buy to let mortgages

Precise Mortgages

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Precise Mortgages Buy to let Lending Criteria

Precise Mortgages
1 Charter Court Wolverhampton WV10 6TD
Website: http://www.precisemortgages.co.uk/

Advances
Up to £1,000,000 70% LTV (Rmg 70%)

Max LTV 80%

Notes
Illustration Type = ESIS. Mortgage NOT portable
You cannot transfer this mortgage to another property. If you sell the property you must repay the loan together with any early repayment charges and other fees detailed in this section.
– Mortgage is NOT for First time buyers Multi Units available:
Maximum of 6 self-contained flats/ units within a single block Available to max LTV of 70% LTV
Max Loan size £1,000,000 In England and Wales only
Minimum floor space of 30 meters squared for each Unit
Available in England, Wales and Scotland.

Limited Company acceptable.
You are free to make lump sum or regular overpayments on this mortgage, however any early repayment charges shown in Section 10 will apply if you do this within the period that the early repayment charges apply.
We will not change the balance on which we charge interest or your monthly payment after you have made an overpayment or lump sum payment unless you ask us to in which case we will apply the overpayment/lump sum payment to your account in accordance with the General Mortgage Conditions.
The product is available for loans above £40,000.
The conveyancing work on behalf of Precise Mortgages must be carried out by a conveyancer on our panel. If you
choose to instruct a conveyancer that is not on our panel, we will instruct a conveyancer from our panel and you will be responsible for our legal fees as well as those of your own conveyancer.
Buy to Let : Accepted Let to Buy : Accepted
Capital Rest Period : Daily

Repayment Types
Repayment Yes
Endowment 75% LTV
PEP 75% LTV
Pension 75% LTV
Interest only (no RV) 75% LTV
With Profits No
Unit Linked No
ISA 75% LTV

Split Repayment No

Fees

Arrangement : Varies Can be Added
Booking : None

Early Repayment Charges

Higher Lending
None

Valuation
Basic:
up to £100,000 – £370
up to £150,000 – £410
up to £200,000 – £445
up to £250,000 – £465
up to £300,000 – £485
up to £350,000 – £525
up to £400,000 – £560
up to £450,000 – £590
up to £500,000 – £630
up to £600,000 – £695
up to £700,000 – £750
up to £800,000 – £810
up to £900,000 – £920
up to £1,000,000 – £975
up to £1,250,000 – £1090
Homebuyers:
up to £100,000 – £570
up to £150,000 – £600
up to £200,000 – £650
up to £250,000 – £705
up to £300,000 – £770
up to £350,000 – £815
up to £400,000 – £900
up to £450,000 – £955
up to £500,000 – £1045
up to £600,000 – £1105
up to £700,000 – £1155
up to £800,000 – £1205
up to £900,000 – £1255
up to £1,000,000 – £1405 up to £1,250,000 – £1655

Min Valuation £100000 Re-inspection fee £100

The £180 assessment fee included in the Valuation fee quoted above is non-refundable

Telegraphic Transfer Fee – £25.00 Payable upfront. Mortgage Exit Fee – £114.00 Payable on redemption.
Lenders Conveyancing Fee – £414.00 Payable upfront. A non-refundable legal fee payable before the work starts for the conveyancing work carried out by our conveyancer for the mortgage only. It is an estimated fee excluding disbursements (such as search and registration fees) and covers the mortgage only. You are responsible for paying this legal fee and any disbursements. The total cost of this legal work may be higher and you should ask for a detailed quotation before going ahead. You will also have to pay the additional legal fees charged by any conveyancer you instruct for any conveyancing work carried out by them on your behalf

Acceptable Property Types

Freehold Flat No
Purpose Built Flat Yes
Converted Flat Yes
Flat Over Shop Refer
Maisonette Yes

Studio Flat Yes
Flying Freehold Refer
Thatched Yes
Timber Framed Refer
Concrete Refer
Agricultural Tie No
Flat Over 4 Storeys Yes
Listed Building No

Right to Buy
Not Accepted

New Build acceptable. Available in England, Wales and Scotland. Flats and house to maximum LTV allowable on the product
Max number of bedrooms is 6.

