Precise cuts BTL price in market share push

by: Carmen Reichman
  • 03/08/2016
  • 0
Precise cuts BTL price in market share push
Precise Mortgages has cut the price on its houses in multiple occupation (HMO) and limited company buy to let (BTL) products in a bid to attract business.

The specialist lender reduced HMO rates by up to 0.60% per annum and limited company rates by about 0.55%.

It also introduced a new two year fixed rate at 2.79% with a 1.50% product fee, which will be available from L&G and Sesame Bankhall.

Precise had previously announced cuts to fixed-rate BTL and second charge products following the Brexit referendum in June, saying it wanted to take advantage of a fall in five and 10-year swap rates following the UK’s vote to leave the European Union.

The firm made the changes with immediate effect, saying it wants to strengthen its offering in the BTL sector and increase its market share.

The firm also refreshed its core range pricing and fixed-rate end dates among other changes.

Managing director Alan Cleary said: “Traditionally the summer months can see business levels soften but we want to increase our market share and have positioned our new buy to let range to achieve that objective.”

Sesame Bankhall head of relationship management Jane Benjamin added: “These new products should be attractive to landlords who are struggling to get a buy-to-let mortgage from high street lenders.

“At a time when many landlords are uncertain about how the recent tax changes will impact on them, as well as not knowing when the next interest rate change is likely to occur, the stability of a fixed rate, coupled with the lower product fee will make these products attractive to a wider range of customers.”

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