Temporary changes to our maximum allowable adverse criteria.

Defaults: 0 in 24 months
CCJs: 0 in 24 months
Mortgage arrears: 0 in 36 months
Unsecured arrears: 1 in 12 months, 2 in 36 months (worst status)
IVA, Debt relief, and bankruptcy: Must have been discharged for 6 years
Repossessions: Are not accepted
Debt Management Plans (DMPs): Are not accepted

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

Minimum age: 21
Maximum age: 80 at the date of application

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.

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
• Ark Residential New Build Warranty
• BOPAS (Build Offsite Property Assurance Scheme) Modern Methods of Construction (MMC) only
• Build Assure (New Homes Structural Defects Insurance)
• Building Life Plans
• Build zone Structural Warranty
• Checkmate (Castle 10) New Home Warranty
• Global Home Warranties
• HomeProof
• International Construction Warranties (ICW)
• LABC New Home Warranty
• N.H.B.C. Guarantee
• One Guarantee
• Premier Guarantee Scheme
• Protek
• The Q Policy
• UK FINANCE Compliant Professional Consultants Certificate with proof of PI
• Zurich Municipal “New build”

Please note:

For developments previously holding a CRL warranty, a retrospective warranty will be accepted from one of the above providers subject to a site survey having been undertaken by the new warranty provider at the time the retrospective warranty was underwritten.

In all other circumstances, warranties must exist upon completion of the property and cannot be applied retrospectively.

For all remortgages the amount of capital being raised and its purpose must be established. It should also be ensured that independent legal advice is sought where appropriate. Capital raising for speculative investment such as purchasing cryptocurrencies / bitcoins is not permitted.

Where certified documents are required in support of an application, they should be certified by a suitable representative of the introducing broker or intermediary company. The certification will need to clearly show the following:

• The company name
• The certifier’s name and their position within the company
• The certifier’s signature
• The date

Where an applicant has been seen on a face to face basis:

• All submitted documents must be certified as follows ‘I certify this is a true copy of the original’
• Where the document contains a photograph it must also be certified as ‘a true likeness of the applicant’

Where an applicant has been seen on a non-face to face basis:

• All submitted documents must be certified as follows ‘I certify this is a true copy of the original’

ID and residency documents must be certified individually, for further details please see our Anti Money Laundering Guidelines.

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

Where you are unable to certify the applicant’s documentation Post Office certification is acceptable and we will require a fully completed Post Office Certification Form. Further information can be found at www.postoffice.co.uk/identity/document-certification.

For more information on our validation requirements for supporting documents, click here.

Where the valuation is returned with noted uncertainty regarding the building’s cladding or external wall system an EWS1 certificate with supporting covering letter from the certificate provider will be requested for review.

We are unable to consider any property where commercial usage exceeds 20%. The commercial element should not extend to light engineering, manufacturing, livestock, rearing or caring for domestic animals. “Home” office usage is acceptable however; such use should not include circumstances where clients are seen on the premises on a regular basis (e.g. dental surgery would not be acceptable).

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

Home office usage is acceptable providing that this does not involve clients being seen on the premises on a regular basis.

Consumer buy to let is accepted.

A mortgage application cannot be considered before a criminal conviction is spent.

We will accept applications where there is an element of capital raising for debt consolidation. We will require a fully completed debt consolidation form and where affordability is dependant on these debts being repaid, there will be a condition added to the offer.

Acceptable deposit sources

The deposit should come from the applicant’s own resources and have originated within the EEA without recourse to additional borrowing. 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

Unacceptable deposit sources

The following forms of deposit/incentive are not acceptable:

• Builder’s deposit - where the builder is offering any cash-based incentive (rather than a Builder’s second charge) e.g. discounted purchase price, stamp duty paid, legal fees paid, cash back after completion, mortgage paid etc. this will be deducted from the lower of the purchase price/valuation, and LTV will be calculated on the net figure.
• Purchase from a company in which the applicant has an interest.
• Forces Help to Buy.
• Ministry of Defence Loan.
• Cryptocurrencies - any deposit sourced via cryptocurrencies e.g. bitcoins, is not accepted.

