Online Criteria Guide

All criteria applies to long term and second charge lending unless otherwise stated
 
 
 

Please select relevant criteria here

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

What's New

  • Specialist Prime product range exclusively available through our Premier Packager Panel.
  • Debt Management Plans accepted as an ongoing commitment on selected products.
  • Dedicated Right to Buy product range available.

A

Adverse Credit

Residential Mortgages

Residential Second Charge Loans

Residential Mortgages

Precise Mortgages allows a certain amount of adverse credit with levels being dependant on the product chosen. As a guide our maximum adverse allowed is:

Defaults: 5 in 24 months
CCJs: 3 in 24 months
Mortgage arrears: 1 in 12 months, 3 in 36 months (worst status), 0 in last 3 months
IVA and bankruptcy: Must have been discharged for 6 years
Repossessions: Are not accepted
Debt management plans: Specific product range available.

Please be aware that further restrictions may apply, depending on the product chosen. See relevant product guide for further details.

Residential Second Charge Loans

As a guide our maximum adverse levels on a Second Charge Loan are:

Defaults: 2 in 12 months, 0 in 3 months (maximum total value of £5,000)
CCJs: 1 in 12 months, 0 in 3 months (maximum total value of £3,000)
Mortgage arrears: 1 in 12 months (worst status), 0 in last 3 months
IVA and bankruptcy: Must have been discharged for 6 years
Repossessions: Are not accepted
Debt management plans: Acceptable if active for over 12 months and no missed payments

Please be aware that further restrictions may apply, depending on the product chosen. See relevant product guide for further details.

Age

Residential Mortgages

Residential Second Charge Loans

Residential Mortgages

Minimum age 21 at application and maximum age 70 at the end of the mortgage term, providing this is within the stated retirement date.

We may consider applicants up to age 75 upon referral, this will be subject to underwriter review and stated retirement date. Maximum age of 85 for non-contributory applicants.

Residential Second Charge Loans

Minimum age 25 at application and maximum age 70 at the end of the mortgage term, providing this is within the stated retirement date.

We may consider applicants up to age 75 upon referral, this will be subject to underwriter review and stated retirement date. Maximum age of 85 for non-contributory applicants.

Agency Workers

Unfortunately we are unable to accept applicants who are currently employed by an employment agency.

Annual Bonus

An annual bonus can be included as part of a customer’s total income providing this is regular and two years' verification can be provided. Please note that we will only include 50% of any bonus in our affordability assessment, however the full amount should be keyed in the online application.

B

Builder’s Deposit

Residential Mortgages

A Builder’s Deposit is only acceptable on New Build purchases, up to 5% cash based incentive is acceptable (i.e. stamp duty, legal fees, cash back, mortgage payments). Any incentive amount over this will be deducted from the lower of the purchase price/valuation before calculating the LTV. The Builder’s Deposit should be detailed on the Disclosure of Incentives form.

Builder’s Second Charge

Residential Mortgages

A Builder’s Second Charge is acceptable providing the customer has a 15% deposit from their own funds. Repayments will be taken in to account for affordability.

Building Warranty

New Build properties and properties less than 10 years old will need to benefit from an acceptable building warranty provided by one of the following:

  • Advantage HCI
  • Aedis Warranties Ltd
  • Building Life Plans
  • Buildzone
  • Checkmate (Castle 10)
  • CRL Management Ltd
  • International Construction Warranties (ICW)
  • LABC
  • N.H.B.C. Guarantee
  • Premier Guarantee Scheme
  • Professional Consultants Certificate
  • Protek
  • Zurich Municipal “New build”
 

C

Certification

All documents submitted to Precise Mortgages in support of an application will need to be certified by a suitable representative of the introducing broker or intermediary company. The name of the certifier and their position within the company should be clear on the certification.

Documents containing a photograph of the applicant will need to be certified as ‘true copy of the original’ and ‘true likeness of the applicant’ (unless the applicant has not been seen face to face). All other photocopied documents must be certified with the words ‘true copy of the original’.

ID and residency documents must be certified individually.

Click here to download a copy of our Document Certification form.

For further details please see our Anti Money Laundering Guidelines.

Child Benefit

Unfortunately we are unable to accept Child benefit as an income source.

Child Maintenance

We can consider 50% of maintenance as an additional income source. This must be via a court or child support agency order and have a minimum of 3 years left to run.

The full amount should be included on the application.

Commercial Property

Live/work units or any property where commercial usage exceeds 20% will not be accepted.

Flats above or adjacent to commercial premises may be considered on an individual basis.

Commercial Usage

Home office usage is acceptable providing that this does not involve clients being seen on the premises on a regular basis. For any other form of commercial usage, please contact use for further information.

Construction

We accept properties of Standard and Modern Methods of Construction (MMC).

The following methods of construction are not considered acceptable:

  • Any property of Easiform construction.
  • Any property containing mundic concrete.
  • Any property containing no-fines concrete.
  • Flats or maisonettes in blocks exceeding 20 storeys.
  • Grade 1 listed buildings in England and Wales / Grades A and B in Scotland.
  • Mobile homes and houseboats.
  • Properties constructed with high-alumina cement, timber framed property with no brick skin or 100% steel or timber framed property.
  • Property designated defective under Part XVI Housing Act 1985, Housing (Scotland) Act 1987 or Pre-Cast Reinforced Concrete (PRC) property (irrespective of whether repaired under a licence repair scheme).
 

D

Debt Management Plans (DMP)

Residential Mortgages

Residential Second Charge Loans

Residential Mortgages

For DMPs satisfied over 36 months ago standard lending policy will apply.

For DMPs satisfied within the last 36 months we will require confirmation from the provider the date the DMP was satisfied and that it was repaid in full.

Active DMPs do not have to be satisfied on completion but must be included as a monthly commitment on the application. We will require a DMP reference from the provider to include:

  • Date of agreement
  • Amount outstanding
  • Details of all creditors including lender. Account number, payment and balance
  • Confirmation that the last 12 months’ payments have been on time

Please see our DMP pack for further information.

Residential Second Charge Loans

DMPs are acceptable providing they have been active for over 12 months and no payments have been missed.

Deposit

The deposit should come from the applicant’s own funds and have originated within the EEA. We will also accept the following sources of deposit:

  • Help to Buy
  • Forces Help to Buy
  • Family gifts
  • Remortgage or secured loan on an existing property owned by the applicant
  • Builder’s Deposit (New Build only)
  • Builder’s Second Charge

Diplomatic Immunity

Applicants with diplomatic immunity from UK law will not be accepted.

 

E

Employment

Employed

Applicants must be in permanent employment that is not subject to a current probationary period. Applicants must have been in their current job for a minimum of 3 months with 12 months continuous employment.

Applicants on a fixed term contract basis are acceptable but if there is less than 6 months remaining on the contract confirmation of renewal may be required.

Agency workers and zero hours contracts are not acceptable.

If an applicant has a shareholding of over 25% or is responsible for overall payment of their tax and National Insurance, they will be classed as self-employed.

Self-employed

Applicants will need to have been trading for a minimum of 12 months and we will require income verification for the number of years’ income keyed onto our online application.

The following income will be accepted:

  • For sole traders - net profit.
  • For partnerships - the relevant share of the net profit.
  • For limited company directors - remuneration plus dividends.

Income verification will be required in all instances.

Ex-local Authority Flats

Ex-local authority flats or maisonettes may be considered providing they do not contain deck access. The block should be predominantly privately owned and will be subject to an individual underwriter review.

