Exclusive: Precise launches bridging product with guaranteed buy-to-let exit

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  • 16/08/2018
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Exclusive: Precise launches bridging product with guaranteed buy-to-let exit
Precise Mortgages has launched a refurbishment bridging loan which will convert to a standard buy to let once the property has been renovated.

 

Specialist Lending Solutions understands that the product is being piloted through a limited number of brokers before being rolled-out to the wider market.

The buy-to-let mortgage offer will remain valid for six months and underwriters will be available to help brokers throughout the process.

Interest can be rolled-up during the short-term lending and before the buy to let is generating rental income.

Bridging finance is available at up to 75% loan to value (LTV) with rates from 0.49%, minimum loans of £50,000 and no maximum and a 1.2% facility fee.

The buy-to-let products mirror selected two- and five-year fixed rate products from the lender’s current range, available up to 80% LTV with rates from 2.89%. The minimum loan is £55,000 with a maximum of £3m, or £1m for houses in multiple occupation (HMO).

Products are available for personal ownership, limited company, HMO and limited company HMO.

Precise told Specialist Lending Solutions that this was an ideal solution for property investors who were looking to improve property before renting it out.

It suggested the loan would be suitable for short-term internal refurbishment, such as renovation to meet an EPC rating and that it may help to increase the rental yield.

The products are currently available through limited distribution with 3mc; The BTL Club; Positive Lending; TBMC; Mortgages for Business; and Connect IFA.

The lender will look to widen out the distribution panel in due course, it added.

 

Will plug a gap

Earlier this month TBMC managing director Jane Simpson said there was significant demand from landlords for refurbishment finance and the market was under-served.

She told Specialist Lending Solutions that this Precise product would help to fill the gap.

“We are really excited to be on the pilot launch for this product and I think it opens a lot of doors to landlords,” she said.

“It looks really good rate wise, both on the bridge rate and the follow on buy to let.

“The criteria is also workable and I think it will really plug a gap,” she added.

Positive Lending chief executive Paul McGonigle said there had been a fantastic response to the offer with the broker enjoying a simplified process, competitive rates and a guaranteed product from day one.

“The professional investor benefits from potentially being able to withdraw their capital back from the project at the end of the refurb period by taking up to 80% of the new projected value,” he said.

“This solution is not offered in the mainstream market as many will lend on the original purchase price, and Precise Mortgages should be applauded for this innovation.”

 

Year-long pipeline

Earlier this year Precise Mortgage managing director Alan Cleary told Specialist Lending Solutions that the lender had a year-long product pipeline.

In March it launched interest-only and part-and-part payment options and this week it entered the holiday let market.

 

 

 

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