Precise Mortgages

Mortgage Type

Specialist BTL/Commercial

Property Value (min)

£50,000 or £150,000 in London postcode districts HMO minimum property value now £100,000, or £250,000 in London postcode districts

Advance (min)

£75,000 for Individuals & Limited Company
This includes single units, HMO's & Multi-units

Advance (max)

£3,000,000 to 60% LTV
£1,000,000 to 70% LTV
£750,000 to 75% LTV

HMO/Ltd Co: -
Maximum loan:
£1,000,000 to 70% LTV
£750,000 to 75% LTV

Term (Max)

35 years

Minimum Age

21 years No limit on the number of director dependant shareholders aged under 21

Maximum Age

80 years at time of application, cannot turn 81 before completion - 115 maximum age limit, 70 years for FTB FTL

Family Cash Gift Deposit

Yes - including Aunts and Uncles

Family Gift of Equity Deposit

No for gift of equity from family members Ltd Co: - Equity gifts accepted from personal to Ltd Company. (Director's loan) - unless the minimum deposit has been met. Example: - will allow a sale below market value but will base LTV on the lower of the 2 prices. E.g: If immediate family had a BTL worth £150,000 he could sell it to applicant for £100,000. then Precise will allow that but they would lend at 80% of the £100,000 and the 20% deposit would need to come from the clients own sources. Will also consider Directors Loan Account(DLA) for LTD Company where selling BTL to their own LTD Co.

Income (min)

No Min income however must be able to cover rent voids for 3-4 months based on EDI. No proof of income is usually required except where basic rate tax payer and then ONE piece ie latest payslip is required (nothing if buying through a LTD Co.). Min time in employment, 12 months continuous, 12 months trading if self employed including professional landlords. To qualify as a prof landlord clients need to own min 5 props (ring for exceptions). Bank statements are no usually required however if Tiers 2 or 3 then 3 months salary fed bank statements are required.

Restrictions

Will allow clearing of tax bills: -

- The bill must be repaid in full on completion including penalties
- Satisfactory explanation as to why not paid
- Copy of the latest tax bill.

Maximum of 20 buy to let loans per individual
5 @ 80% LTV and 5 @ 75% LTV
(including buy to let loans which the individual has
guaranteed), with Precise Mortgages up
to a combined value of £10,000,000.
Unlimited with other lenders.
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HMO Licensing: -
Any application for a HMO license required by the Local Authority, must have been made prior to completion.

Traditional BTLs must have owned a property (can be unencumbered in the last 18 months, otherwise classed as a FTB, this cannot include bridging or LTD Co. held BTLs). HMOs: Must have owned a BTL (no necessarily HMO) for min 12 months (can be property they are remortgaging)

75% LTV for FTB FTL
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30 sqm studio flat size minimum

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

Considered. Sub letting agreements direct with the council will not be accepted.

Ex-Local Authority Properties

Houses Max 80%, with adverse max 75%.
Flats and maisonettes not accepted.Exceptions can be considered where the following apply... Block in 100% private ownership, no balcony access in block, good curb appeal, standard construction.

Minimum years remaining on leasehold property

Minimum remaining lease term is 70 years at completion. Can extend lease on completion. In these circumstances key as lease will be and upload full notes on a word document to application when submitting

Minimum Ownership

6 months minimum ownership required before remortgage. No minimum ownership where property inherited or exiting a Precise bridge.
If property was converted from a Residential into a let property, it must have been owned for a minimum of 12 months prior to remortgage.

Permanent rights to reside and remain

Yes - can accept secondary applicant on spousal Visa but cannot use their income.

EU Citizens

Applications submitted from 1st January 2021 where the applicant is an EU citizen they must provide a valid permanent residence document or evidence that settled or pre-settled status has been granted under the EU Settlement Scheme. This can be in the form of a letter from the Home Office confirming their settlement status or a Residence Card.

Settled status is awarded to EU citizens that can evidence a minimum of 5 years’ continuous residence in the UK, whereas pre-settled status applies to those who have not resided in the UK for 5 years. Those awarded pre-settled statuses can apply for settled status once the 5-year residence requirement can be met.

Ex-Patriates

No

New Builds

New build flats and houses accepted to product max LTV

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Flats in blocks up to 20 storeys, with a commercial ground floor accepted

80% LTV available for buy to let new build houses and flats

S106 obligations considered

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

New Build flats with a commercial ground floor are considered

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 at AIP stage and then full credit search conducted on both Experian and Equifax at application.

Rental Calculation

Limited Company and HMO: –

Tracker products – @ higher of pay/revert rate + 2% (min 5.5%)

Higher rate and additional rate taxpayers calculated at 140%

Please visit BTL calculator at Precise BTL Calculator

Short-term fixed rates now assessed at pay rate plus 1.55% (minimum 5.50%)

Full description below of Precise Mortgages Criteria

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Lower Rate Tax Payer: –
Tracker products – 125% @ higher of pay/revert rate + 2% (min 5.5%)

60% on a 5yr + fix

FTB FTL – The lender performs 2 x affordability assessments. Earned income will be assessed and the applicant will also need to meet the minimum rental stress requirements

Background portfolio ICR which must be a minimum of 125% ICR at 5.7% pay rate and a maximum of 85% LTV

Interest Coverage Ratio (ICR) will be calculated between 125%-140% dependent on the applicant’s tax band and
individual circumstances.
Basic rate taxpayers 125%
Higher rate taxpayers 140%
Additional rate taxpayers 140%

Top slicing

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, earned income, or a combination of the two 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. Not available to first-time buyers or for remortgage applications.

Historic CCJ’s & Defaults

Defaults 0 in 72 months
CCJs 0 in 72 months
Missed mortgage/secured loan arrears 0 in 36 months
Unsecured arrears 1 in 12 months, 2 in 36 months (worst status) - must pass credit score.

Payday loans, will be considered at dip stage
No adverse accepted in the last 3 months.

Valuation Fees

Valuation fees paid direct to lender at the lender fee scales

Maximum number of applicants

Traditional BTL 2 - Ltd Co BTL's 4

Countries

Will lend in England, Wales and restricted postcodes in Scotland

Access

Access to Precise Mortgages is direct to lender with 3mc as your payment route, unless specialist products are to be used which is via 3mc as your mortgage packager

Missed mortgage payments

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

Property Type / Commercial

SPV Limited Company
Standard BTL investment properties such as a house or Flat
HMO's up to a maximum of 6 bed - can also consider HMO' with 6 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 of £10m.

Location

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

Type of Credit Search conducted at AIP stage

Soft foot print at AIP

Portfolio Landlords

Portfolio Landlords Accepted

Background Portfolio Requirements

– Background portfolio ICR which must be a minimum of 125% ICR at 5.7% pay rate and a maximum of 85% LTV.
– Click here to complete the online viability check

Portfolio Landlord Criteria

– Up to 20 mortgages with Precise Mortgages accepted – please see product guide
– No limit on the size of existing portfolio with other lenders

Additional Document Requirements

– Portfolio Schedule – All cases
– Business Plan – All cases
– Asset & Liability Statement – All cases
– Cashflow Statement – Not required
* Lender will accept client versions for all documents
NB – Portfolio assessment will be valid for 12 months to reduce requirements on subsequent applications providing there are no material changes.