 

F

Family Gifted Deposit

A family gift is an acceptable source of deposit unless the property is being purchased from the family member who is providing the gift. We will require a letter from the donor confirming the full details of the gift, click here to download our letter template.

Where the property is being purchased from a family member at a discounted price, this is acceptable providing the family member will not continue to reside. Our lending and assessment of the maximum LTV will be based on the reduced price and the vendor relinquishing all rights to the property. The applicant must commit their own funds to the transaction.

Family Purchase

Where a property is being purchased from a family member at a discounted price, this is acceptable providing the family member will not continue to reside. Our lending and assessment of the maximum LTV will be based on the reduced price and the vendor relinquishing all rights to the property. The applicant must commit their own funds to the transaction.

Fees

There are a number of additional fees involved in a mortgage application. Please refer to the ‘Tariff of mortgage charges’ document for full details.

The product and telegraphic transfer fees can be added to the loan amount. Any fees added will not be incorporated into the LTV calculation but will be included in our affordability assessment.

Other fees include Product Switching Fee, Property Re-inspection Fee, Telegraphic Transfer Fee (£35) and Redemption Administration Fee (£120).

All fees include VAT (where applicable).

Click here for information on valuation fees.

First Time Buyers

A first time buyer is an applicant who has not owned a property within the last 18 months.

Flats/Maisonettes/Apartments

  • Must be self-contained with private facilities.
  • Must have direct access to the highway via covered common parts.
  • Up to a maximum of 20 storeys.

Flats above or adjacent to commercial premises may be considered on an individual basis.

Click here for details of ex-local authority flats.

Studio flats are not accepted.

Flying Freehold

A property with an element of Flying Freehold can be considered providing it does not exceed 10% of the total area.

Forces Help to Buy

We accept deposits from Forces Help to Buy scheme. The monthly repayments for this will be included in our affordability assessment as a commitment.

Foreign Nationals

Where an applicant is from outside the EEA they must have been resident in the UK for the last 3 years and have permanent rights to reside in the UK.

 

G

Guarantors

We are unable to consider guarantors on our Residential Mortgages.

 

H

Help to Buy

We accept applications on the Help to Buy, Help to Buy London and Help to Buy Wales Shared Equity schemes.

Housing Benefit

We are unable to accept applications where the applicant has been in receipt of Housing Benefit in the last 12 months.

 

I

Income Sources

The following are acceptable sources of income:

Employed

Income type Proportion allowable in calculation
Basic salary 100%
Shift allowance 100%
Large town allowance 100%
Childcare payments 100%
Mortgage subsidy 100%
Car allowance 100%
Overtime/bonus/commission 50%* (if regular/"guaranteed")

*Full amount should be keyed into the application.

Self-employed

  • For sole traders - net profit.
  • For partnerships - their share of the net profit.
  • For limited company directors - remunerations plus dividends.

The following can be included as income where evidence is available:

  • Sole traders/partnerships:
    • Private pension payments where declared on the SA302 or tax calculations.
  • Directors (owns 25% or more shares)
    • Director's car allowance.
    • Director's pension payment.

Additional income

Source Amount eligible Criteria
Tax credits 100%
  • Current Inland Revenue documentation
  • Must have a minimum of 3 years left to run (based on ages of children)
Maintenance 50%*
  • Must be via a court order
  • Must have a minimum of 3 years left to run
Permanent second job Maximum 50%
  • Position held for more than 12 months
  • Should be a permanent position
  • Confirmation that the hours worked are sustainable
Pension income 100%
  • Confirmed personal, occupational, disability or state pension can be included

*Full amount should be keyed into the online application.

Income Verification

Residential Mortgages

Residential Second Charge Loans

Residential Mortgages

Employed

The latest 3 months' payslips and latest P60 document (the latest 2 years' P60 will be required if an annual bonus is included).

Self-employed

1 year's SA302s and HMRC Tax Year Overviews or Tax Calculations and HMRC Tax Year Overviews or accounts (we only accept accounts prepared by accountants with the following qualifications: ACA/FCA, CA, ACCA/FCCA, AAPA/FAPA, CIMA, CIPFA.).

In some cases 2 years' income verification is required (please see our Residential Criteria Guide or Residential Second Charge Criteria Guide for more details).

Residential Second Charge Loans

Employed

The latest 2 months’ or latest 3 weeks payslips and P60 document.

Self-employed

The latest 1 years accounts, SA302 or Tax Calculation plus the corresponding Tax Year overview.

In some cases 2 years' income verification is required (please see our Residential Criteria Guide or Residential Second Charge Criteria Guide for more details).

Inherited Property

Where a property has been inherited, probate must have been granted prior to a mortgage application being made. Evidence of the Grant of Probate should be provided ahead of a Mortgage Offer being issued. Where the beneficiary is looking to capital raise on the property, the application should be submitted to us as a remortgage and no minimum period of ownership will apply in these cases.

If the applicant is purchasing the property having being granted part of this in probate, we have no minimum period of ownership for the vendor.

L

Leasehold

The minimum remaining lease term must be 70 years at the time of application.

Let to Buy

Residential Mortgages

Any application that involves the applicants retaining their existing residential home on a Buy to Let basis will be classed as a Let to Buy. The maximum LTV on Let to Buy applications is 80%. We will require a consent to let from the existing lender or evidence or refinancing on a Buy to Let basis.

Loan Amount

Residential Mortgages

Residential Second Charge Loans

Residential Mortgages
  • Minimum loan £25,001
  • Maximum loan £1,000,000
Residential Second Charge Loans
  • Minimum loan £10,000
  • Maximum loan £500,000 on standard criteria, larger loans can be considered on referral.

LTV limits

Residential Mortgages

Residential Second Charge Loans

Residential Mortgages

Precise Mortgages offers the following maximum LTV limits:

  • 85% LTV up to £300,000
  • 80% LTV up to £500,000
  • 70% LTV up to £1,000,000
  • Let to Buy applications and applications where non self-funding mortgages exist are restricted to 80% LTV.

Residential Second Charge Loans

Precise Mortgages offers the following maximum LTV limits:

  • 85% LTV up to £100,000
  • 80% LTV up to £250,000
  • 75% LTV up to £500,000
  • Loans greater than £500,000 may be available on referral.

Location

Residential Mortgages

Residential Second Charge Loans

Residential Mortgages

Properties located in mainland England, Wales and selected postcodes in Scotland are acceptable. The list below shows the Scottish postcodes we accept:

  • Tayside DD - All
  • Lothian EH - All
  • Stirlingshire FK - All
  • Glasgow G - All
  • Ayrshire KA - All mainland
  • Fife KY - All
  • Lanarkshire ML - All
  • Renfrewshire & Argyll PA - PA1 to PA19
Residential Second Charge Loans

Properties located in mainland England and Wales are acceptable.

 

M

Marital Status

Applications from those who are married, in civil partnerships or are co-habiting should be in joint names.

Where the original mortgage is in a sole name, we may consider a remortgage in a sole name, subject to underwriter discretion.

Minimum Ownership

We require the customer to have owned the property or had the existing mortgage for at least 12 months before we will consider a remortgage.

Minimum Income

£15,000 for the main applicant from primary employment.

