Precise Mortgages is a UK specialist lender that was founded in 2010 to serve an underserved mortgage market by offering products to borrowers who were struggling to meet the strict lending criteria of high-street banks post-financial crisis. One of the key products Precise Mortgages introduced early on was bridging loans in 2011.
In this article, I will take a closer look at Precise Mortgages and examine the key features, requirements, and benefits of their bridging loan products.
I’ll examine how their products work, who they best serve, and how bridging loans can facilitate property transactions when timing is critical.
Key Features of Precise Mortgages Bridging Loans
- Loans from £50,000 up to £3 million – Precise Mortgages offers large bridging loans up to £3 million and has no maximum loan amount. This accommodates a wide range of financing needs.
- No exit fees or early repayment charges after 1 month – Borrowers only pay interest for a minimum of 1 month. There are no exit fees when repaying the loan after this period. This provides flexibility.
- Up to 75% LTV for standard and tier 1 refurbishment loans – The high maximum LTV allows borrowers to access substantial financing compared to other lenders.
- Accepts first and second charge security – Precise accepts a first charge loan plus additional second charge security. This may allow higher LTVs than permitted on a single first charge.
- Purchase, refinance, and light refurbishment options – Borrowers can use Precise’s bridging loans for home purchases, refinancing, or light renovations. This caters to a wide range of needs.
- Retained interest or monthly payments – Applicants choose between paying interest upfront for the loan’s full term or making monthly interest payments. This provides payment flexibility.
- Fast access to financing – Precise can typically provide a quicker lending decision compared to longer-term mortgages, helping borrowers meet tight deadlines.
- Dedicated underwriter support – Applicants have access to an expert underwriter throughout the process for a smooth customer experience.
Precise Mortgages Bridging Loan Fees, Charges and Interest Rates
Interest Rates
| Product | Up to 65% LTV | Up to 70% LTV | Up to 75% LTV |
|---|---|---|---|
| Standard Bridging | 0.74% pm | 0.79% pm | 0.84% pm |
| Tier 1 Refurbishment | 0.74% pm | 0.79% pm | 0.84% pm |
| Tier 2 Refurbishment | 0.79% pm | 0.84% pm | 0.89% pm |
Fees
- Arrangement Fee: 2% of loan amount
- Assessment Fee: £145
- Telegraphic Transfer Fee: £25
- Redemption Fee: £40
Valuation Fees
| Purchase Price | Standard Bridging (AVM) | Standard & Tier 1 Refurb | Tier 2 Refurb | HMO/Multi-Unit |
|---|---|---|---|---|
| Up to £100k | £0 | £265 | £465 | £500 |
| Up to £150k | £0 | £300 | £465 | £500 |
| Up to £200k | £0 | £335 | £480 | £515 |
| Up to £300k | £0 | £360 | £550 | £585 |
| Up to £400k | £0 | £385 | £610 | £645 |
| Up to £500k | £0 | £430 | £670 | £705 |
| Up to £600k | £0 | £480 | £735 | £770 |
| Up to £700k | £0 | £530 | £795 | £830 |
| Up to £800k | £0 | £585 | £905 | £940 |
| Up to £900k | £0 | £640 | £980 | £1,015 |
| Up to £1m | £0 | £735 | £1,050 | £1,085 |
| Over £1m | Contact Precise Mortgages |
What are the Precise Mortgages Bridging Loan Criteria?
- Borrower age: Must be at least 21 years old at the time of application and no more than 85 years old at the end of the loan term.
- Borrower type: Individuals, limited companies, SPVs, and experienced landlords are all accepted. Limited companies must have a maximum of 4 qualifying directors.
- Loan purpose: Loans are available for purchase, refinance, or light refurbishment.
- Loan terms: Minimum term of 1 month and maximum term of 18 months for non-regulated loans.
- Loan size and LTV limits: Minimum loan size of £50,000 and no maximum loan amount. Up to 75% LTV for loans under £1 million, 70% LTV for loans £1-2 million, and 60% LTV for loans over £2 million. Maximum 90% LTV including fees.
