The loan is available to individuals and limited companies.
The 60-month minimum term exempts the loan from the Prudential Regulatory Authority’s rules on the affordability, requiring all landlords to submit to a full income and affordability test.
Loans start from a minimum of £350,000 and are offered up to £3m to 75% loan to value with a 2% fee.
Rachel Geddes, business principal, Mortgage Advice Bureau in London said: “The launch by Precise of their 2.99% pay rate assessed five-year fix would appear to be a move designed directly to disrupt the current buy-to-let lending market, and could well herald a change in approach from other lenders who may also be looking to grab market share.
She added: “While the rate is higher than other buy-to-let products available and there is of course the 2% fee to consider, this could be the silver bullet that investors in the London market have been looking for.”
Clearly Precise has understood the plight of landlords who want to secure finance and this product, which can be used by either individuals or limited companies, is sure to prove a popular choice for those who meet criteria, added Geddes.
Alex Smith, senior mortgage and insurance adviser at Capricorn Financial Consultancy said: “It’s a good product that should work well for London property where yields struggle. Hopefully Precise will match this with good service to manage the influx of business it could provide.”