Modern Methods of Construction (MMC)

Properties that have any MMC components can be considered providing the property was constructed by one of the following companies:

  • Barratt Developments
  • Bellway
  • Berkeley
  • Bloor Homes
  • Bovis Homes
  • Crest Nicholson
  • Galliford Try
  • Persimmon
  • Redrow
  • Taylor Wimpey

If the property was constructed within the last 10 years it will need to benefit from one of the following warranties:

  • Advantage HCI
  • Aedis Warranties Ltd
  • Building Life Plans
  • Buildzone
  • Checkmate (Castle 10)
  • CRL Management Ltd
  • International Construction Warranties (ICW)
  • LABC
  • N.H.B.C. Guarantee
  • Premier Guarantee Scheme
  • Professional Consultants Certificate
  • Protek
  • Zurich Municipal “New build”
 

N

Nationality

All UK and EEA nationals are acceptable providing they have a 3 year UK residential history. Non EEA Nationals must have been resident in the UK for the last 3 years and have permanent rights to reside in the UK.

New Build

Residential Mortgages

Precise Mortgages define ‘New Build’ as a property that has never been occupied.

The maximum LTV is 85%, plus 5% builder incentive. There should be a minimum customer contribution of 10% for both houses and flats, with the exception of Help to Buy applications where there must be a minimum customer contribution of 5%.

Where the builder is offering any cash-based incentive e.g. discounted purchase price, stamp duty paid, legal fees paid, cash-back after completion, mortgage paid etc, this is acceptable up to a maximum of 5% of the transaction without a requirement to reduce the purchase price.

Some Section 106 planning obligations are acceptable.

An acceptable building warranty will be required.

 

O

Offer Validity

Offers will be valid for 3 months from the valuation date.

Residential Mortgages

New Build offers will be valid for 6 months from the valuation date. An offer extension for a further 3 months can be considered subject to:

  • Confirmation of any changes of circumstance are received in month 5 of the mortgage offer, before the expiry of the initial 6 month offer period.
  • A new credit search and affordability assessment.
  • All supporting documentation is updated and resubmitted.
  • The case will be re-underwritten and must still be acceptable to us in line with our then prevailing mortgage lending policy and products.
  • A re-inspection of the property by the valuer (subject to a £95 fee).

Ownership

Residential Mortgages

Residential Second Charge Loans

Residential Mortgages

Where a customer is looking to place a remortgage application, they must have owned the property for 12 months.

Residential Second Charge Loans

Applicants must have owned the property for a minimum of 6 months before applying for a Second Charge Loan.

 

P

Payday Loans

We can consider lending to applicants who have made use of payday loans, this will be assessed on a case by case basis.

Pension Income

Residential Mortgages

Residential Second Charge Loans

Residential Mortgages

Personal / occupational pension income can be considered as the sole source of income subject to a full review of the application.

State pension is not accepted as a sole source of income.

Residential Second Charge Loans

Please contact us directly for further information regarding pension income.

Porting

All our products are not portable.

Pre-emption

Precise Mortgages cannot consider remortgaging a property purchased under any scheme where a current pre-emption clause is in place or where the original vendor retains any interest in the property. Any pre-emption clause will need to have expired before an application is made.

Probate

Where a property has been inherited, probate must have been granted prior to a mortgage application being made. Evidence of the Grant of Probate should be provided ahead of a Mortgage Offer being issued. Where the beneficiary is looking to capital raise on the property, the application should be submitted to us a remortgage and no minimum period of ownership will apply in these cases.

If the applicant is purchasing the property having being granted part of this in probate, we have no minimum period of ownership for the vendor.

Product Switching Fee

Residential Mortgages

If the applicant decides to change the product on the application after the mortgage product has been offered, a non-refundable administration fee of £120 is payable prior to the amended mortgage offer being issued.

Property

All properties must comprise of a single residential dwelling unit i.e. own living accommodation/kitchen/bathroom etc. Taking a single mortgage over a property converted into more than 1 unit is not accepted.

If the construction is non-traditional, contact us for acceptability. There are certain construction types we will not accept, click here for further details.

Properties built within the last 10 years must benefit from an acceptable warranty scheme. Please refer to The UK Finance Lenders handbook for the currently acceptable schemes: https://www.cml.org.uk/lenders-handbook/.

We may consider, on an individual referral basis, properties with:

  • 3 or more acres of land;
  • Majority flat roof;
  • Restrictive or unusual planning permission;
  • Overriding interests

Please refer to a member of our Sales Team for further guidance.

The following types of property are not considered acceptable:

  • Commercial Properties
  • Any property affected by Japanese knotweed.
  • Any property deemed unsuitable security by the valuer.
  • Any property where there is ongoing movement/monitoring is required.
  • Property where material environmental hazards are present.
  • Property where saleability may be adversely affected by local planning or by an unsatisfactory mining search.
  • We are unable to consider any property being purchased under any social housing schemes other than Right to Buy. We are unable to consider remortgaging any property purchased under any such scheme where the original vendor retains any interest or where any pre-emption clause remains.
  • We will not lend where the property is affected by or within influencing distance of any significant factor which will have a negative impact on the property’s value or re-saleability (e.g. overhead pylons, sub stations, etc).
  • We are unable to lend where the property has been purchased from a company that the applicant has an interest in.
  • We are unable to lend where the property is subject to either a back-to-back or sub-sale agreement or subject to a Finder’s Fee.

Property Re-inspection

On occasion a re-inspection of the property may be required before or after an offer has been issued.

Residential Mortgages

Residential Second Charge Loans

Residential Mortgages

Where a re-inspection is necessary after the initial valuation is carried out, there will be a fee of £95.

Residential Second Charge Loans

Where a re-inspection is necessary after the initial valuation is carried out, there will be a fee of £90.

Property Value/Purchase Price

The minimum value or purchase price is £50,000, or £150,000 in London postcode districts.

 

R

Remortgage

Residential Mortgages

We accept remortgage applications where the original purchase or last remortgage date was over 12 months ago.

Repayment Method

Capital and Interest only.

Residency

All UK and EEA nationals are acceptable providing they have a 3 year UK residential history. Non EEA Nationals must have been resident in the UK for the last 3 years and have permanent rights to reside in the UK.

Restrictive Covenants

We are unable to consider any property that may have a restricted occupancy clause within the planning permission, for example it can only be occupied for a maximum of 11 months in any one year. Property with unrestricted occupancy can be considered provided our normal requirements are met. Similarly, property that can only be used for retirement or sheltered accommodation is not accepted. This is the same for any property where a planning restriction (e.g. agricultural restriction) effectively limits a property’s appeal on the open market.

Please note for New Builds, we do consider some Section 106 planning obligations.

Retentions

We are unable to accept any loan where there is a retention.

Right to Buy (RTB)

Residential Mortgages

Right to Buy (RTB) provides individuals with the opportunity to buy their social housing property at a discounted market price, providing they meet the scheme eligibility requirements. Visit https://righttobuy.gov.uk/ for more information on eligibility.

Our Right to Buy scheme is offered for house purchases in England only, please note flats are not acceptable.

We have products available at 90% and 100% of the discounted purchase price (plus lender fees). This is subject to the loan not exceeding 75% of the open market value of the property, as determined by one of our panel surveyors.

Only Right to Buy schemes operated by recognised local authorities/housing associations are acceptable. For Right to Buy applications our standard lending criteria applies in addition to the requirements detailed above. We cannot accept applications where the customer has been in receipt of Housing Benefit during the last 12 months.

 

S

Section 106 Planning Obligations

Residential Mortgages

Section 106 planning obligations are accepted as detailed below:

Financial obligations - are acceptable subject to the conveyancer confirming that the monies due under the agreement have been paid in full or an indemnity exists within the agreement to indemnify any successors in title for any liability to repay any monies due.