- Property value and location: Minimum property value of £75,000 in mainland England and Wales and £100,000 in London. Loans are available for properties in selected Scottish postcodes. Houses, flats, HMOs up to 6 rooms, and multi-unit blocks up to 6 units are all accepted.
- Credit history: Defaults and CCJs must be satisfied before applying. Bankruptcy and IVA discharge periods must have passed. Mortgage and rent arrears should be resolved.
- Affordability assessment: Proof of income is required for residential refinance. Bank statements and portfolio reviews are required for other purposes. Underwriters will assess the applicant’s ability to repay the loan at the end of the term.
Precise Mortgages Refurbishment Buy to Lets
This product combines bridging finance with an eventual buy-to-let mortgage in one application, allowing landlords to fund light refurbishments or renovations under Permitted Development Rights.
Key Features:
- Light refurbishment works completed within six months
- Purchase and refinance options up to 75% of the property value
- Bridging term up to 6 months
- Buy to let mortgage offer valid for six months
- Single application for both loan parts
Benefits:
- Fund upgrades and maximize rental yields
- Bridge the renovation period while securing long-term financing
- Streamline the process into a single application
Ideal for:
- Landlords looking to convert a residential property into an HMO of up to 6 rooms
- Landlords looking to convert a garage into a habitable living space
- Landlords looking to carry out renovations to meet minimum EPC requirements
- Landlords looking to purchase a run-down property at auction and refurbish
Criteria:
- Experienced landlord applicants only
- Minimum property value £75,000
- Maximum loan amount £3 million
- Maximum 6 months to complete works
- No heavy refurbishment or structural changes
Precise Mortgages Reviews
On Trustpilot, Precise Mortgages has 3,651 reviews and an overall ‘great’ TrustScore of 4 out of 5 stars. They reply promptly to their reviews and clearly prioritise good customer communication.
However, on Smart Money People, reviews are more negative, with a low average rating of 1.92 out of 5 based on 24 reviews.
Positive Feedback:
- 71% of Trustpilot reviews are five stars, praising efficient service and quick mortgage processes.
- A few Smart Money People reviewers said Precise fulfilled promises as expected.
Negative Feedback:
- 75% of Smart Money People reviews are just 1 star. Complaints include poor communication and difficult processes.
- Trustpilot reviews also note inconsistent service speeds and bureaucratic mortgage processes.
- 9% of Trustpilot reviews are 1 star, warning others to avoid Precise Mortgages entirely.
Key Takeaways:
- Precise Mortgages enjoys a largely positive reputation on Trustpilot based on a significant volume of reviews.
- However, negative feedback on Trustpilot, especially from Smart Money People, indicates that some customers face major issues.
- Reviews suggest Precise Mortgages delivers a smooth mortgage experience for many, but customer service and communication challenges persist for others.
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Precise Mortgages FAQ
What sets Precise Mortgages’ Bridging Finance products apart from other lenders?
Precise Mortgages offers a range of regulated and non-regulated Bridging Finance options, catering to residential and experienced property investors’ needs.
How do the terms differ between regulated and non-regulated Bridging Finance options with Precise Mortgages?
The regulated Bridging Finance has a maximum term of 12 months, while non-regulated Bridging Finance extends up to 18 months
For which properties or scenarios is Precise Mortgages Bridging Finance the best?
Precise Mortgages Bridging Finance is ideal for purchasing a property at auction, expanding a property portfolio, capital raising, and chain-break finance.
What is the role of Automated Valuation Models (AVMs) in Precise Mortgages’ Bridging Finance products?
AVMs are offered for standard Bridging Finance products up to 60% LTV to expedite the process and allow quick funding.
Is there a maximum loan amount for Precise Mortgages’ Bridging Finance products?
No, there is no maximum loan amount specified for both regulated and non-regulated Bridging Finance products.
What are the legal representation options provided by Precise Mortgages in bridging finance?
Precise Mortgages offers joint or separate legal representation in England and Wales to help control costs.
