This month, the Prudential Regulation Authority (PRA) and Financial Conduct Authority (FCA) said lenders that completed less than £150m in residential lending over four consecutive quarters could lend more than 15% of their books at above 4.5 times income, up from £100m, and allowed lenders to apply for permission to do the same on an individual basis, regardless of lending volume.
In the Mansion Speech on 15 July, Chancellor Rachel Reeves said the cutting of financial red tape would support 36,000 more first-time buyers over the next 12 months.
Precise will not restrict six times income lending to professions, and will consider borrowers as long as they meet the lender’s internal credit score and affordability assessments.
Precise’s residential mortgage rates start from 4.77% up to 95% loan to value (LTV), include borrowers with adverse credit and are available to the employed, self-employed, joint borrowers, first-time buyers and homemovers.
Adrian Moloney (pictured), intermediary sales director at OSB Group, said: “Precise has consistently supported the specialist residential market and this latest increase to LTI multiples follows a number of positive changes that have been made this year.
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“These changes include increased affordability calculations (average of 9%), reduced stress rates to 1.25% as well as LTV now up to 95%, which means we’re able to support even more customers with affordability challenges.
“To illustrate what this means in real terms, if a couple’s joint income was £80,000 at the start of the year, they had the potential to borrow up to £400,000 at 85% LTV (subject to eligibility), but from today, that same couple could access up to £480,000 at 95% LTV, giving them an uplift of over 20% with smaller deposit requirements.”
