTB and subsequent buyers. Money must be a transparent gift that has originated in the EU and can be easily traced back to the originating source. Where a proportion (max 50% originates from outside the area and is from a non conflict area, Precise may consider on a case by case basis)

Family Gift of Equity Deposit

No - Where the client is purchasing at a sale of undervalue, can consider as long as they are contributing a minimum of 15% in addition to the discounted purchase price. This additional deposit cannot come from the vendor. They will require a gifted deposit letter to show this in all instances.

Income (min)

Min income £15000 for main applicant's primary income. Employed Primary income can be made from basic salary + 50% Commission/bonus/OT (key 100% into DIP). Monthly take average of last 3 months payslips. Quarterly or Annual - avg of last 2 years P.60. shift allowance - refer or key into the bonus section. 100% Car Allowance.100% Large town allowance

Additional income (ie once £15k achieved) can also accept:
100% Working/Child tax credits to max age 14yrs 11months. If joint application but show both applicants on award letter
50% CSA or Court order Maintenance (Do NOT key child benefit)
100% Pension income including state
50% Secondary jobs (max 60 hrs between all jobs)

Contractors. Umbrella companies or where the customer is paying their own tax and/or national ins will be treated as self employed. If Fixed term then will treat as employed and can be clients first contract as long as 12 months continuous min 6 months in same type of job. If less than 6 mths to run then letter of intent to extend is required.
Zero contracts are NOT acceptable.

Self Employed
Can consider up to ONE years figures regardless of how long trading up to 85% + lenders fee. Over 75% is subject to score so key one year, it will refer (check back in 2 hrs) if decline, then reduce to 75% LTV or copy DIP and add 2 years figures (then can consider up to 5 x income). Precise will work off the average or last year whichever is the HIGHER.
Proof of Self employment:
HMRC Tax Calc + Overview OR SA302 + Overview OR Accounts

for Directors add together for total income 100% of: Salary + Dividends + Co. Car allowance + pension Contribution = Total that you key into the DIP

Changes in trading style ie Sole to LTD Co treated as continuous self employment

NOTE: underwriters reserve the right to ask for further information where necessary

Let to Buy (Turning Residential into Buy to Let)

In all circumstances for LTBs Precise will require a simultaneous completion OR the client will need to have moved out and rented the existing property for min 3 months. The client must be on the voters roll at their new residence and proof of 3 mths rent via bank statements and AST will be required. Max 80% LTV for either refinance on to a BTL or onward purchase. Precise can consider both or either transactions. Where only the onward purchase then 'consent to let' from the previous lender will be required

DWP Tenants

No

Ex-Local Authority Properties

Houses - up to maximum product LTV (85%).

No Flats/Maisonettes. Exceptions can be considered where the following apply; Block must have majority in private ownership, no balcony access in the block, good curb appeal and of standard construction.

Minimum Ownership

12 months minimum ownership before remortgage.
****
No Min ownership applies to properties that have been inherited and probate has been granted (Probate letter will be required on application) and also when exiting a Precise Bridge. In these instance key the DIP as per Precise's min ownership and upload a word document with full notes into the case
****
FTB definition is someone who has not owned a property for 18 months.

Permanent rights to reside and remain

Yes - Non EEA Nationals must have been resident in the UK for the last 3 years and have permanent rights to reside in the UK.

New Builds

90% - New build houses and flats (including 5% builder incentive) + lender fees
****
Flats in blocks up to 20 storeys, with a commercial ground floor accepted.

Can consider 30 SQM Studio flats.

85% LTV available plus up to a 5% builders incentive on residential lending

S106 obligations considered

Mortgage offers valid for six months from the date of issue, if required we may extend for a further three months

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
Crest Nicholson
Galliford Try
Persimmon
Redrow
Taylor Wimpey
If the property was constructed within the last 10 years it will need to benefit from one of the
following warranties:
Advantage HCI
Aedis Warranties Ltd
Building Life Plans
Buildzone
Checkmate (Castle 10)
CRL Management Ltd
International Construction Warranties (ICW)
LABC
N.H.B.C. Guarantee
Premier Guarantee Scheme
Professional Consultants Certificate
Protek
Zurich Municipal “New build”

Credit Score

Yes - Experian only

Historic CCJ’s & Defaults

Dependent on product plan:-
Up to 5 DF + 3 CCJs in last 24 months (0 in 3), no max value to the DF/CCJs ie £68k DF 6 months ago considered. They do not need to have been satisfied and are not usually included in the affordability calculation. Over 24 months ignored for the purpose of underwriting.

Valuation Fees

Valuation fees paid direct to lender at the lender fee scales

Maximum number of applicants

2

Countries

Will lend in England, Scotland (Postcode permitting) and Wales

Access

Access to Precise Mortgages is through a selective panel of packagers, one of which is 3mc

Missed mortgage payments

Missed Mtg/Secured Arrears 0 in 12, Max 1 in 36 months.

Property Type / Commercial

SPV / LLP Limited Company
Standard BTL investment properties such as a house or Flat
HMO's up to a maximum of 8 bed - can also consider HMO' with 8 beds with 2 kitchens

Portfolio limit for landlords of up to 20 properties allowed with Precise Mortgages. For properties 11 - 20 LTV is capped at 70% and maximum exposure remains at £5m.