In kind obligations (e.g. provision of open space, recreation facilities, education facilities, transportation plans, etc.) - are acceptable.

Restrictions on who can purchase the property - where the property is subject to a restriction that only allows it to be purchased or occupied by someone living or working in a specified area this should be referred to us for individual consideration. Restrictions relating to purchasers being in housing need, not being able to afford to purchase on the open market or having income less than a certain amount are not acceptable.

Affordable housing - it is acceptable for a development to be subject to a requirement to provide a proportion of affordable housing.

For any other planning obligation, please contact us.

Self-employed

Where an applicant has a shareholding of over 25% or is responsible for the overall payment of their tax and national insurance, they will be classed as self-employed.

Applicants will need to have been trading for a minimum of 12 months and we will require income verification for the number of years’ income keyed onto our online application.

The following income will be accepted:

  • For sole traders - net profit.
  • For partnerships - the relevant share of the net profit.
  • For limited company directors - remuneration plus dividends.

Income verification will be required in all instances.

Specialist Reports

On some occasions we may require a specialist’s report for the property, these most commonly comprise of:

  • Timber and damp, electrical, trees, cavity wall tie;
  • Mining report (for long term lending these are obtained by the solicitors and a special condition is imposed at offer).

Any such reports should be prepared by a reputable firm and should be forwarded to us for review and referral to the valuer.

Structural Reports

In some instances a structural report may be requested by the surveyor.

Reports will only be accepted from members of the following bodies:

The report must be referred to the valuer for comment. If the report is not addressed to the applicant, written confirmation must be obtained from the originator that its contents may be relied upon by the applicant(s).

We will not lend on any property with either ongoing movement or where monitoring is required, where this is identified by either the valuer, or where evident in the structural engineer’s report.

Studio Flats

Studio flats are not acceptable.

 

T

Tenure

Freehold - Not acceptable for flats/maisonettes.

Leasehold - Minimum remaining lease term is 70 years at the time of application.

Flying Freehold - A property with an element of Flying Freehold can be considered providing it does not exceed 10% of the total area. The valuer must comment and confirm the total percentage.

Commonhold - Not acceptable.

Term

Residential Mortgages

Residential Second Charge Loans

Residential Mortgages
  • Minimum term 5 years
  • Maximum term 35 years
Residential Second Charge Loans
  • Minimum term 3 years
  • Maximum term 35 years

U

Unencumbered

Unencumbered properties do not have current mortgages or loans secured on them. When raising funds on an unencumbered property, applications should be submitted on a remortgage basis.

 

V

Valuation

All applications will require a standard valuation to be instructed by Precise Mortgages, click here for details of the fees involved.

For properties in Scotland a re-typed valuation can be accepted providing:

  • The Home Report was carried out within 28 days of the application submission date
  • The inspection was carried out by a valuer from our approved panel

Where we are able to use a re-type a fee of £95 is payable, however a full fee will be taken on application with the difference refunded once an acceptable valuation report is received.

All valuations are subject to underwriter review.

W

Working Abroad

We are able to consider lending to applicants that work abroad providing:

  • They spend the majority of the year in the UK
  • They are paid in pounds sterling
  • They pay UK tax

Applicants who work abroad will be considered on an individual basis and be subject to the underwriter assessment.

 

Z

Zero Hours Contracts

Applicants who are subject to a zero hours contract will not be accepted.

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

What's New

  • Income supported Buy to Lets available.
  • Portfolio lending limit increased to £10 million with Precise Mortgages (unlimited with other lenders).
  • Limited Company and HMO product ranges available.

A

Adverse Credit

Buy to Let Mortgages

Second Charge Loans

Buy to Let Mortgages

Defaults: 0 in 12 months, no more than 2 in 24 months
CCJs: 0 in 12 months, no more than 1 in 24 months (max £2,500)
Mortgage arrears: 0 in 12 months, no more than 1 in 36 months (worst status)
IVA and bankruptcy: Must have been discharged for 6 years
Repossessions: Are not accepted
Debt Management Plans: Are not accepted

Please be aware that further restrictions may apply, depending on the product chosen. See relevant product guide for further details.

Buy to Let Second Charge Loans

Unsecured arrears: 0 in 36 months
Defaults: 0 in 72 months
CCJs: 0 in 72 months
Mortgage arrears: 0 in 36 months
IVA and bankruptcy: Are not accepted
Repossessions: Are not accepted
Debt Management Plans: Are not accepted

Please be aware that further restrictions may apply, depending on the product chosen. See relevant product guide for further details.

Age

Minimum age: 25
Maximum age: 80 at the date of application
First time buyers maximum age: 70 at the end of the mortgage term, we can consider extending this to a maximum age of 75 providing this does not exceed any known retirement date.

Agency Workers

Unfortunately we are unable to accept applicants who are currently employed by an employment agency.

Annual Bonus

An annual bonus can be included as part of a customer’s total income providing this is regular and two years' verification can be provided. Please note that we will only include 50% of any bonus in our affordability assessment, however the full amount should be keyed in the online application.

B

Builder’s Second Charge

Buy to Let Mortgages

A Builder’s Second Charge is acceptable providing the customer has a 15% deposit from their own funds. Repayments will be taken in to account for affordability.

Building Warranty

New Build properties and properties less than 10 years old will need to benefit from an acceptable building warranty provided by one of the following:

  • Advantage HCI
  • Aedis Warranties Ltd
  • Building Life Plans
  • Buildzone
  • Checkmate (Castle 10)
  • CRL Management Ltd
  • International Construction Warranties (ICW)
  • LABC
  • N.H.B.C. Guarantee
  • Premier Guarantee Scheme
  • Professional Consultants Certificate
  • Protek
  • Zurich Municipal New build

C

Certification

All documents submitted to Precise Mortgages in support of an application will need to be certified by a suitable representative of the introducing broker or intermediary company. The name of the certifier and their position within the company should be clear on the certification.

Documents containing a photograph of the applicant will need to be certified as ‘true copy of the original’ and ‘true likeness of the applicant’ (unless the applicant has not been seen face to face). All other photocopied documents must be certified with the words ‘true copy of the original’.

ID and residency documents must be certified individually.

Click here to download a copy of our Document Certification form.

For further details please see our Anti Money Laundering Guidelines.

Commercial Property

Live/work units or any property where commercial usage exceeds 20% will not be accepted.

Flats above or adjacent to commercial premises may be considered on an individual basis.

Commercial Usage

Home office usage is acceptable providing that this does not involve clients being seen on the premises on a regular basis. For any other form of commercial usage, please contact use for further information.

Construction

We accept properties of traditional and Modern Methods of Construction (MMC).

The following methods of construction are not considered acceptable:

  • Any property of Easiform construction.
  • Any property containing mundic concrete.
  • Any property containing no-fines concrete.
  • Flats or maisonettes in blocks exceeding 20 storeys.
  • Grade 1 listed buildings in England and Wales / Grades A and B in Scotland.
  • Mobile homes and houseboats.
  • Properties constructed with high-alumina cement, timber framed property with no brick skin or 100% steel or timber framed property.
  • Property designated defective under Part XVI Housing Act 1985, Housing (Scotland) Act 1987 or Pre-Cast Reinforced Concrete (PRC) property (irrespective of whether repaired under a licence repair scheme).

