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Precise Mortgages ups maximum buy-to-let loan to £3m

  • 09/06/2015
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Precise Mortgages ups maximum buy-to-let loan to £3m
Precise Mortgages is targeting high-net-worth landlords by upping the maximum loan size on some mortgages from £1m to £3m.

Landlords opting for products from the “exclusive” range can now borrow up to £3m on selected lifetime tracker products. Interest rates start from 3.8% and product fees range from 1% to 1.5%.

“Core” range products include lifetime trackers with a maximum loan of £2m, also up from £1m. Landlords can secure a rate of 3.69% with a 2.5% fee.

The rental cover required is 125% of pay rate or revert rate (whichever is higher). In the case of lifetime trackers pay rate and revert rate are the same.

These products are also available in the bridge-to-let range which allows them to be used as an exit to a bridging loan with Precise Mortgages.

Selected products are available via SPF Private Clients, L&G Nouveau Club and Knight Frank.

Alan Cleary, managing director of Precise Mortgages said: “Until now buy-to-let loans for over £1m were the preserve of private banks but now mortgage intermediaries have another option. Our lifetime trackers are very popular with high-net-worth landlords that have lower yielding properties in London Zones 1 and 2 where typical rental yields are 2.5%-4%; this product requires rental yields in the 2.7-3% range so should be a hit.”

Precise has also expanded its conveyancer panel by adding more than 120 new conveyancer firms, with the number planned to increase to 300 new firms in the coming months.

Lender Exchange has been chosen as Precises’s Conveyancer Panel Manager to ensure effective risk management.

“We carry out regular surveys with our brokers and borrowers to see what they want us to improve and this was top of their list. We have a number of improvements in the pipeline for the second half of 2015 too. We hope this will help us achieve our goal of being the intermediaries’ home for specialist lending,” said Cleary.

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