Minimum property value £50,000 or £150,000 in London postcode districts

We can consider flying freeholds provided the percentage does not exceed 10% of the total area. The valuer must comment and confirm total percentage.

Ex-local authority flats and maisonettes are not normally accepted but may be considered on an individual basis We accept ex local authority houses as long as they are not in the pre-emption period.
Flats over 4 storeys accepted, but not exceeding 15 storeys. Please note that standard Buy to Let lending criteria applies High rise blocks are accepted up to 20 storeys.
Tenancy term allowable up to 36 months

Tax calculations are allowed as an alternative to SA302s.
– Both Tax calculations and SA302s need to be accompanied by a Tax Year Overview document. Let to Buy is allowed, but restricted to cases where an onward purchase of a new residential home.
A single customer can have up to 20 properties allowed with Precise Mortgages. For properties 11 – 20 LTV is capped at 70% and maximum exposure remains at £10m.

Applications one to five – standard LTV limits
A customer is allowed up to five individual Buy-to-Let loans (subject to a total maximum exposure of £10m) at the following limits:

Loan Amount
Up to £500,000 LTV Limit
80%
Up to £750,000 75%
Up to £1,000,000 70%
Up to £2,000,000 60%
Applications six to ten – upper limit of 75% LTV
A customer is allowed up to five further individual Buy-to-Let loans (subject to a total maximum exposure of £10m) at the following limits:

Loan Amount
Up to £750,000 LTV Limit
75%
Up to £1,000,000 70%
Up to £2,000,000 60%
Applications eleven to twenty – upper limit of 70% LTV
A customer is allowed up to ten further individual Buy-to-Let loans (subject to a total maximum exposure of £5m) at the following limits:
Loan Amount LTV Limit
Up to £1,000,000 70%
Up to £2,000,000 60%

Unlimited with other lenders

Portfolio criteria will be assessed at underwriting stage.

Maximum Portfolio limit: 20 properties to a max aggregate of £10,000,000, unlimited with other lenders Studio flats must have a minimum floor area of 30m2 and be limited to 70% LTV.
Accepted Locations : England, Scotland, Wales

Requirements

Bank Statements No
At Least 3 Months Pay Slips No
P60 No
Proof Of Residency Yes
Life Policy To Be Assigned No
Previous Lender References Yes

Insurance
Buildings Conditional

Conditions On Loan
Min Loan £40,000/Rmg £40,000
Max Loan £1,000,000/Rmg £1,000,000
Max Portfolio of BTL Loans £10,000,000
Min Age 21 years
Max Age 110 years
Min Term 5 years
Max Term 35 years
Refurbishment Buy to Let: This BTL product is also available as part of our Refurbishment Buy to Let proposition. This allows Bridging Finance (for refurbishment) and the BTL mortgage Offer to be achieved simultaneously, providing the security of exit onto a long-term BTL from day 1. The proposition is offered through a dedicated support team who should be contacted on 0800 116 4385.
The maximum age is 80 years at the date of application (with a maximum term of 30 years)

No bank statements are required however we do reserve the right to ask for bank statements if the underwriter needs clarification

Product switching fee If the applicant decides to change the product on the application after the mortgage product has been offered, a non-refundable administration fee of £120 is payable prior to the amended mortgage offer being issued.

The following forms of deposit / incentive are not acceptable: Builder’s Deposit
Family Gift (If the property is being purchased from a family member) Vendor’s Deposit/Discounted purchase price
Purchase from family at discounted purchase price

Non-EEA Nationals will be considered for mortgage purposes. Cases must be of good quality where a satisfactory assessment of the applicant(s) can be undertaken and satisfactory status established. This must include the following: Confirming a continuous 3-year UK residential track record (with associated credit bureau data), An on-going right to reside in the UK.