Please see Vendor’s deposit, family purchase, and family gifted deposit for further information on these scenarios.

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

Where there is any material relationship between the employer and applicant / guarantor, income confirmation from an independent source is required. This is in addition to our standard income verification requirements.

Employed

Applicants must be in permanent employment. 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.

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

For applicants on a zero hours contract click here for more information.

Income verification may be required.

Applications where it’s confirmed that the minimum EPC rating for the mortgaged property is within band F or band G will be declined unless a valid exemption is in place.

A gifted deposit from an immediate family member is an acceptable source of deposit unless the property is being purchased from the family member who is providing the gift. Immediate family is classed as: spouse/civil partner, parents (including step parents), grandparents, siblings, children, aunt/uncle.

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.

Gifted deposits will not be accepted from anyone that will reside in and/or have an interest in the property but will not be party to the mortgage.

We will require a fully completed Gifted declaration form, click here to download a copy.

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

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.

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.

Please refer to the ‘Tariff of mortgage charges’ document for full details.

Lending to first time buyers or applicants who have not owned a UK property in the last 18 months is only permitted where another party to the application is not a first time buyer .

• 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.
• Minimum floor area 30m².

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

Ex-local authority flats or maisonettes may be considered. The block should be predominantly privately owned and will be subject to an individual underwriter review.

Studio flats are acceptable, click here for further details.

We can consider lending to foster carers on a case by case basis. Proof of income may be required and will be in line with our self-employed and income verification requirements.

Mortgage guarantors are acceptable for Limited Company applications. All company Directors and shareholders over the age of 21 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.

In all cases we will try to electronically verify the identity of the applicant. On occasion this is not possible and we will require certified documentary evidence to satisfy our requirements. The documentation you need to provide to us is detailed in our Anti-money laundering guidelines.

The following are acceptable sources of income:

Employed

*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 (owns 25% or more shares) - remunerations plus dividends.

Additional income

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

This is acceptable for limited company lending subject to:

• The majority shareholder to mirror across SPV and connected company.
• Must be UK to UK company (no offshore companies).
• Loan needs to be repayable, and a term agreed.
• The loan term must not exceed that of the mortgage.
• Rate of interest applied should be HMRC's 'Actual official rate' as a minimum.
• Connected company not to have any interest or charge over our security.
• Any monthly payment to be included in ICR calculation. This will be done by the Underwriter following review of the Loan Agreement. For an indicative maximum loan, use the Buy To Let Calculator by reducing the rental income by the loan payment. The full rental income must be declared on submission of the application.

A signed loan agreement must be provided which confirms that the loan is repayable, the term agreed, interest rate, monthly payment and that there is no interest or charge over the security property.

Let to Buy situations may be considered. Where the customer is raising funds on their existing residential property, then there must be a concurrent purchase of a new residential property and we will require evidence of this.

The remortgage and purchase must complete simultaneously.

Precise Mortgages will consider lending to business applicants providing they meet the following criteria:

• Must be a registered Limited Company set up with the specific purpose of buying property (SPVs);
• The business must have a UK registered address and must operate entirely within the UK;
• Each business must have a maximum of 4 directors/shareholders none of which may be another Limited Company.
• 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.

In all applications, Personal Guarantees will be required for all Directors. Additionally, all shareholders over the age of 21 will be required to provide a Personal Guarantee for which we require them to have obtained independent legal advice. There is no limit on the number of shareholders under the age of 21 subject to the shareholders being dependants of the Directors.

For Limited Company applications Precise Mortgages will accept a Direct Debit from a bank account in the name of:

• the Limited Company
• the sole director of the Limited Company
• more than one (but not necessarily all) director(s) of the Limited Company.

Limited company applications will require all directors/shareholder’s to provide a Personal Guarantee for which we require them to have obtained independent legal advice.

The legal advice can be provided by the solicitor acting as the conveyancer or a separate solicitor within the same company, providing that they are prepared to give the advice and ensure there is no conflict of interest.

Obtaining legal advice may incur additional costs for the customer and they should contact the acting conveyancer for details of this.