Location

Will lend in England, Scotland (Postcode permitting) and Wales

Type of Credit Search conducted at AIP stage

Soft foot print at AIP

Shared Ownership

No unless applicants purchasing the final share

Right to Buy (RTB)

Yes but houses only - up to 100% of the discounted purchase price.
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The customer:
Must have been a tenant of the council or housing association for a minimum of 3 years (does not have to be consecutive)
Must have settled any rent arrears within 4 weeks of the landlord requesting payment

The property:
The landlord will determine the value of the property. Any disputes about valuation must be settled before a mortgage application is made
Discount is determined by length of tenancy
Maximum discount is capped at £77,900, £103,900 for properties in London.
Must be of standard construction, no concrete including wimpey no fines & Laing easiform

Debt Management Plan

Current Debt Management Plans considered up to 85% LTV. DMP no longer has to be cleared on completion. Where the clients do not wish for the DMP to be cleared the DMP monthly payments MUST be keyed into the commitments section of the DIP

DMP satisfied within 36 months considered up to 85% LTV (DMP Satisfied over 36 months ago ignored)

ONLY where the DMP is still active must it have been running for 12 months.

DMP must have been running for a min period of 12 months.

DMP conduct reference only required on active DMP accounts.

Conveyancers will be required to clear any outstanding DMP on completion (not the customer) and they may charge for this facility. (Goldsmith Williams have agreed £25 per item, max £250). Unless DMP is remaining

NB - The client(s) for the DMP product must provide THEIR OWN up to date credit report on application submission.

Any DMP cases satisfied or still active in the last 3 years, cannot be submitted until we have the full packaging requirements PLUS:

Client versions of Equifax & Experian
List of DMP debt
Last 12 months DMP statement or reference where the DMP is still active.

Cases forwarded without this information CANNOT be assessed until it has been received.

DMP 12 month conduct ONLY required on active DMP's - regardless of when satisfied

Help To Buy (Shared Equity)

Only available on New Build Properties - A Government funded equity loan of up to 20% of the purchase price is acceptable.
Applicant will need to provide a minimum 5% deposit from their own resources.

Payments will be required on the Shared Equity loan after five years in addition to the repayments on the loan the customer takes with Precise.

For further information on the Help to Buy shared equity loan scheme, applicant(s) should go to https://www.gov.uk/affordable-home-ownership-schemes/help-to-buy-equity-loans for more information.

Scottish based properties are also considered, please see separate product guide for Scottish range.

Ex-Bankrupts

6 years from the date of discharge and off the credit file

IVAs

Over 6 years from date of registration and off the register completely

Repossessions

6 years from the date of repossession and all settled

Payday Loans

Can consider, even in last 12 months. Must not show in the last 3 months bank statements and if in last 6 months and a purchase, would want to see healthy bank statements ie no living in overdraft and saving new mortgage payment

Repayment Types

Capital and interest up to maximum LTV. Interest only - 65% LTV, not available on Help to buy or right to buy. Part & Part up to 75% LTV (Interest only element must not exceed 50% LTV) Available on Tier 1 and 2 only. Repayment vehicles allowed:- Sale of Security (must have £150,000 of equity) Sale of additional property Savings / Investments Pension - Interest only NOT available on Right to buy or Help to buy

Lenders completion fee

Can be added

Affordability

Affordability based - maximum of 5 x income, case dependent

Employment

Minimum 3 months in current job with 12 months continuous employment. Can consider less than 3 months if same line of work and no probationary period.. Max 4 weeks between jobs in last 12 months.

Second jobs can be used (50% income taken but key 100% into DIP). Max hours between all jobs 60 hours and must have 12 months continuous employment 12 in second job as well.

Contractors. Umbrella companies or where the customer is paying their own tax and/or national ins will be treated as self employed. If Fixed term then will treat as employed and can be clients first contract as long as 12 months continuous min 6 months in same type of job. If less than 6 mths to run then letter of intent to extend is required.
Zero contracts are NOT acceptable.

Self Employed

Can consider up to ONE years figures regardless of how long trading up to 85% + lenders fee. Over 75% is subject to score so key one year, it will refer (check back in 2 hrs) if decline, then reduce to 75% LTV or copy DIP and add 2 years figures (then can consider up to 5 x income). Precise will work off the average or last year whichever is the HIGHER.
Proof of Self employment:
HMRC Tax Calc + Overview OR SA302 + Overview OR Accounts

For Directors add together for total income 100% of: Salary + Dividends + Co. Car allowance + pension Contribution = Total that you key into the DIP

Changes in trading style ie Sole to LTD Co treated as continuous self employment

NOTE: underwriters reserve the right to ask for further information where necessary

Share of Dividends 100%
Share of Directors remuneration 100%
Share of directors car allowances 100%
Share of directors pension contributions - Can add the director's pension contributions to calculate gross income
Share of use of home as office - Can add a proportion of this to calculate gross income based on the directors shareholding
Share of private health insurance - Can add the directors contributions to calculate their gross income
Share of spouse's income (sole app) - Can add a proportion of this to calculate gross income based on the directors shareholding
Operating profit No
Retained net profit No