Precise Mortgages up for sale

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Precise Mortgages is seeking a new backer to fuel its growth ambitions, Money Marketing sister-title Mortgage Strategy understands.

The lender appointed Deloitte in the summer to alert potential buyers, although it is understood the information memorandum will be sent to firms in the coming days. The sale includes all companies under the Charter Court Financial Services umbrella, including its savings bank.

Sources say Precise is in talks with several potential buyers.

A sale is not certain, however, and Precise’s main shareholder and funder, Elliott Associates, may decide to hold onto the specialist lender. It has been an investor since 2008.

Precise’s directors are understood to be planning to float the lender on the stock market within the next few years regardless of whether it is sold or not.

A Precise spokesman says: “We don’t comment on market speculation.”

Precise, which launched in 2010, currently operates in the buy-to-let, residential, bridging and second charge markets and lent £1.6bn to borrowers in 2015. Its figures show it has just six accounts in arrears and 94 per cent of its lending is to prime borrowers, according the FCA definition.

In March last year, Precise parent Charter Court Financial Services launched Charter Savings Bank after being granted a banking licence. It currently has around 36,000 savings accounts on its books, with balances of £1.5bn.