Applicants on maternity leave are acceptable. Where terms of employment are changing, e.g. reduction in hours, a letter from the employer addressed to the Group is required to evidence income confirming the following:

• Salary and working hours before commencing maternity leave;
• Return to work date;
• Salary and working hours after returning to work;
• Any changes to the applicant’s contract of employment.

Where the applicant is returning on the same terms, income will be assessed on pre-maternity salary evidenced by the 3 months’ payslips prior to maternity leave.

Remortgages are not acceptable where the security property has been owned for less than 6 months.

The exceptions to these rules are:

• Where the application is to exit a Precise Mortgages Bridging Loan. In these circumstances, the sswitch to a long term product may proceed at any time following advance of the Bridging Loan providing the underwriter is satisfied with the overall transaction; e.g. not flipping a discounted purchase.
• Where the property has recently been inherited – probate must have been granted prior to mortgage application and verification of this must be supplied ahead of the Mortgage Offer being granted. In these circumstances, no minimum period of property ownership applies.

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
• CALA Homes
• Crest Nicholson
• Galliford Try
• Persimmon
• Redrow
• Taylor Wimpey

A Multi-Unit property is a single structure that contains separate self-contained units or flats that are held on a single freehold title. Each unit must be completely self-contained and meet our property criteria in its own right- including minimum valuation and ICR calculations.

Applicant:

• Experienced landlords only - applicants must have held a buy to let property for at least 12 months prior to an application being made.
• Available for Personal ownership and Limited Company applications.

Loan:

• Tier 1 only.
• Maximum LTV - 70% up to £1,000,000, 75% up to £750,000, portfolio lending restrictions may also apply.
• Maximum loan amount- £1,000,000.
• The loan and rental calculations will be based on an aggregate of the individual unit values and rental values provided on the valuation report. If the valuation or purchase price is lower than the aggregated values, our lending will be based on the lower figure.

Property:

• Minimum valuation- £150,000 in London and £50,000 elsewhere (applies to each unit).
• Minimum of 2 and maximum of 6 units within a single block, each unit must be entirely self-contained.
• New build properties and properties defined as an HMO are not acceptable.
• The property must be entirely on a freehold title, any property with separate leases will not be accepted.
• Each unit must have a minimum floor area of 30m2.
• Multiple houses held on one freehold title are not acceptable.
• Holiday Lets are not acceptable.
• Any adverse planning restrictions that could prevent the creation of leases are not acceptable.
• Available for properties in England and Wales.

Please note: Homebuyers valuations are not available for Multi-unit properties.

UK nationals are acceptable providing they have a 3 year UK residential history. EU citizens and foreign nationals from outside of the EEA must have been resident in the UK for the last 3 years and have permanent rights to reside in the UK.

A full three year residential history is required for all applicants.

All applicants must be resident in the UK at the time of completion.

• UK Nationals that have resided abroad during the last three years can be approved by a discretionary mandate holder where:
• A temporary, overseas posting has been necessary as part of their employment;
• The underwriter is satisfied with the circumstances;
• Sufficient credit records are available; and
• The applicants are resident in the UK at the time of completion.

Non-UK Nationals must provide evidence of permenant rights to remain in the UK.

• European Economic Area (EEA) Nationals may provide a valid permanent residence document or documents evidencing that "settled" or "pre-settled" status has been granted under the EU Settlement Scheme.
• Non-EEA Nationals must provide evidence of permanent rights to remain in the UK.

• 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, we are unable to accept retrospective warranties.
• Any cash-based Builder’s incentive will not be acceptable, please see Unacceptable Deposit Sources for full details.

Please note: we are unable to consider New Build properties for Multi-Unit applications.

We may be able to consider applicant who are employed on an NHS Bank Nursing basis. Income from bank nursing will be treated as zero hours contract income. Where an applicant is a permanent employee of the NHS but earns additional pay from NHS Bank Nursing, we will only include the primary earnings in our affordability assessment.

Offers will be valid for 3 months from the valuation date. An offer extension may be considered (up to a maximum of 7 months from original valuation) on request from either a broker or a solicitor. For New Build offers click here.

Customers are able to make overpayments on their mortgage, should they wish to do so.