D

Deposit

The deposit should come from the applicant’s own funds and have originated within the EEA. We will also accept the following sources of deposit:

  • Family gifts
  • Remortgage or secured loan on an existing property owned by the applicant
  • Builder’s Second Charge

Diplomatic Immunity

Applicants with diplomatic immunity from UK law will not be accepted.

E

Employment

Employed

Applicants must be in permanent employment that is not subject to a current probationary period. Applicants must have been in their current job for a minimum of 3 months with 12 months continuous employment.

Applicants on a fixed term contract basis are acceptable but if there is less than 6 months remaining on the contract confirmation of renewal may be required.

Agency workers and zero hours contracts are not acceptable.

If an applicant has a shareholding of over 25% or is responsible for overall payment of their tax and National Insurance, they will be classed as self-employed.

Self-employed

Applicants will need to have been trading for a minimum of 12 months and we will require income verification for the number of years’ income keyed onto our online application.

The following income will be accepted:

  • For sole traders - net profit.
  • For partnerships - the relevant share of the net profit.
  • For limited company directors - remuneration plus dividends.

Ex-local Authority Flats

Ex-local authority flats or maisonettes may be considered providing they do not contain deck access. The block should be predominantly privately owned and will be subject to an individual underwriter review.

F

Family Gifted Deposit

Buy to Let Mortgages

A family gift is an acceptable source of deposit unless the property is being purchased from the family member who is providing the gift. We will require a letter from the donor confirming the full details of the gift, click here to download our letter template.

Where the property is being purchased from a family member at a discounted price, this is acceptable providing the family member will not continue to reside. Our lending and assessment of the maximum LTV will be based on the reduced price and the vendor relinquishing all rights to the property. The applicant must commit their own funds to the transaction.

Family Lets

We are unable to lend on a property where new or existing tenants are related to the applicant.

Family Purchase

Buy to Let Mortgages

We will consider applications where the property is being purchased from a family member. A discounted purchase price is acceptable providing the family member will not continue to reside. Our lending and assessment of the maximum LTV will be based on the reduced price and the vendor relinquishing all rights to the property. The applicant(s) must commit their own funds to the transaction.

Fees

There are a number of additional fees involved in a mortgage application. Please refer to the ‘Tariff of mortgage charges’ document for full details.

All fees include VAT (where applicable).

Buy to Let Mortgages

Buy to Let Second Charge Loans

Buy to Let Mortgages

The product and telegraphic transfer fees can be added to the loan amount. Any fees added will not be incorporated into the LTV calculation but will be included in our affordability assessment.

Other fees include Product Switching Fee, Property re-inspection fee, Telegraphic transfer fee (£35) and Redemption administration fee (£120).

Buy to Let Second Charge Loans

The product and telegraphic transfer fees can be added to the loan amount. Any fees added will not be incorporated into the LTV calculation but will be included in our affordability assessment.

Other fees include Property Re-inspection Fee, Telegraphic Transfer Fee (£35) and Redemption Administration Fee (£120).

Click here for information on valuation fees.

First Time Buyer Landlords

Buy to Let Mortgages

Maximum LTV: 75% LTV (dependent on specific product limits).
Maximum age: 70 at the end of the mortgage term, we can consider extending this to a maximum age of 75 providing this does not exceed any known retirement date.

  • We will assess the landlord’s earned income at full application stage.
  • The property will need to meet our minimum ICR, click here to access our buy to let calculator for further guidance. In addition we will assess the landlord’s earned income at full application stage as part of our affordability assessment. We will accept up to 2 applicants and income can be submitted for both which will be included in the affordability assessment, subject to the underwriter’s discretion.

Income verification and the latest 3 months bank statements will be required.

Unfortunately, we do not allow first time buyer landlords to apply for HMO properties.

Limited Companies: If all guarantors are first time buyers, please contact us on 0800 116 4385.

Five Year Fixed Rate Requirements

Buy to Let Mortgages

If a customer has chosen a 5 year+ fixed rate mortgage extra checks will be required when the LTV is greater than 60% and the minimum ICR is not met at an interest rate of 5.5%, the customer will need to demonstrate one of the following:

Substantial Net worth – We will look to verify that a customer has substantial net worth in fixed assets, such as property. This will typically be in the form of at least £250,000 equity in their residential home or at least £500,000 across a property investment portfolio. A fully completed Existing Property Portfolio Form will be required.

OR

Satisfactory level of Liquid assets – Forms of liquid assets could include (but is not limited to): Cash deposits in savings or investment accounts, ISAs, PEPs, Investment Bonds and Publically listed Stocks & Shares. A fully completed Personal Assets & Liabilities form together with supporting validation demonstrating a sufficient level of assets will be required.

OR

Excess disposable income – We will require evidence of the customer’s income e.g. latest payslip or P60 for PAYE, latest set of accounts or SA302 (or online tax calculation) PLUS corresponding tax year overview for self-employed customers. The customer must have sufficient validated excess disposable income to cover the difference between the monthly interest payment at the fixed pay rate and at a rate of 5.5%.

Flats/Maisonettes/Apartments

  • Must be self-contained with private facilities.
  • Must have direct access to the highway via covered common parts.
  • Up to a maximum of 20 storeys.

Flats above or adjacent to commercial premises may be considered on an individual basis.

Click here for details of Ex-local authority flats.

Studio flats are not accepted.

Flying Freehold

A property with an element of Flying Freehold can be considered providing it does not exceed 10% of the total area.

Freehold

Freehold is unacceptable for flats/maisonettes. If the applicant is the sole owner of the freehold to a building that contains the leasehold flat, Precise Mortgages will take a charge over both the freehold and the leasehold.

G

Guarantors

Mortgage guarantors are not acceptable on personal ownership applications.

For Limited Company applications all company Directors and shareholders over the age of 25 are required to provide a Personal Guarantee for the mortgage. The directors/shareholders added to the application must match to those registered with Companies House.

H

Houses in Multiple Occupation (HMO)

Buy to Let Mortgages

A HMO is defined as any property where both of the following conditions are met:

  • There are at least 3 tenants who form more than one household.
  • The tenants share toilet, bathroom or kitchen facilities.

Maximum loan size and LTV

Loan amount Up to 5 apps 6 to 10 apps 11 to 20 apps
Up to £500,000 80% 75% 70%
Up to £750,000 75% 75% 70%
Up to £1,000,000 70% 70% 70%

  • Minimum valuation: £250,000 in London, £100,000 for all other allowable locations.
  • Precise Mortgages HMO range is available to experienced landlords only. Applicants must have held a current buy to let for at least 12 months prior to application. No first time landlords.
  • Available in England and Wales.
  • The number of bedrooms is limited to a maximum of 8.
  • Where applicable, an application for any HMO Licence required by the Local Authority must have been made prior to completion.
  • Click here to view our HMO product guide.

Housing Benefit

We are unable to accept applications where any of the applicants have been in receipt of housing benefit in the last 12 months. We are also unable to consider applications where the tenants are in receipt of housing benefit.

I

Income Sources

The following are acceptable sources of income:

Employed

Income type Proportion allowable in calculation
Basic salary 100%
Shift allowance 100%
Large town allowance 100%
Childcare payments 100%
Mortgage subsidy 100%
Car allowance 100%
Overtime/bonus/commission 50%* (if regular/"guaranteed")

*Full amount should be keyed into the application.

Self-employed

  • For sole traders - net profit.
  • For partnerships - their share of the net profit.
  • For limited company directors - remunerations plus dividends.

