Precise Mortgages is set to enter the prime residential market for the first time with a range of products to compete on price with the large high-street lenders, Money Marketing understands.
It is thought Precise is close to securing funding for the new range, which could launch this week, and will contain remortgage and home purchase products.
It is understood the range could be limited to the South-east when it launches although distribution could be widened in the future.
The lender currently offers near-prime trackers from 4.61 per cent and fixed rates from 5.19 per cent, with loan-to-values from 70 per cent to 85 per cent.
Precise, which launched in November 2010, has only offered buy-to-let and near-prime products to date.
Precise Mortgages refused to comment.
London & Country associate director of communications David Hollingworth says: “It is really positive to see one of the smaller non-bank lender wanting to make a serious play at competing with the bigger lenders. The challenge will be how Precise keeps its underwriting criteria as bespoke as it is currently.”
Chadney Bulgin mortgages partner Jonathan Clark says: “Brokers will be more concerned about whether it keeps underwriting applications on a case-by-case basis. If it can do that, brokers will be very happy and it will help people who are unable to be placed elsewhere.”