Customers should read our Customer Information Booklet and their Mortgage Offer for full details and whether early repayment charges would apply to the overpayments.

Click here for our existing customer website.

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

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.

No limit on the number or value held with other lenders.

A portfolio landlord has four or more mortgaged buy to let properties.

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.
• Pending buy to let purchase applications with Precise.

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

The portfolio validation process will include an assessment of the wider portfolio ICR and must be a minimum of 125% ICR at 5% pay rate and a maximum of 85% LTV.

Please refer to the following links for further guidance:

• Portfolio landlord
• Business plan, cash flow and assets and liabilities form
• Existing property portfolio details

All our products are not portable.

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.

If the applicant decides to change the product on the application after the mortgage product has been offered, a non-refundable administration fee of £70 is payable prior to the amended mortgage offer being issued.

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 with the exception of Multi-Unit properties. A “granny annexe” may be considered suitable, subject to the valuer’s comments.

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.

For details of unacceptable property types, click here.

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.

In all cases we will try to electronically verify the address history of the applicant. On occasion this may not be possible and we will require documentary evidence to verify the applicant's address history. We will need any document submitted to be correctly certified and be dated within the time period we have requested proof of address for. To see a full list of acceptable documents click here.

Click here to see our certification requirements.

Where a re-inspection is necessary after the initial valuation is carried out, there will be a fee of £80.

Where a mortgage product includes a refund of the valuation and/or the assessment fee this will be refunded on completion of the mortgage. If a Homebuyer’s Report was selected, we will refund an amount equivalent to our standard valuation and assessment fee.

Any refund will be included in the funds sent to the conveyancer or, if you have appointed your own conveyancer to act for you separately, the funds will be sent to our conveyancer. Applicants should contact their conveyancer to find out how fee refunds will be distributed.

Our Refurbishment Buy to Let product allows your customer to take advantage of the flexibility of Bridging Finance with the surety of an exit onto a Buy to Let Mortgage once the property has been refurbished (providing there is no change in circumstances and the property meets the expected valuation following refurbishment).

Each element of the loan should meet the relevant standard criteria. Customers must complete any refurbishment work within the buy to let offer validity period which will be 6 months from the valuation date.

Ideal for:

• Properties needing works to meet the minimum EPC rating, such as boiler replacement.
• Properties purchased at auction that require light refurbishment to be acceptable for mortgage purposes.
• Landlords choosing to refurbish in order to maximise the rental yield of their property.

Click here to access our Refurbishment Buy to Let guide.

Please note, acceptance of the refurbishment project is subject to a full underwriter review to ensure it is in keeping with our Refurbishment Buy to Let product.

Properties where the proposed works require Permitted Development Rights (PDR) or would be classed as heavy refurbishment are not currently accepted.

Refurbishment Buy to Let forms

• Personal ownership DIP/application form
• Limited Company DIP/application form
• Limited Company additional guarantor form
• Full mortgage application declaration

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

Precise Mortgages’ Bridging borrowers can remortgage on to a Precise Mortgages Buy to Let product after 1 month provided the underwriter is satisfied with the overall transaction, or this has been secured at the time of application by utilising our Refurbishment Buy to Let product.

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 are not acceptable and lending will be based on the current value of the property, which must represent suitable security.

Where an applicant has a shareholding of 25% or over, 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.

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.

Precise Mortgages are unable to consider any property being purchased under Shared Ownership or Key Worker Schemes.

We will consider a property that contains solar panels. The conveyancing solicitor would need to review the lease, if there is anything within the lease that can have an effect on the security property then we may not be able to consider your application. This could be an overriding interest in the property, or they have a right to take these solar panels down at any time, as this may cause damage to the property if they choose to do this.

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 Institution of Structural Engineers (www.istructe.org.uk)
• The Institution of Civil Engineers (www.ice.org.uk)

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.

We are able to consider student lets providing they meet our standard buy to let criteria. Properties similar to a Halls of Residence will not be accepted.

Student loans should be included in an applicant's credit commitments to give an accurate affordability assessment. If these are added to the application at a later date the loan amount we are able to offer may be affected.