Any landlord with 4 or more properties (or with three mortgaged properties and an application with Precise Mortgages) will be a classed as portfolio landlord. For portfolio landlords, we will require that the following additional documents be submitted to Precise Mortgages:
-Business Plan – any format, on our forms, Excel spreadsheet or any form of documentation
-Personal Assets and Liabilities Statement – any format, on our forms, Excel spreadsheet or any form of documentation
-Existing Residential Property Portfolio details – any format, on our forms, Excel spreadsheet or any form of documentation
-Last 3 months Bank Statements showing rental income and mortgage payments

Landlords existing portfolio will be subject to a viability check, please refer to Precise Mortgages for assessment of existing portfolios.

Zero Hour Contracts – Zero hour contracts are now permitted for the secondary applicant (i.e. not the main income earner) where they are employed on this basis. Payslips covering the last 6 months and the latest P60 are required. Eligible income is the lower of the average pay from the last 3 months / last 6 months.

Sub letting agreements direct with the council will not be accepted.

You must arrange building insurance on the property in accordance with the General Mortgage Conditions. Foreign Citizens Accepted
Ex-Patriates Not Accepted

Income Multipliers

Rental income must be 110% of the monthly mortgage payments when calculated using a rate of 5.50%.

Min months in current position 6
Min months in continuous service 12
Min no. of years accounts 1
Average years taken to calculate income Will consider declining profit 2
Yes
Outgoings
Generic ICR: Basic rate tax @ 125%; Higher rate tax @ 145%; Additional rate tax @ 160%. Bespoke ICR: 125% to 160% – please refer to lender
Limited Company – 125%

No minimum income requirement.

Company Directors Where a company director owns more than 25% of the company shares they must be treated as self-employed and accounts obtained.

Sole source of income generated from a Private or Occupational pension will now be considered on BTL’s based on the following criteria: cases of satisfactory quality where customers have sufficient personal / occupational pension income will be considered. This will not include state pension income.

Rental income must be 110% of the monthly mortgage payments when calculated using a rate of 5.50%. Hire Purchase Taken into account
Personal Loans Taken into account
Overdraft Taken into account
Credit/Store Cards Taken into account
Child Maintenance Taken into account
Child Education Taken into account Extra Income:-
Other Income – Guaranteed Add 50% to income before multiply
Other Income – Regular Add 50% to income before multiply
Other Income – Irregular No
Investment Income No
Mortgage Subsidy Add 100% to income before multiply
Large Town Allowance Add 100% to income before multiply
Maintenance Payments Add 50% to income before multiply
Non Contributory Pension Add 100% to income before multiply
Car Allowance Add 100% to income before multiply

Remortgage

Capital Raising Max LTV
70% Max% increase
Home Improvements 70%
Debt Consolidation 70%
School Fees 70%
Holidays/Cars 70%
Buy Other Property 70%
Business Purposes 70%
Divorce Settlement 70%
Unencumbered 70%
Remortgage of an inherited BTL property can now be considered if remortgaging less than 6 months from inheritance.

Adverse Credit
CCJs/Defaults : Accept:
1) There must be no CCJs/Defaults in the last 72 months. This condition does not incur any rate loading. Arrears : Accept:
1) Max 2 missed payments in the last 36 months. This condition does not incur any rate loading. Bankruptcy/IVAs : Accept:

1) IVA must be discharged at least 6 years prior to application. This does not incur any rate loading.
2) Bankruptcy must be discharged at least 6 years prior to application. This does not incur any rate loading. Repossessions : Ignore Repossessions 72 months ago or over.
Defaults – 0 in 72 months
CCJs – 0 in 72 months
Arrears – 0 in 36 months
Bankruptcy, IVAs and Repossessions – 0 in 72 Months