Precise bridging to offer 30-year exit

After B&C exclusively broke the news last week that Precise Mortgages is launching a Bridge-to-Let product, starting at just 4.39 per cent, we can now reveal the full details of the product.

In what the lender calls a "true Bridge-to-Let product", customers are able to switch from a bridging rate of 0.85 per cent and extend the loan, after four months, into its exclusively priced buy-to-let product offering terms of up to 30 years.

Alan Cleary, Managing Director of Precise Mortgages, said: "This is what intermediaries have been asking us for and I hope we have exceeded their expectations with this product. This is great news for property investors as this will facilitate them in paying down the bridging element in double quick time, saving them potentially significant sums of money.”

All of its bridging customers have the option to transfer to a traditional BTL product after four months.

The BTL element of the product is on an interest-only basis and there are no valuation or legal fees when switching from bridging to the buy-to-let offering.

Precise Mortgages' customers will be allowed to take the BTL loan up to 75 per cent of the property's post works valuation so, if they have enhanced the value of the property, they will be able to withdraw some or all of their working capital or equity.

Standard bridging rates apply with the BTL element starting at just 4.39 per cent and the 2 per cent arrangement fee can be added to the loan.

Commenting on the launch, Rob Jupp, CEO of Brightstar Financial, said: "Once again Precise have led the market with an intelligent affordable product for our time. Many clients decide against short term lending as they fear the uncertainty of not achieving a long term exit. This now minimises the risk and provide clients with considerably more surety."

Chris Fairfax, Managing Director of Positive Lending, added: "All bridge-to-let products prior to this have been fundamentally flawed; attractive initial bridging proposition followed by relatively high interest term rate. This product is a genuine bridge-to-let and I expect high conversion from short to long to term as borrowers receive assurance without punitive costs."

As this is a brand new product to the UK mortgage market, all intermediaries who wish to use it should visit the lender's website to familiarise themselves with the application process.

Who is the product for?

- Property investors who are carrying out refurbishment works before letting a property
- A developer who wants to refurbish a property and use the profits to re-invest in a new project
- Bridge-to-Let products are only available to Precise Mortgages Bridging customers

Who is the product not for?

- First time landlords

How does it work?

- All Precise Mortgages bridging borrowers will have an option to transfer to one its selected BTL products, after four months instead of the standard 12 months

The Process:

- The maximum gross loan is £1 million to qualify for the Bridge-to-Let

There is a bespoke guide on Precise Mortgages’ website designed to help intermediaries with the process.