The following can be included as income where evidence is available:

  • Sole traders/partnerships:
    • Private pension payments where declared on their SA302 or tax calculations.
  • Directors (owns 25% or more shares)
    • Director's car allowance.
    • Director's pension payment.

Additional income

Source Amount eligible Criteria
Tax credits 100%
  • Current Inland Revenue documentation
  • Must have a minimum of 3 years left to run (based on ages of children)
Maintenance 50%*
  • Must be via a court order
  • Must have a minimum of 3 years left to run
Permanent second job Maximum 50%
  • Position held for more than 12 months
  • Should be a permanent position
  • Confirmation that the hours worked are sustainable
Pension income 100%
  • Confirmed personal, occupational, disability or state pension can be included

*Full amount should be keyed into the online application, not 50% of the full amount.

Income Supported Buy to Let

Buy to Let Mortgages

Buy to Let Second Charge Loans

Buy to Let Mortgages

If the requested loan amount is not available because the rental income is not sufficient to meet our minimum ICR requirement, Precise Mortgages will consider using earned income to support the requested loan amount. The rental income must be a minimum of 110% of the payment when calculated at the pay rate of the chosen product, earned income can then be used to meet the shortfall as determined by the ICR required for the loan based on our current lending criteria. If an applicant chooses to use earned income to support a loan income verification will be required. The following criteria will apply:

  • The applicant(s) should own no more than 3 mortgaged buy to let properties, including the security address.
  • Applicant 1 must own their residential home.
  • The repayment method must be interest only.
  • All existing credit commitments will be taken into consideration when completing an affordability assessment.
  • Only one income supported buy to let application per applicant can proceed at any time.
  • HMOs and Limited Company applications are not eligible for income supported buy to let.
  • There are no minimum income requirements.
  • All income will need to be validated to the Precise Mortgages underwriter’s discretion.
  • If the application is a Let to buy, details of the new residential mortgage repayment will need to the entered onto the online application. We will require evidence of this by way of a mortgage offer prior to an offer being made by Precise Mortgages. If the exact details are not known at the time of application, our ability to offer an income supported buy to let may be affected.
Buy to Let Second Charge Loans

If the requested loan amount is not available based only on the ICR calculation, Precise Mortgages will consider utilising earned income to support the requested loan amount. This is subject to the applicant owning no more than 3 mortgaged buy to let properties (including the security). If this option is used, then the following criteria will apply:

  • The validated monthly rental income figure must be a minimum of 110% of the total actual monthly repayment (current mortgage plus the proposed second charge loan) for the security address.
  • All income will need to be validated to the Precise Mortgages underwriter’s satisfaction.
  • A minimum of 1 applicant must own their residential property.
  • The repayment method must be interest only.
  • The proposed loan must end before the 75th birthday, or declared retired age (whichever comes first) of all applicants whose income is required to support the loan.
  • All existing debt obligations (including court orders and CSA/maintenance/alimony commitments) will be taken into consideration as outgoings.
  • For the above reasons, it is therefore essential that all fields on the Decision in Principle form are completed accurately.

Income Verification

Buy to Let Mortgages

Buy to Let Second Charge Loans

Buy to Let Mortgages

Employed

The latest 3 months' payslips and latest P60 document (the latest 2 years' P60 will be required if an annual bonus is included).

Self-employed

1 year's SA302s and HMRC Tax Year Overviews or Tax Calculations and HMRC Tax Year Overviews or accounts (we only accept accounts prepared by accountants with the following qualifications: ACA/FCA, CA, ACCA/FCCA, AAPA/FAPA, CIMA, CIPFA.).

In some cases 2 years' income verification is required (please see our Residential Criteria Guide or Residential Second Charge Criteria Guide for more details).

Buy to Let Second Charge Loans

Employed

The latest 2 months’ or latest 3 weeks payslips and P60 document.

Self-employed

The latest 1 years accounts, SA302 or Tax Calculation plus the corresponding Tax Year overview.

In some cases 2 years' income verification is required (please see our Residential Criteria Guide or Residential Second Charge Criteria Guide for more details).

Inherited Property

Where a property has been inherited, probate must have been granted prior to a mortgage application being made. Evidence of the Grant of Probate should be provided ahead of a Mortgage Offer being issued. Where the beneficiary is looking to capital raise on the property, the application should be submitted to us as a remortgage and no minimum period of ownership will apply in these cases.

If the applicant is purchasing the property after being granted part of this in probate, we have no minimum period of ownership for the vendor.

Interest Coverage Ratio (ICR)

Buy to Let Mortgages

Buy to Let Second Charge Loans

Buy to Let Mortgages
Tax band* ICR rate
Basic rate 125%
Higher rate 145%
Additional rate 160%
Limited companies 125%
Bespoke ICR 125%-160%

*The customer’s tax band should be based on all validated current income plus gross rental income (excluding any deductions) from all rental properties, including the security.

The interest rate used in the ICR calculation is determined by the chosen product as follows:

  • Tracker – The higher of pay rate +2% or revert rate, at a minimum of 5.5%.
  • Short term Fixed rate – The higher of pay rate +2%, or revert rate, at a minimum of 5.5%.
  • 5yr+ Fixed rate – The initial pay rate.

We are able to consider using an applicant’s income in support of the requested loan amount providing they meet our qualifying criteria.

Where rental income is not sufficient to meet the minimum rental cover requirements using rental income alone or in combination with excess disposable income, Precise Mortgages may reduce the loan amount accordingly.

Buy to Let Second Charge Loans

The applicant’s income tax band will determine the Interest Coverage Ratio (ICR) applicable to the application. Where there are joint applicants with different income tax bands, the higher tax band will apply. The monthly rent should cover the existing first mortgage repayment and the proposed second charge loan repayment by the amount of the ICR at the applicable assessment rate which can be confirmed by the Underwriter.

Tax Band* ICR rate
Basic rate 125%
Higher rate 145%
Additional rate 160%

*Where there are joint applicants with different income tax bands, the higher tax band will be applicable.

If the requested loan amount is not available based only on the ICR calculation, Precise Mortgages will consider utilising earned income to support the requested loan amount.

L

Leasehold

The minimum remaining lease term must be 70 years at the time of application.

Let to Buy

Buy to Let Mortgages

Any application that involves the applicants retaining their existing residential home on a buy to let basis will be classed as a Let to Buy. The maximum LTV on let to buy applications is 80%.

The remortgage and purchase must complete simultaneously.

Limited Company

Buy to Let Mortgages

Any Limited Company must be set up solely to own/buy/sell/let property.

The company should have one of the following SIC codes (Standard Industrial Classification):

  • 68100 - Buying and selling of own real estate
  • 68209 - Other letting and operating of own or leased real estate
  • 68320 - Management of real estate on a fee or contract basis.

Maximum 4 qualifying directors/shareholders none of which may be another limited company.

In all applications, Personal Guarantees will be required for all Directors. Additionally, all shareholders over the age of 25 will be required to provide a Personal Guarantee, subject to the company having a maximum of 4 qualifying Directors and shareholders. There is no limit on the number of shareholders under the age of 25 subject to the shareholders being dependants of the Directors.

Maximum term 35 years (maximum guarantor/director age at application 80 years).

Maximum of 20 buy to let loans per individual (including buy to let loans which the individual has guaranteed), with Precise Mortgages up to a combined value of £10,000,000.

Loan amount

Buy to Let Mortgages

Buy to Let Second Charge Loans

Buy to Let Mortgages

Minimum loan: £25,001 (unless otherwise stated, please see the relevant product guide).
Maximum loan: £3,000,000 subject to product restrictions (see product guides for full details).
Maximum loan size in Scotland is £1,000,000.

