Precise Mortgages is targeting landed purchasing of more expensive properties after doubling its maximum buy to let loan size
The lender, who previously offered loans of up to £1 million, has doubled the figure to a massive £2 million.
Motivation behind the change is likely to be a desire to gain access to a greater portion of the lucrative buy to let and property investment market.
Meeting minimum requirements
Under their new thresholds, Precise Mortgages ask borrowers looking to secure a loan of more than £1 million to meet minimum salary requirements of at least £100,000.
Investors also need to secure rental coverage of 125 per cent of the pay rate or revert rate – whichever is higher.
These rates are the same with Precise Mortgages’ lifetime tracker products which also boast a 3.69 per cent interest rate and a 2.5 per cent product fee for 60 per cent loan to value ratio.
Precise Mortgages’ Managing Director Alan Cleary said their decision to increase buy to let loan sizes was good news for investors.
He said it provides mortgage intermediaries with another option as buy to let loans worth more than £1 million are no longer “the preserve of private banks”.
“Our lifetime trackers are very popular with high net worth landlords that gave lower yielding properties in London Zones one and two where typical rental yields are 2.5 to 4.0 per cent,” he said.
By increasing the borrowing levels for investors and buy to let landlords, Precise Mortgages hopes to be able to target more of the overall lending market.