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Precise to launch into interest-only mortgages

Precise Mortgages is to launch into interest-only mortgage lending in the next few weeks.

The firm will lend up to 75% LTV on an interest-only basis and will require a repayment vehicle to repay the loan.

Precise currently lends up to 80% LTV on a capital repayment basis.

Alan Cleary, managing director at Precise, says the lender made the decision to move into the interest-only sector following research conducted with both borrowers and brokers.

He says: “A lot of people feel they are unable to obtain a mortgage for a variety of reasons so we are glad that conditions are favourable for us to launch interest-only products.”

The move comes after a number of high street lenders such as Lloyds Banking Group and Leeds Building Society have introduced restrictions to their interest-only criteria.

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  • Ancient Wisdom...is a mortgage broker in N3 30th June 2011 at 8:14 am

    ..surely returning to risky lending is not good for any lender?

    Unless Precise can match the rates being offered by high street lenders – they wont survive. The rates are pretty awful and dont even show up on the top quartile when we do research!

  • James 29th June 2011 at 12:36 pm

    It will be interesting to see what steps they take to physically ensure there is a suitable repayment vehicle in place – not just at application stage, but throughout the term of the mortgage.