Individual products may have further loan restrictions, please see the relevant product guide for further details.

Buy to Let Second Charge Loans

Minimum loan:£10,000
Maximum loan:£1,000,000 (on referral)

Loan to Value (LTV)

Precise Mortgages calculates the loan to value based on the lower of the purchase price or the property value as determined by the valuer.

Buy to Let Mortgages

Buy to Let Second Charge Loans

Buy to Let Mortgages
Loan amount Up to 5 apps 6 to 10 apps 11 to 20 apps
Up to £500,000 80% 75% 70%
Up to £750,000 75% 75% 70%
Up to £1,000,000 70% 70% 70%
Up to £3,000,000 60% 60% 60%

The maximum loan size will vary by product; please check the relevant product guide for further information, and click here for the maximum LTV applicable to mortgages secured on HMOs.

Let to Buy applications and applications where non self-funding mortgages exist, are restricted to 80% LTV.

First Time Buyers maximum LTV 75% (dependent on specific product limits).

Buy to Let Second Charge Loans
Loans up to £100,000 80%
Loans up to £250,000 75%

Location

Buy to Let Mortgages

Buy to Let Second Charge Loans

Buy to Let Mortgages

Properties located in mainland England, Wales and selected postcodes in Scotland are acceptable. The list below shows the Scottish postcodes we accept:

  • Tayside DD - All
  • Lothian EH - All
  • Stirlingshire FK - All
  • Glasgow G - All
  • Ayrshire KA - All mainland
  • Fife KY - All
  • Lanarkshire ML - All
  • Renfrewshire & Argyll PA - PA1 to PA19
Buy to Let Second Charge Loans

Properties in mainland England and Wales are acceptable.

M

Minimum Income

There is no minimum income requirement for buy to let applications below £1,000,000.

For loans above £1,000,000 we will require a minimum income of £100,000 from a sole source and proof of income must be provided.

If excess earned income is used to support an application this must be of a sufficient level to meet the applicant’s current commitments as well as any rental shortfall on the property.

Minimum Ownership

Buy to Let Mortgages

Buy to Let Second Charge Loans

Buy to Let Mortgages

We require the customer to have owned the property or had the existing mortgage for at least 6 months before we will consider a remortgage.

Buy to Let Second Charge Loans

The applicant should have owned and rented out the property for at least 6 months prior to an application being made. The existing mortgage on the property must have been in place for at least 3 months prior to an application being made.

Modern Methods of Construction (MMC)

Properties that have any MMC components can be considered providing the property was constructed by one of the following companies:

  • Barratt Developments
  • Bellway
  • Berkeley
  • Bloor Homes
  • Bovis Homes
  • Crest Nicholson
  • Galliford Try
  • Persimmon
  • Redrow
  • Taylor Wimpey

If the property was constructed within the last 10 years it will need to benefit from one of the following warranties:

  • Advantage HCI
  • Aedis Warranties Ltd
  • Building Life Plans
  • Buildzone
  • Checkmate (Castle 10)
  • CRL Management Ltd
  • International Construction Warranties (ICW)
  • LABC
  • N.H.B.C. Guarantee
  • Premier Guarantee Scheme
  • Professional Consultants Certificate
  • Protek
  • Zurich Municipal New build

N

Nationality

All UK and EEA nationals are acceptable providing they have a 3 year UK residential history. Non EEA Nationals must have been resident in the UK for the last 3 years and have permanent right to reside in the UK.

New Build

Buy to Let Mortgages

Precise Mortgages define New Build as a property that has never been occupied.

Maximum 80% LTV accepted.

Borrowing is available on flats up to 20 storeys.

New builds flats with a commercial ground floor are considered.

Some Section 106 planning obligations are acceptable.

No reassignment of contracts

An acceptable Building Warranty will be required.

O

Offer Validity

Offers will be valid for 3 months from the valuation date. Extensions may be considered subject to a full case review.

Buy to Let Mortgages

New Build offers will be valid for 6 months from the valuation date. An offer extension for a further 3 months can be considered subject to:

  • Confirmation of changes in circumstance are received in month 5 of the mortgage offer, before the expiry of the initial 6 month offer period.
  • A new credit search and affordability assessment.
  • All supporting documentation to be updated and resubmitted.
  • The case will be re-underwritten and must still be acceptable to us in line with our then prevailing mortgage lending policy and products.
  • A re-inspection of the property by the valuer (subject to a £95 fee).

All offer extentions must be requested by the acting solicitor.

P

Payday Loans

We can consider lending to applicants who have made use of payday loans, this will be assessed on a case by case basis.

Pension Income

Buy to Let Mortgages

Buy to Let Second Charge Loans

Buy to Let Mortgages

Personal / occupational pension income can be considered as the sole source of income subject to a full review of the application.

State pension is not accepted as a sole source of income.

Buy to Let Second Charge Loans

Please contact us directly for further information regarding pension income.

Portfolio Lending Limits

A single customer can have up to 20 individual Precise Mortgages buy to let loans (including buy to let second charge loans and mortgages they guarantee) with a maximum combined value of £10,000,000.

Unlimited with other lenders.

Portfolio criteria will be assessed at underwriting stage and as a result we may reduce the amount we will lend below that stated in any DIP to reflect our maximum LTV limits.

Portfolio Landlord

A portfolio landlord has 4 or more mortgaged buy to let properties or 3 mortgaged buy to let properties, plus at least 1 pending application with Precise Mortgages.

The following should be included in the number of properties a portfolio landlord holds:

  • All mortgaged buy to let properties owned by the applicant whether jointly, in their sole name or by a company of which they are a director or shareholder
  • Any property owned on a residential basis with Consent to Let
  • If the applicant is a limited company, properties owned by the company’s directors and shareholders, or owned by other companies of which the directors/shareholders are a shareholder or director.

Unencumbered properties do not need to be included but may strengthen the overall portfolio.

As part of our underwriting process we will make an assessment of an applicant’s portfolio based on their individual circumstances and taking into account the impact of future interest rate increases.

Please refer to the following links for further guidance:

Porting

All our products are not portable.

Pre-emption

Precise Mortgages cannot consider remortgaging a property purchased under any scheme where a current pre-emption clause is in place or where the original vendor retains any interest in the property. Any pre-emption clause will need to have expired before an application is made.

Product Switching Fee

Buy to Let Mortgages

If the applicant decides to change the product on the application after the mortgage product has been offered, a non-refundable administration fee of £120 is payable prior to the amended mortgage offer being issued.

Property

All properties must comprise of a single residential dwelling unit i.e. own living accommodation/kitchen/bathroom etc. Taking a single mortgage over a property converted into more than 1 unit is not accepted.

If the construction is non-traditional, contact us for acceptability. There are certain construction types we will not accept, click here for further details.

Properties built within the last 10 years must benefit from an acceptable warranty scheme. Please refer to The UK Finance Lenders handbook for the currently acceptable schemes: https://www.cml.org.uk/lenders-handbook/.

We may consider, on an individual referral basis, properties with:

  • 3 or more acres of land;
  • Majority flat roof;
  • Restrictive or unusual planning permission;
  • Overriding interests

Please refer to a member of our Sales Team for further guidance.

