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Precise to launch lower fixes as swap rate markets react to Brexit

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  • 27/06/2016
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Precise to launch lower fixes as swap rate markets react to Brexit
Precise is set to launch a lower-priced fixed-rate range to take advantage of a fall in five and 10-year swap rates following the UK’s vote to leave the European Union.

The fixed rates will be added to first and second charge mortgages as well as buy to let, but pricing levels have yet to be finalised.

Managing director Alan Cleary (pictured) said from a consumer point of view Brexit meant better value for money when it came to mortgage costs.

“Swaps are pricing in another decrease in the Bank of England Base Rate. We could easily see a drop of 25 basis points in the next two weeks,” he added.

Cleary said while he is disappointed with the outcome of the EU referendum, which produced a vote of 51.9% in favour of leaving the EU, Precise has been planning for this eventuality.

He said: “We’re in a good place, our strategy will remain unchanged, and we have retail funding underpinning our liquidity which is reassuring because there is a lot of uncertainty in the capital markets which often leads to them freezing up.”

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