Precise Mortgages has launched its first product range for home owners following its recent FSA approval to provide residential mortgages.
The range is aimed at credit-impaired borrowers, first-time buyers and the self-employed. The lender says it is looking for mature borrowers with substantial deposits.
The products will only be available on a capital and interest repayment basis and are limited to size and certain property types.
Proof of income is required in all cases and all products are three-year capped trackers, with a cap of 3 per cent above current pay rate, protecting borrowers against rate rises of more than 3 per cent for three years.
The range includes a three-year capped tracker with a rate of 4.99 per cent at 70 per cent loan-to-value. All products carry a product fee of 1.5 per cent, payable upon completion.
Precise Mortgages chief executive Ian Lonergan says: “Many borrowers have been excluded from the mortgage market as high street lenders have moved towards ‘super prime’ borrowers; our range of products is designed to help these disenfranchised borrowers.
“Precise Mortgages is completely focused on writing good quality responsible mortgage loans. Bringing new funding will make a positive difference to the UK market, and as we prove the quality of our lending we hope to be able to increase the volume of lending.”
Managing director Alan Cleary says: “Similar underwriting criteria can be found on the high street, and whilst our lending approach is equally responsible and rigorous, our difference is that we have a new dedicated source of funding for borrowers who can prove their income and affordability, but are being squeezed off the high street currently.”