• Minimum floor area of 30m²
• Must be self-contained with private facilities
• Maximum LTV 70%

Freehold - acceptable for houses. Freehold is unacceptable for flats/maisonettes with the exception of Multi-Unit properties.

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.

If the title to the property is leasehold and the freehold title is owned by the applicant, a relative of the applicant or a limited company the applicant is a director/shareholder, Precise Mortgages will require a charge over both the freehold and the leasehold.

The following types of property are not considered acceptable:

• Commercial Properties.
• Live/work units.
• Click here for unacceptable construction types.
• Any property affected by Japanese knotweed class A or B. Class C and D are acceptable. Class C will require a satisfactory management plan in place.
• 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.
• Property being purchased under any social housing schemes. We're 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.
• A property that 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).
• Any property with spray foam roof void insulation.
• Property has been purchased from a company that the applicant has an interest in.
• Property is subject to either a back-to-back or sub-sale agreement or has been owned by the vendor for less than 6 months.

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.

We can consider lending on unlicensed HMO properties, and where applicable, you should ensure the customer has made an application for a HMO license prior to submitting a case to us. The acting conveyancer should confirm the licensing status of the property.

If originals are not available, we are able to accept certified copies of any ID and Residency documents, subject to the following:

• The documents must be certified and dated within the last 3 months by an independent professional; e.g. Broker (if FCA regulated), Solicitor, Accountant etc. and not by an applicant, guarantor or close relative.
  Where an applicant has been seen on a face to face basis:
  
  • All submitted documents must be certified as follows ‘I certify this is a true copy of the original’
  • Where the document contains a photograph it must also be certified as ‘a true likeness of the applicant’
  Where an applicant has been seen on a non-face to face basis:
  
  • All submitted documents must be certified as follows ‘I certify this is a true copy of the original’

The name of the person and employer/firm certifying the documents must be clear.

Please refer to our Anti Money Laundering Guidelines for full details of our ID and Residency validation requirements.

Where a copy of an applicant’s ID documents have been obtained via a digital ID solution, we will require a copy of the customer’s digital report from one of the following companies:

• Amiqus
• CallCredit / TransUnion
• Credas
• Experian
• Equifax
• GBGroup
• LexisNexis
• Onfido
• TrustID
• Yoti

If originals are not available, the following are acceptable subject to the documents being fully legible and the underwriter having no concerns in respect of authenticity:

• Photocopies
• Scanned images
• Photographic images
• Digital images

Precise Mortgages retains the right to request original documentation when considered appropriate.

In all cases applicants are required to commit their own funds to the transaction. Any vendor deposit will be deducted from the lower of purchase price/valuation and lending will be based on the net figure.

We are committed to ensuring that our customers are supported, especially those with vulnerable circumstances. If a customer may require support or adjustments to be made, please contact us on 0800 116 4385 (option 1) to discuss what we can do to help.

If we identify that a customer may be vulnerable, we will contact you or the customer to gain a better understanding of the circumstances and what appropriate help we may be able to provide.

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.

Zero hour contracts are only permitted when the secondary applicant (i.e. not the main income earner) is employed on this basis. Payslips covering the last 6 months are required. Eligible income is the lower of the average pay from the last 3 months / last 6 months.

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.

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
• Ark Residential New Build Warranty
• BOPAS (Build Offsite Property Assurance Scheme) Modern Methods of Construction (MMC) only
• Build Assure (New Homes Structural Defects Insurance)
• Building Life Plans
• Build zone Structural Warranty
• Checkmate (Castle 10) New Home Warranty
• Global Home Warranties
• HomeProof
• International Construction Warranties (ICW)
• LABC New Home Warranty
• N.H.B.C. Guarantee
• One Guarantee
• Premier Guarantee Scheme
• Professional Consultants Certificate (previously an Architect’s Certificate).
• Protek
• The Q Policy
• UK FINANCE Compliant Professional Consultants Certificate with proof of PI
• Zurich Municipal “New build”

Please note:

For developments previously holding a CRL warranty, a retrospective warranty will be accepted from one of the above providers subject to a site survey having been undertaken by the new warranty provider at the time the retrospective warranty was underwritten.

In all other circumstances, warranties must exist upon completion of the property and cannot be applied retrospectively.

