Precise has introduced a new 5-year fixed residential range that integrates valuation and assessment fees.
- The offering targets brokers assisting clients with limited disposable income or imperfect credit histories.
- Customers can opt to add the fixed product fee to the loan, reducing initial mortgage costs.
- The limited edition features rates starting at 5.49% with LTV options at 75% and 85%.
- This new offering addresses the financial pressure faced by borrowers amidst housing price surges and income growth discrepancies.
In a strategic move aimed at addressing the recent financial challenges faced by homebuyers, Precise, part of OSB Group, has rolled out a 5-year fixed limited edition residential range. This product integrates valuation and assessment fees, offering key advantages to brokers and their clients. Designed primarily for those with limited disposable income and less-than-perfect credit profiles, this range provides an avenue for financial respite.
An essential feature of this launch is the facility to append the £995 fixed product fee to the loan principle, allowing borrowers to circumvent the significant upfront costs typically associated with securing a mortgage. This adjustment is particularly beneficial for first-time buyers, for whom initial financial outlays can be a formidable barrier.
With rates commencing at 5.49%, the limited edition is available across 75% and 85% loan-to-value (LTV) brackets. Loan sizes qualifying for this range span from £75,000 to £300,000, ensuring that a broad spectrum of potential homeowners can be accommodated. Additionally, the automatic cascade feature facilitates speedier Decision in Principles (DIPs), significantly enhancing the overall application process.
In light of reports indicating a substantial 30% gap between house price inflation and income growth, coupled with the prevailing cost-of-living challenges, this new product line is timely. Adrian Moloney, group intermediary director at OSB Group, emphasised that the costs associated with purchasing a home are considerable, and this product aims to mitigate the financial burdens on buyers. According to Moloney, the security of a fixed monthly payment, available through this 5-year option, aids in long-term budgeting for homebuyers.
Precise’s innovative residential range provides essential financial support for borrowers navigating challenging economic conditions.
