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.