Precise Mortgages are one of the many lenders currently competing for a spot in the booming buy to let market following the release of its exclusive buy to let range. Including loans for up to £500k at 80% loan to value (LTV), £500k to £1m at 70%, and £1m+ at 60%, the lender’s latest offers look likely to steal the reduced rate show.
London buy to let properties generally have low rent compared to the property value, meaning rent calculations are normally higher – thus restricting the amount of borrowing available. Precise Mortgages’ latest products are lower as they use the pay rate for rental calculations instead. This is great news for property professionals, providing the opportunity to borrow more against the property and ultimately release more equity.
The lender has now updated its buy to let offering and released the following products:
- 3.7% lifetime tracker at 70% LTV with a 2 year early repayment charge (ERC)
- 3.8% lifetime tracker at 75% LTV with a 2 year ERC – both with a 1.5% fee up and loan size up to £3m
- 3.7% lifetime tracker at 75% LTV with a 3 year ERC and a 1.75% fee
- 3.5% lifetime tracker at 70% LTV with a 3 year ERC and 2% fee
- 3.6% lifetime tracker at 65% LTV with a 1.5% fee and loan size of up to £3m
All lifetime tracker mortgages’ minimum rental coverage is calculated at the product rate rate (also called the pay rate) of 125%, with no minimum income needed for loans up to £1m. The following buy to let exclusives are also available from the lender:
- 3.45% lifetime tracker at 70% LTV
- 3.55% lifetime tracker at 75% LTV – both with a 2% fee
- 3.99% 5 year fixed rate at 75% LTV with a 2% fee (rental covered is calculated at 4.1%)
Precise Mortgages are welcoming customers with flexible criteria not readily available on the high street, accepting three years tenancies, private pensions as a source of income and lending up to the age of 85.
As the lender’s latest range offers mainly lifetime trackers with 5 year fixed rates, there’s no need to worry about remortgaging for quite some time. The same products also apply to let to buy customers.
Antonio Michael, Senior Broker at high net worth specialists, Enness Private Clients, described how these changes would not only help clients make the most of their investment portfolio, but how “refreshing it is to have a lender in touch with property professionals and the London rental market.” You cannot ignore the surge in buy to let demand recently, so with offers such as these, Precise Mortgages prove it is a lender keen to lend more while others are making it tougher for clients.
In addition to this, the lender has released a 3.79% prime lifetime tracker at 70% LTV with a 2% fee, and a 3.99% lifetime tracker at 75% LTV with a 2% fee. Precise Mortgages will allow up to 10 buy to let properties with a total aggregate debt limit of £5m, as well as offering 80% LTV deals for New Build flats if the loan is below £500k.