Capital raising will be considered for any legal purpose. The amount of capital being raised and its purpose must be established.

Where the valuation is returned with noted uncertainty regarding the building’s cladding or external wall system an EWS1 certificate with supporting covering letter from the certificate provider will be requested for review.

We are unable to consider any property where commercial usage exceeds 20%. The commercial element should not extend to light engineering, manufacturing, livestock, rearing or caring for domestic animals. “Home” office usage is acceptable however; such use should not include circumstances where clients are seen on the premises on a regular basis (e.g. dental surgery would not be acceptable).

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

Home office usage is acceptable providing that this does not involve clients being seen on the premises on a regular basis.

A mortgage application cannot be considered before a criminal conviction is spent..

We will accept applications where there is an element of capital raising for debt consolidation.

Where there is any material relationship between the employer and applicant / guarantor, income confirmation from an independent source is required. This is in addition to our standard and income verification requirements.

A gifted deposit from an immediate family member is an acceptable source of deposit unless the property is being purchased from the family member who is providing the gift. Immediate family is classed as: spouse/civil partner, parents (including step parents), grandparents, siblings, children, aunt/uncle.

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.

Gifted deposits will not be accepted from anyone that will reside in and/or have an interest in the property but will not be party to the mortgage.

We will require a fully completed Gifted declaration form, click here to download a copy.

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

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.

First-time buyers (any applicant that has not owned a property in the last 18 months) are not acceptable.

We can consider lending to foster carers on a case by case basis. Proof of income will be required in all instances in line with our self-employed income verification requirements.

Mortgage guarantors are acceptable for Limited Company applications. All company Directors are required to provide a Personal Guarantee for the mortgage. The directors added to the application must match to those registered with Companies House.

In all cases we will try to electronically verify the identity of the applicant. On occasion this is not possible and we will require certified documentary evidence to satisfy our requirements. The documentation you need to provide to us is detailed in our Anti-money laundering guidelines.

The following are acceptable sources of income:

Employed

*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 (owns 25% or more shares) - remunerations plus dividends.

Additional income

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

This is acceptable for limited company lending subject to:

• The majority shareholder to mirror across SPV and connected company.
• Must be UK to UK company (no offshore companies).
• Loan needs to be repayable, and a term agreed.
• The loan term must not exceed that of the mortgage.
• Rate of interest applied should be HMRC's 'Actual official rate' as a minimum.
• Connected company not to have any interest or charge over our security.

A signed loan agreement must be provided which confirms that the loan is repayable, the term agreed, interest rate, monthly payment and that there is no interest or charge over the security property.

Applicants on maternity leave are acceptable. Where terms of employment are changing, e.g. reduction in hours, a letter from the employer addressed to the Group is required to evidence income confirming the following:

• Salary and working hours before commencing maternity leave;
• Return to work date;
• Salary and working hours after returning to work;
• Any changes to the applicant’s contract of employment.

Where the applicant is returning on the same terms, income will be assessed on pre-maternity salary evidenced by the 3 months’ payslips prior to maternity leave.

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
• CALA Homes
• Crest Nicholson
• Galliford Try
• Persimmon
• Redrow
• Taylor Wimpey

A Multi-Unit property is a single structure that contains separate self-contained units or flats that are held on a single freehold title. Each unit must be completely self-contained and meet our property criteria in its own right, including minimum valuation and ICR calculations.

Applicant:

• Experienced landlords only.
• Available for Personal ownership and Limited Company applications.

Loan:

• Maximum loan amount – £1,000,000.
• The loan and rental calculations will be based on an aggregate of the individual unit values and rental values provided on the valuation report. If the valuation or purchase price is lower than the aggregated values, our lending will be based on the lower figure.
• Available for non-regulated bridging finance and refurbishment buy to let.

Property:

• Minimum valuation – £150,000 in London and £50,000 elsewhere (applies to each unit).
• Maximum of 6 units within a single block, each unit must have a separate tenancy agreement.
• New build properties and properties defined as an HMO are not acceptable.
• The property must be entirely on a freehold title, any property with separate leases will not be accepted.
• Each unit must have a minimum floor area of 30m².
• Multiple houses held on one freehold are not acceptable.
• Holiday Lets are not acceptable.
• Any adverse planning restrictions that could prevent the creation of leases are not acceptable.
• Available for properties in England and Wales.

