Precise
Mortgage Type
ResidentialProperty Value (min)
£50,000 or £150,000 in London postcode districts
Advance (min)
£25,001, subject to product-specific minimum loan requirements.
Advance (max)
Up to £10,000,000 at 65% LTV
Up to £5,000,000 at 85% LTV
Up to £3,000,000 at 90% LTV
Up to £2,000,000 at 95% LTV
Debt consolidation available up to 90% LTV, subject to Precise's lending criteria.
Term (Max)
40 yearsMinimum Age
18 yearsMaximum 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.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)
Income multiples of up to 6x may be available, subject to affordability, internal credit assessment, product eligibility and Precise's lending criteria.Precise can consider a range of income sources and employment types.
Self-employed applicants may be considered using one year's figures, subject to Precise's current lending criteria and underwriting.
Affordability is assessed on an individual application basis.
Let to Buy (Turning Residential into Buy to Let)
Let-to-Buy applications may be considered subject to Precise's current lending criteria, affordability requirements and treatment of the existing property. Contact 3mc to discuss individual cases.As a guideline: -
In most 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
NoEx-Local Authority Properties
Houses - up to maximum product LTVNo 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.
Ex-local authority properties may be considered subject to property type, construction, valuation and Precise's current property criteria.
Minimum Ownership
As a guideline: 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.
Subject to Precise's current remortgage and minimum ownership criteria. Exceptions may apply in certain circumstances. Contact 3mc for case-specific guidance.
NOTE: RE Remortgages:
Remortgage applications are accepted, including pound-for-pound remortgages and remortgages with capital raising.
Capital raising may be considered for purposes including home improvements, business purposes, debt consolidation, purchase of land and Buy to Let deposits, subject to underwriting assessment.
Transfer of Equity applications may be considered as part of a remortgage.
Remortgages from bridging finance are acceptable.
Debt consolidation involving second charge loans may be considered. Remortgages with debt consolidation are acceptable up to a maximum of 90% LTV.
Not acceptable:
Remortgages where the property has been owned, or the existing mortgage has been in place, for less than 12 months, except for approved policy exceptions.
Help to Buy and Right to Buy debt consolidation cases.
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.Applicants are subject to Precise's current UK residency and eligibility requirements. Requirements may vary according to residency and immigration status.
Please contact 3mc to discuss applicants who do not have standard UK residency status.
New Builds
New build houses and flats are acceptable up to 90% LTV, subject to valuation and product criteria.Properties purchased off-plan are acceptable.
Where a builder incentive is present, lending can be considered up to 90% LTV, however any incentive amount must be deducted from the lower of the purchase price or valuation before calculating the LTV.
Builder part-exchange transactions may be considered subject to underwriter review.
A new build property is defined as a property that has never previously been occupied, including qualifying conversions.
Properties less than 10 years old must benefit from an acceptable warranty or professional certificate.
Not acceptable:
Reassignment of off-plan purchase contracts.
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New build properties are those that are less than two years old (from the date of practical completion) and/or have not been lived in.
Properties aged less than ten years, recently converted or occupied for the first time must benefit from one of the following:
ABC+
Advantage HCI
Ark Residential New Build Warranty
BOPAS (Build Offsite Property Assurance Scheme) (Modern Methods of Construction (MMC) only see section 4.11)
Build Assure
Building Life Plans
Build zone
CADIS
Checkmate (Castle 10)
Global Home Warranties
Home Proof
International Construction Warranties (ICW)
LABC
N.H.B.C. guarantee
One Guarantee
Premier Guarantee Scheme
Professional Consultants Certificate (previously an Architect’s Certificate). Detailed requirements are provided in section 6.7.4 of the UK Finance Lender’s Handbook. The issuing architect should have minimum professional indemnity insurance equivalent to the greater of £500,000 or the property value. Normally only acceptable on developments with up to 10 units; refer to Real Estate if higher.
Protek
The Q Policy
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.
Credit Score
Applications are subject to Precise's credit assessment, internal credit scoring and underwriting requirements - usually with Experian at DIP stage, with a hard search coming at application stage, across multiple credit reference agencies.Historic CCJ’s & Defaults
Customers with historic or recent adverse credit may be considered, subject to Precise's current adverse credit criteria, internal credit assessment, product eligibility and underwriting.Any defaults, CCJs or secured arrears recorded in the 3 months prior to application will result in a decline.
Maximum acceptable adverse:
Defaults are acceptable, but status will determine product availability.
CCJs are acceptable, but status will determine product availability.
Unsatisfied defaults and CCJs may be acceptable, but status and volume will determine product availability.
Missed or late payments are acceptable, but status will determine product availability.
Up to 1 in 12 months or 3 in 36 months (worst status).
Unsecured arrears are not counted but may affect credit score.
Bankruptcy, Administration and Liquidation events must have been discharged for a minimum of 6 years.
Applicant(s) who have been subject to forced repossession and voluntary possession proceedings are not accepted.
Applicant(s) considered to be 'worst status' on their credit file should see the product schemes for acceptable adverse profiles. Typical maximum mortgage/secured loan arrears 1 in the last 12 months and 3 in the last 36 months.
Applicant(s) with DMPs are acceptable subject to all of the following:
Active DMPs must have been active for a minimum of 12 months.
Maximum 85% LTV where a DMP remains active.
All applications are subject to internal credit scoring
Please contact 3mc for a case-specific assessment where adverse credit is present.
Valuation Fees
Valuation fees paid direct to lender at the lender fee scalesMaximum number of applicants
2Countries
Will lend in England, Scotland (Postcode permitting) and WalesAccess
Access to Precise Mortgages is through a selective panel of packagers, one of which is 3mcMissed mortgage payments
Historic secured credit arrears may be considered, subject to the recency and severity of the adverse credit and Precise's current lending criteria, credit assessment and underwriting. Missed or late payments are acceptable, but status will determine product availability. Up to 1 in 12 months or 3 in 36 months (worst status) - is Precise's stance on adverse credit payments.Property Type / Commercial
SPV / LLP Limited CompanyStandard 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 WalesType of Credit Search conducted at AIP stage
Soft foot print at AIPShared Ownership
No unless applicants purchasing the final shareRight to Buy (RTB)
Yes but houses only - up to 100% of the discounted purchase price.***********
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
Yes, up to 85% LTV - see product guide for range.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.
Forces help to buy - acceptable - monthly repayments will be included as a commitment.
Ex-Bankrupts
6 years from the date of discharge and off the credit fileIVAs
Over 6 years from date of registration and off the register completelyRepossessions
6 years from the date of repossession and all settledPayday 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 paymentRepayment Types
Capital and interest up to maximum LTV. Interest only - 75% 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 buyLenders completion fee
Can be addedAffordability
Affordability based - maximum of 5 x income, case dependentEmployment
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.Furloughed employees: - Can be considered; 80% of income to a maximum of £2,500, with the use of any evidenced employer top-up over and above this
Bonus: - Reviewed on a case by case basis. If acceptable we will take 50% of regular bonus / comission
Bounce back loans: - reviewed on a case by case basis. Not acceptable as a source of deposit.
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
Self-employed applicants may be considered using one year's figures, subject to affordability, credit assessment and Precise's current lending criteria.Changes in trading style may be considered subject to underwriting.
Additional evidence may be requested depending on the circumstances of the application.
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