Precise has increased borrowing potential and is now able to lend up to 6x loan-to-income (LTI) for eligible residential customers.
This criteria change follows Rachel Reeves’ Mansion House speech on 15th July, in which she announced the cutting of financial red tape in a bid to boost homeownership in the UK with a pledge to support 36,000 first-time buyers over the next 12 months.
Precise does not impose restrictions according to professions, so brokers can be assured that as long as a customer meets the internal credit score and affordability assessments, then the application will be considered.
Precise’s residential range boasts income multiples up to 6x at 95% loan-to-value (LTV), and is fully inclusive of all borrower types including employed, self-employed, adverse, joint, first-time buyers and movers.
Rates on this range are available from 4.77%
Adrian Moloney (pictured), intermediary sales director at OSB Group, said: “Precise has consistently supported the specialist residential market and this latest increase to LTI multiples follows a number of positive changes that have been made this year.
“These changes include increased affordability calculations (average of 9%), reduced stress rates to 1.25% as well as LTV now up to 95% which means we’re able to support even more customers with affordability challenges.
“To illustrate what this means in real terms, if a couple’s joint income was £80,000 at the start of the year, they had the potential to borrow up to £400,000 at 85% LTV (subject to eligibility) but from today that same couple could access up to £480,000 at 95% LTV, giving them an uplift of over 20% with smaller deposit requirements.”