The following types of property are not considered acceptable:

  • Commercial Properties
  • Any property affected by Japanese knotweed.
  • Any property deemed unsuitable security by the valuer.
  • Any property where there is ongoing movement/monitoring is required.
  • Property where material environmental hazards are present.
  • Property where saleability may be adversely affected by local planning or by an unsatisfactory mining search.
  • We are unable to consider any property being purchased under any social housing schemes other than Right to Buy. We are unable to consider remortgaging any property purchased under any such scheme where the original vendor retains any interest or where any pre-emption clause remains.
  • We will not lend where the property is affected by or within influencing distance of any significant factor which will have a negative impact on the property’s value or re-saleability (e.g. overhead pylons, sub stations, etc).
  • We are unable to lend where the property has been purchased from a company that the applicant has an interest in.
  • We are unable to lend where the property is subject to either a back-to-back or sub-sale agreement or subject to a Finder’s Fee.

Probate

Where a property has been inherited, probate must have been granted prior to a mortgage application being made. Evidence of the Grant of Probate should be provided ahead of a Mortgage Offer being issued. Where the beneficiary is looking to capital raise on the property, the application should be submitted to us a remortgage and no minimum period of ownership will apply in these cases.

If the applicant is purchasing the property having being granted part of this in probate, we have no minimum period of ownership for the vendor.

Property Re-inspection

Buy to Let Mortgages

Buy to Let Second Charge Loans

Buy to Let Mortgages

Where a re-inspection is necessary after the initial valuation is carried out, there will be a fee of £95.

Buy to Let Second Charge Loans

Where a re-inspection is necessary after the initial valuation is carried out, there will be a fee of £90.

Property Value/Purchase Price

Minimum value or purchase price is £50,000, or £150,000 in London postcode districts.

HMO minimum value £100,000, or £250,000 in London.

R

Remortgage

Buy to Let Mortgages

We will accept remortgage applications 6 months after either the original purchase date or the last remortgage date.

Precise Mortgages’ bridging borrowers can remortgage on to a Precise Mortgages Buy to Let product after 1 month.

Repayment Method

Buy to Let Mortgages

Buy to Let Second Charge Loans

Buy to Let Mortgages
  • Capital and Interest (not available for income supported Buy to Let)
  • Interest Only
Buy to Let Second Charge Loans
  • Capital and Interest (not available for income supported Buy to Let)
  • Interest Only

Residency

All UK and EEA nationals are acceptable subject to a 3 year UK residential history. Non EEA Nationals must have been resident in the UK for the last 3 years and have permanent right to reside in the UK.

Restrictive Covenants

We are unable to consider any property that may have a restricted occupancy clause within the planning permission, for example a property that can only be occupied for a maximum of 11 months in any one year.

Similarly, properties that can only be used for retirement or sheltered accommodation is not acceptable. This is the same for any property where a planning restriction (e.g. agricultural restriction) effectively limits a property’s appeal on the open market.

Retentions

We are unable to accept any loan where there is a retention.

S

Section 106 Planning Obligations

Buy to Let Mortgages

Section 106 planning obligations are accepted as detailed below:

Financial obligations - are acceptable subject to the conveyancer confirming that the monies due under the agreement have been paid in full or an indemnity exists within the agreement to indemnify any successors in title for any liability to repay any monies due.

In kind obligations (e.g. provision of open space, recreation facilities, education facilities, transportation plans, etc.) - are acceptable.

Restrictions on who can purchase the property - where the property is subject to a restriction that only allows it to be purchased or occupied by someone living or working in a specified area this should be referred to us for individual consideration. Restrictions relating to purchasers being in housing need, not being able to afford to purchase on the open market or having income less than a certain amount are not acceptable.

Affordable housing - it is acceptable for a development to be subject to a requirement to provide a proportion of affordable housing.

For any other planning obligation, please contact us.

Self-employed

Where an applicant has a shareholding of over 25% or is responsible for the overall payment of their tax and national insurance, they will be classed as self-employed.

Applicants will need to have been trading for a minimum of 12 months and we will require income verification for the number of years’ income keyed onto our online application.

The following income will be accepted:

  • For sole traders - net profit.
  • For partnerships - the relevant share of the net profit.
  • For limited company directors - remuneration plus dividends.

Specialist Reports

On some occasions we may require a specialist’s report for the property, these most commonly comprise of:

  • Timber and damp, electrical, trees, cavity wall tie;
  • Mining report (for long term lending these are obtained by the solicitors and a special condition is imposed at offer).

Any such reports should be prepared by a reputable firm and should be forwarded to us for review and referral to the valuer.

Structural Reports

The valuer may request a Structural Report for the property.

Where necessary the valuer may request a structural report, these will need to be produced by members of the following bodies:

The report must be referred to the valuer for comment. If the report is not addressed to the applicant, written confirmation must be obtained from the originator that its contents may be relied upon by the applicant(s).

We will not lend on any property with either ongoing movement or where monitoring is required where this is identified by either the valuer, or where evident in the structural engineer’s report.

Studio Flats

Studio flats are not acceptable.

T

Tenancy

Buy to Let Mortgages

Buy to Let Second Charge Loans

Buy to Let Mortgages

Properties in England and Wales must be let under a single assured shorthold tenancy or a common law tenancy (i.e. a company let or where the annual rent is greater than £100,000) up to a maximum of 36 months.

Properties in Scotland must be let under a single short assured tenancy up to a maximum of 36 months.

Tenancy agreements for tenants in the following categories are not acceptable:

  • DWP supported tenants
  • Asylum seekers
  • Tenants who have the benefit of diplomatic immunity
  • Rental guarantee schemes

Please contact us for full details of unacceptable tenancies.

Buy to Let Second Charge Loans

Properties in England and Wales must be let under a single assured shorthold tenancy (up to a maximum of 36 months) or a common law tenancy (i.e. a company let or where the annual rent is greater than £100,000).

Unacceptable tenancies: Tenancy agreements for tenants in the following categories are not acceptable:

  • Multiple lets and HMOs are unacceptable. Precise Mortgages will refer to RICS guidelines when determining whether or not a property is a HMO
  • DWP supported tenants
  • Asylum seekers
  • Students
  • Tenants who have the benefit of diplomatic immunity

Please contact us for full details of unacceptable tenancies.

Tenure

Freehold - Not acceptable for flats/maisonettes.

Leasehold - Minimum remaining lease term is 70 years at the time of application.

Flying Freehold - A property with an element of Flying Freehold can be considered providing it does not exceed 10% of the total area. The valuer must comment and confirm the total percentage.

Commonhold - Not acceptable.

Term

Buy to Let Mortgages

Buy to Let Second Charge Loans

Buy to Let Mortgages
  • Minimum term 5 years
  • Maximum term 35 years
Buy to Let Second Charge Loans
  • Minimum term 3 years
  • Maximum term 35 years

V

Unencumbered

Unencumbered properties do not have current mortgages or loans secured on them. When raising funds on an unencumbered property, applications should be submitted on a remortgage basis.

V

Valuation

All applications will require a valuation which will be instructed by Precise Mortgages, click here for details of the fees involved.

Unfortunately, Homebuyer’s reports are not available for HMO’s or high rise developments.

All valuations are subject to underwriter review.

W

Working Abroad

We are able to consider lending to applicants that work abroad providing:

  • They spend the majority of the year in the UK
  • They are paid in pounds sterling
  • They pay UK tax

Applicants who work abroad will be considered on an individual basis and be subject to the underwriter assessment.

Z

Zero Hours Contracts

Applicants who are subject to a zero hours contract are not acceptable.

For intermediary use only
BBR 0.50% / 3 month LIBOR 0.53%