Precise Mortgages Loans: What UK Borrowers Need to Know

Understanding Specialist Lending with Precise Mortgages

Navigating the world of specialist mortgages requires clarity and confidence. Precise Mortgages, a well-established UK lender, offers tailored home loan options for borrowers who don’t fit the standard profile. Here, we explore how their loans work and what to consider before applying.

Who Should Consider Precise Mortgages Loans?

These loans are designed for UK residents who may face challenges with high-street lenders—such as self-employed individuals, those with complex incomes, or borrowers with less-than-perfect credit histories. If you need flexibility or fall outside typical lending criteria, Precise Mortgages could be a valuable solution.

Key Terms and Core Concepts

• Specialist Lending: Unlike mainstream banks, Precise Mortgages focuses on applicants with unique circumstances, offering more nuanced underwriting.

• Adverse Credit: The lender may accept applicants with county court judgments (CCJs), defaults, or missed payments.

• Buy-to-Let (BTL): Precise Mortgages provides loans for property investors, including limited company and portfolio landlords.

• Bridging Loans: Short-term finance to bridge gaps, for example, when buying before selling.

• Second Charge Mortgages: Additional borrowing secured against your property, on top of your main mortgage.

The core advantage is flexibility—a willingness to assess the bigger picture of your financial situation, rather than relying solely on automated credit scoring.

Types of Loans Available

Precise Mortgages offers several specialist products:

• Residential Mortgages: For homebuyers or remortgagers who don’t meet standard criteria, such as those with irregular income or past credit problems.

• Buy-to-Let Mortgages: For individual landlords or limited companies, including those with complex property portfolios.

• Bridging Finance: Short-term loans for property purchases, refurbishments, or auction buys, typically repaid within 12 months.

• Second Charge Mortgages: Additional loans secured on your home, useful for raising capital without disturbing your existing mortgage.

Each product is tailored with different loan-to-value (LTV) ratios, interest rates, and terms. Flexible repayment options and a range of fixed or variable rates are also available, depending on your needs and eligibility.

Costs, Impact, and Risks

Interest rates for specialist lending can be higher than standard mortgages, reflecting the increased risk to the lender. Fees may include arrangement charges, valuation fees, and legal costs. It’s important to calculate the total cost over the loan term, not just the headline rate.

Borrowers should be aware that:

• Your home may be repossessed if you do not keep up repayments.

• Early repayment charges could apply.

• Bridging and second charge loans are short-term solutions and may not suit everyone.

A clear understanding of the full cost and your ability to repay is vital.

Eligibility Criteria and Requirements

Precise Mortgages assesses each application on its merits. Typical requirements include:

• UK residency and minimum age (usually 21+)

• Sufficient income, including self-employment or rental income

• Proof of address and identification

• Credit history—adverse credit may be accepted but subject to limits

• Property suitability (valuation and type)

Some products may require a higher deposit or equity, particularly for applicants with recent credit issues.

How the Application Process Works

1. Assess your financial situation and borrowing needs

2. Consult a mortgage broker familiar with specialist lending

3. Complete an initial enquiry or Decision in Principle

4. Submit a full application with supporting documents

5. Property valuation arranged by the lender

6. Underwriting and credit assessment

7. Mortgage offer issued if approved

8. Completion, with funds released via your solicitor

Pros, Cons, and Key Considerations

Pros:

• Greater flexibility on income and credit history

• Range of products for various needs

• Suitable for property investors and complex cases

Cons:

• Higher interest rates and fees

• More documentation required

• May not be suitable for mainstream borrowers

Consider the long-term financial impact, especially if opting for short-term or interest-only products.

Essential Checks Before You Decide

Before committing, review your ability to meet repayments under different scenarios, such as interest rate rises or changes in income. Compare offers from several lenders, and seek independent advice from a qualified broker. Read all terms carefully, especially regarding early repayment penalties and exit fees. If using a broker, ensure they are regulated by the Financial Conduct Authority (FCA).

Alternative Options to Consider

• High-Street Lenders: If your circumstances improve, mainstream banks may offer more competitive rates.

• Credit Unions: For smaller loans or community-based lending with favourable terms.

• Government Schemes: Help to Buy, Shared Ownership, or Right to Buy might offer alternatives for certain borrowers.

• Specialist Lenders: Other providers may offer similar products—compare terms and eligibility.

Always weigh up the options to ensure you select the most cost-effective and appropriate solution.

Frequently Asked Questions

What credit score do I need for Precise Mortgages? There is no fixed minimum; applications are assessed individually. Adverse credit may be accepted subject to product criteria.

Can self-employed applicants apply? Yes. Lenders will review your accounts, typically requiring at least 12 months’ trading history.

Are buy-to-let mortgages available for limited companies? Yes, Precise Mortgages supports limited company structures and portfolio landlords.

What is the typical loan-to-value (LTV) ratio? LTVs vary by product but can go up to 85% for residential and 80% for buy-to-let.

How long does the process take? Most cases complete within a few weeks, but timing depends on the complexity and property type.

Do I need a broker to apply? Applications are usually submitted via regulated brokers, who can assess your eligibility and secure the best terms.

What to Do Next

If you think a Precise Mortgages loan could suit your needs, start by speaking to a specialist mortgage broker. Gather your financial documents and clarify your goals. Comparing options and seeking professional advice ensures you make an informed, confident decision.

Disclaimer

This article is for informational purposes only and does not constitute financial advice. Mortgage products and eligibility requirements are subject to change. Always seek independent, regulated advice before making any financial commitments.