Precise Mortgages boosts its buy to let affordability options

Precise Mortgages boosts its buy to let affordability options

0:03 AM, 26th September 2023, About A year ago

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Precise Mortgages has announced changes to its buy to let affordability criteria that could benefit personal ownership and limited company clients.

The lender, which is part of OSB Group, says it has simplified the minimum interest cover ratio (ICR) for personal ownership applications.

It has also improved how they assess buy to let affordability on short-term fixed rates and variable rate trackers.

Precise says the changes provide more financing options for personal ownership and BTL mortgage clients seeking larger loans and should interest higher rate and additional rate taxpayers.

‘Offer brokers increased affordability options’

OSB’s group intermediary director, Adrian Moloney, said: “These changes offer brokers increased affordability options at a time when their clients may be struggling to find suitable financial solutions.

“The ICR simplification will allow higher and additional rate landlords to access loan amounts which may have been out of reach, whilst our improved assessment rates will benefit limited companies through boosted finance opportunities and a wider choice of product options, which could support portfolio growth.”

Minimum ICR for higher rate and additional rate taxpayers

The key highlights from Precise include a minimum ICR for higher rate and additional rate taxpayers which will now be 140% – it was 145% previously for higher rate and 160% for additional rate taxpayers.

The stress rate for short-term fixed interest rates and variable rate trackers will now be assessed at pay rate plus 1.55% (minimum 5.50%).

And the offer is applicable to single rental property and HMOs for all purchase and remortgage applications.

‘Pragmatic changes from Precise Mortgages’

Matthew Rowne, a director of The Buy to Let Broker, said: “Although there wasn’t a base rate rise this month, economic uncertainty remains and these pragmatic changes from Precise Mortgages offer our clients enhanced opportunities.

“Of particular interest will be access to larger loan sizes so these changes are certainly welcomed.”


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