Please note: AVMs are not permitted for Multi-Unit properties.

UK nationals are acceptable providing they have a 3 year UK residential history. EU citizens and foreign nationals from outside of the EEA must have been resident in the UK for the last 3 years and have permanent rights to reside in the UK.

A full three year residential history is required for all applicants.

All applicants must be resident in the UK at the time of completion.

• UK Nationals that have resided abroad during the last three years can be approved by a discretionary mandate holder where:
• A temporary, overseas posting has been necessary as part of their employment;
• The underwriter is satisfied with the circumstances;
• Sufficient credit records are available; and
• The applicants are resident in the UK at the time of completion.

Non-UK Nationals must provide evidence of permenant rights to remain in the UK.

• European Economic Area (EEA) Nationals may provide a valid permanent residence document or documents evidencing that "settled" or "pre-settled" status has been granted under the EU Settlement Scheme.
• Non-EEA Nationals must provide evidence of permanent rights to remain in the UK.

Maximum of 4 applicants.

Limited company application – maximum 4 qualifying directors.

Offers will be valid for 3 months from the valuation date. An offer extension may be considered on request from either a broker or a solicitor.

Any person over the age of 17 that will reside in the property after completion but will not be party to the mortgage, will need to be entered on the application in the 'other occupants' section. They will be required to complete a Deed of Consent to surrender interest in the property. Anyone over the age of 24 will require independent legal advice.

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
• 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, or owned by other companies of which the directors are a 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.

We will require the following forms for all portfolio landlord applications:

• Business plan, cash flow and assets and liabilities form
• Existing property portfolio details

All our products are not portable.

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.

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.

In all cases we will try to electronically verify the address history of the applicant. On occasion this may not be possible and we will require documentary evidence to verify the applicant's address history. We will need any document submitted to be correctly certified and be dated within the time period we have requested proof of address for. To see a full list of acceptable documents click here.

Click here to see our certification requirements.

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 with the exception of Multi-Unit properties. A “granny annexe” may be considered suitable, subject to the valuer’s comments.

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.

For details of unacceptable property types, click here.

Where a re-inspection is necessary after the initial valuation is carried out, there will be a fee, please refer to our Tariff of mortgage charges.

Our Refurbishment Buy to Let product allows your customer to take advantage of the flexibility of Bridging Finance with the surety of an exit onto a Buy to Let Mortgage once the property has been refurbished (providing there is no change in circumstances and the property meets the expected valuation following refurbishment).

Our Refurbishment Buy to Let proposition is ideal for landlords who are looking to make changes to a property that can be completed within 6 months and which are either:

Light Refurbishment or,

works completed under Permitted Development Rights where there is no change to the footprint or structure of the property (categorised as heavy refurbishment).

Projects that will take longer than 6 months to complete should use our standard bridging proposition.

Each element of the loan should meet the relevant standard criteria. Customers must complete any refurbishment work within the buy to let offer validity period which will be 6 months from the valuation date.

Ideal for:

• Landlords looking to change the use of a property to a small HMO with up to 6 bedrooms.
• Landlords wishing to change the use of a garage to a habitable room.
• Properties needing works to meet the minimum EPC rating, such as boiler replacement.
• Properties purchased at auction that require light refurbishment to be acceptable for mortgage purposes.
• Landlords choosing to refurbish in order to maximise the rental yield of their property.

Please note, acceptance of the refurbishment project is subject to a full underwriter review to ensure it is in keeping with our Refurbishment Buy to Let product.

Properties where the proposed works require Permitted Development Rights (PDR) or would be classed as heavy refurbishment are not currently accepted.

Click here to access our Refurbishment Buy to Let guide.

We will accept remortgage applications 6 months after the original purchase date will be considered on an individual basis although any increase in value will require explanation.

We will only accept advised sales on a retained interest basis.

We are unable to consider any property that may have a restricted occupancy clause within the planning permission.

