Specialist lender Precise Mortgages has launched its lowest-ever bridging rates of 0.54% per month.
Aimed at standard and light refurbishment deals up to 50% LTV, Precise's newest mortgage product is exclusively available through its Premier Panel members. What's more, Precise has slashed rates on deals up to 60% LTV, down from 0.74% per month to 0.64% per month.
“We had our best ever year on bridging in 2016 and we intend to keep the momentum going,” said Alan Cleary, Managing Director of Precise Mortgages. “These are great rates and we expect them to be popular.”
In addition to its reduction in rates, Precise has also put its Buy to Let calculator online in order to help brokers see how much their clients can borrow.
Some brokers have been left confused by the recent introduction of new Prudential Regulation Authority (PRA) rules on buy-to-let affordability, with many lenders publishing new criteria. A “bucket” approach has been taken by many lenders, which has meant Increased Coverage Ratios (ICRs) rising to 145%. The result of this is that many landlords are no longer able to borrow as much money as was the case before the new rules came into play.
“Our Buy to Let calculator allows mortgage intermediaries to know how much their clients could borrow from us before they start the application process,” Alan Cleary continued. “They will also be able to compare and contrast different ways of setting cases up in order to achieve the best outcome.
He added: “The calculator is similar to the one used by our underwriters to assess cases so it will save intermediaries and us time and effort. We believe that in the majority of cases a bespoke ICR will be superior.”