You need to be Precise with Precise Mortgages?

You need to be Precise with Precise Mortgages?

15:10 PM, 6th December 2022, About A year ago 3

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I wanted to share a recent experience I’ve had with Precise Mortgages, which other borrowers/prospective borrowers/IFAs may find of interest.

5 years ago I bought a BTL property with a 75% loan from Precise Mortgages, fixed for 5 years at 3.39%, through our SPV limited company. The product was coming to the end of its term at the end of October so in September my IFA suggested doing a product transfer with Precise to another 5-year fix at 3.74% with no fee.

Expecting rates would be going up, we jumped at this and were told we met eligibility requirements so got the application straight in. A few days later my IFA received a call saying that we were turned down as since the original application we’d appointed a new director. This wasn’t just any director, it was my wife, who we appointed to ease any possible administration issues should I die before her. Precise argued that applications for product transfers needed to be “like for like” and there had been a “change in circumstances”. My options were to apply as if I were a new borrower, or revert to LIBOR plus 4.71% (currently 7.40%).

I had no option to put a formal complaint in that argued it was normal activity for a business to appoint/resign directors and that we could simply remove my wife as a director so that nothing had changed overall. My complaint was turned down 16 days later.

Given there was a simple remedy for the change (my wife resigning), I can’t help but feel that Precise were looking for a way out of honouring what is now clearly a fantastic rate of 3.74%. If I were to apply for a product transfer now (albeit I’d be turned down) I’d be looking at 5.99% – which would cost me cumulatively £26k extra over the next 5 years.

I appreciate it’s all bad timing as we hit massive changes in bank base rate, but I feel very harshly treated.

I wonder if anyone else has had a similar experience?


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Pat Simpson

11:10 AM, 7th December 2022, About A year ago

Hello Neil, I have had a similar experience as you. I rang up about a product transfer was told that they did them. I was put through to the relevant department and was told there was none available to me. The only recourse was to apply again.
I tried this 3 times and got the same answer. So, I have obtained a remortgage with another lender.
Precise are a tin pot outfit!


12:11 PM, 7th December 2022, About A year ago

Recently remortgaged with Precise. They would not countenance a product transfer even though there were no such changes so a full remortgage was the only option. In fact they told my broker they don't do product transfers

Mervin SX

14:56 PM, 10th December 2022, About A year ago


By appointing your wife as a director, it would have changed the fundamentals of the underwriting for your mortgage - all limited company mortgage providers state it clearly that if there were to be changes in your company's directors or shareholders, then a full underwriting is required.

So, in your case, Precise were correct in turning down your application (albeit at the wrong time as the markets turned against you).

Having said that, I have had some poor experience with Precise previously and I have evidence of some unprofessional manner of working! For this reason, I have re-mortgaged away from Precise and I will never be using them again nor recommending them to anyone.

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