This is required on any application where a form of refurbishment is to be completed.

Click here to download a copy of the form.

Where a company director owns 25% or more of the company shares, they will be treated as self-employed.

Applicants should normally have been self-employed for a minimum of 2 years.

Income verification will be required where an exit strategy is by way of refinancing a residential property. In all other instances we will contact you to request income verification if required.

If your customer wishes to use a conveyancer that is not on our approved panel to act on their behalf they are able to do so, but will be responsible for paying all the conveyancing fees involved on the transaction for both their chosen conveyancer and those acting on behalf of Precise Mortgages. We will require a conveyancer to be selected from the approved panel to act on behalf of Precise Mortgages. Click here for further details.

We are unable to consider any property purchased under any social housing schemes (e.g. Right to Buy, Shared Ownership, Key Worker etc.).

Additionally, we are unable to consider remortgaging any property purchased under any scheme where the original vendor retains any interest or where any pre-emption clause remains.

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)
• Drainage report

Any specialist report should be prepared by a reputable firm. We will contact you if any of these reports are required.

We will consider a property that contains solar panels. The conveyancing solicitor would need to review the lease, if there is anything within the lease that can have an effect on the security property then we may not be able to consider your application. This could be an overriding interest in the property, or they have a right to take these solar panels down at any time, as this may cause damage to the property if they choose to do this.

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

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

• The Institution of Structural Engineers (www.istructe.org)
• The Institution of Civil Engineers (www.ice.org.uk)
• The Royal Institution of Chartered Surveyors (RICS) - building surveyor

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.

We are able to consider student lets providing they meet our standard buy to let criteria. Properties similar to a Halls of Residence will not be accepted.

• Minimum floor area of 30m²
• Must be self-contained with private facilities
• Maximum LTV 70%

Freehold - acceptable for houses. Freehold is unacceptable for flats/maisonettes with the exception of Multi-Unit properties.

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.

If the title to the property is leasehold and the freehold title is owned by the applicant, a relative of the applicant or a limited company the applicant is a director/shareholder, Precise Mortgages will require a charge over both the freehold and the leasehold.

If construction is non-traditional contact us for acceptability.

The following types of property are not considered acceptable:

• Live/work units or any property where commercial usage exceeds 20% will not be accepted.
• Any property affected by Japanese knotweed class A or B. Class C and D are acceptable. Class C will require a satisfactory management plan in place.
• Any property deemed unsuitable security by the valuer.
• Any property where there is ongoing movement/monitoring is required.
• Any property with spray foam roof void insulation.
• 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. We are unable to consider remortgaging any property purchased under any 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).

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.

We can consider lending on unlicensed HMO properties, and where applicable, you should ensure the customer has made an application for a HMO license prior to submitting a case to us. The acting conveyancer should confirm the licensing status of the property.

Please refer to our Anti Money Laundering Guidelines for full details of our ID and Residency validation requirements.

Where a copy of an applicant’s ID documents have been obtained via a digital ID solution, we will require a copy of the customer’s digital report from one of the following companies:

• Amiqus
• CallCredit / TransUnion
• Credas
• Experian
• Equifax
• GBGroup
• LexisNexis
• Onfido
• TrustID
• Yoti

If originals are not available, the following are acceptable subject to the documents being fully legible and the underwriter having no concerns in respect of authenticity:

• Photocopies
• Scanned images
• Photographic images
• Digital images

Precise Mortgages retains the right to request original documentation when considered appropriate.

In all cases applicants are required to commit their own funds to the transaction. Any vendor deposit will be deducted from the lower of purchase price/valuation and lending will be based on the net figure.

We are committed to ensuring that our customers are supported, especially those with vulnerable circumstances. If a customer may require support or adjustments to be made, please contact us on 0800 116 4385 (option 1) to discuss what we can do to help.

If we identify that a customer may be vulnerable, we will contact you or the customer to gain a better understanding of the circumstances and what appropriate help we may be able to provide.

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.

Zero hour contracts are only permitted when the secondary applicant (i.e. not the main income earner) is employed on this basis. Payslips covering the last 6 months are required. Eligible income is the lower of the average pay from the last 3 months / last 6 months.