15:10 PM, 6th December 2022, About 2 months ago 3
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?