Precise stops offering interest-only on homeowner range

Precise Mortgages has decided to stop offering an interest-only option on its homeowner range due to low take up.

The intermediary-only lender still offers an interest-only option on its buy-to-let and bridging ranges.

It says only 3 per cent of new business in its homeowner range is on an interest-only basis, and therefore the lender feels it is not “commercially viable”.

Precise Mortgages managing director Alan Cleary says: “While interest-only mortgage loans are suitable for some borrowers it is not our target market and the low take up of this option confirms that.”