Precise relaunches bridging and second charge mortgages

Precise relaunches bridging and second charge mortgages

 

Each range is available up to 50 per cent loan to value (LTV).

In a message posted on its website today, Precise said: “Following government restrictions introduced to prevent the spread of Covid-19, we’ve been busy working on solutions for you and your customers while physical property inspections remain unavailable.

“We’re pleased to launch a set of products using AVMs for bridging finance and second charge loan applications.”

It asked brokers to understand that the lengthier process may result in cases taking longer to progress than normal.

Once the valuation has been reviewed by the underwriter and they are happy to proceed the case will be processed in the usual manner.

Valuation challenges cannot be accepted and the underwriter’s decision will be final, Precise added.

Last month Precise and its sister lender Kent Reliance recommenced residential and buy-to-let lending.

The pair stopped accepting new applications and put all cases which had not yet progressed to offer on hold at the end of March as a result of the coronavirus crisis.

 

Bridging

The bridging products are available for regulated and non-regulated applications in England, Wales and Scotland, for standard bridging only, not refurbishments.

The minimum loan size is £50,000 with the maximum at £375,000, while the minimum property value is £75,000 and the maximum is £750,000.

Rates are 0.54 per cent per month for net loan size less than £200,000, and 0.49 per cent for net loan size of £200,000 or more. A facility fee of two per cent applies to all transactions.

For already submitted applications at pre-offer stage, if the property is eligible for an AVM Precise will run the AVM to see if it is successful to enable the application to proceed.

Brokers should contact the lender if they have a pre-offer pipeline application over 50 per cent LTV and their client would like to reduce the loan amount to enable switching onto a new product.

All paperwork will need to be received before the AVM can be conducted.

Due to the unavailability of physical valuations, several property types are excluded. They are:

 

Second charge

Second charge loans are available for any purpose in England and Wales, with a minimum loan size of £10,000 and maximum of £200,000. Properties must be worth at least £75,000 and up to £750,000.

A two-year fix is available at 4.25 per cent and the five-year fix is 4.65 per cent – both have a £300 product fee, no early repayment charge and a 4.35 per cent reversion rate.

No defaults, county court judgements, mortgage or secured arrears are permitted in the last 12 months.

Unsecured arrears are not counted but may affect the borrower’s credit score, Precise noted, but bankruptcies, individual voluntary arrangements (IVAs) and debt management plans (DMPs) are not accepted.

It added that it may be possible to switch submitted applications at pre-offer stage with eligible properties to a new product and continue processing.

“If, after you’ve discussed suitability with your customer, you consider the product is appropriate, we’ll switch your application to a new product and request any outstanding documentation which you should provide as soon as possible,” Precise said.

Brokers should contact the lender if they have a pre-offer pipeline application over 50 per cent LTV and their client would like to reduce the loan amount to enable switching onto a new product.

 

Again, due to the unavailability of physical valuations, applications for some properties are excluded. These are: