Precise Mortgages is launching its first product range for home owners today.
The range starts with a three-year capped tracker with an initial rate of 4.99% for 70% LTV.
All products will carry a product fee payable on completion of 1.5%, minimum £2295.
All products have a three-year cap at 3% above pay rate giving borrowers some protection against rate rises.
The launch follows Precise Mortgages’ recent approval by the Financial Services Authority to provide financing to home owners.
The products will only be available on a capital and interest repayment basis and are limited in size and to certain property types.
Ian Lonergan, chief executive officer of Precise Mortgages, says: “Many borrowers have been excluded from the mortgage market as high street lenders have moved towards ‘super prime’ borrowers; our range of products is designed to help these disenfranchised borrowers.
“Precise Mortgages is completely focused on writing good quality responsible mortgage loans. Bringing new funding will make a positive difference to the UK market, and as we prove the quality of our lending we hope to be able to increase the volume of lending.”
Precise Mortgages is applying rigorous income and affordability tests including proof of income validated on 100% of cases, an affordability stress test to 2% above the reversionary rate helps to ensure borrowers have strong affordability even if rates rise.
All products are three-year capped trackers with a cap of 3% above current interest rate protecting borrowers against rate rises of more than 3% for a period of 3 years.
Precise will not sell interest-only loans, it will require a minimum 20% deposit and will have its own controlled intermediary, valuation and solicitor panels to combat fraud.
Alan Cleary, managing director of Precise Mortgages, says: “Our launch range brings new choice to a market that has been starved of funding in recent years.
“Similar underwriting criteria can be found on the high street and whilst our lending approach is equally responsible and rigorous, our difference is that we have a new dedicated source of funding for borrowers who can prove their income and affordability, but are being squeezed off the high street currently.”
Nigel Stockton, financial services director at Countrywide, says: “I am sure Precise Mortgages will become a natural partner to the intermediary market with their focused range and excellent service.”
Precise currently distributes its products through 3mc, Legal & General Mortgage Club, Mortgages for Business, Mortgage Force, Mortgage Intelligence, Mortgage Next, PTFS, PMS®, and TBMC.