Before the infamous “mini-budget” delivered by the then Chancellor, Mr Kwasi Kwarteng, on 23 September 2022, there were two distinct options to for Precise mortgage rate switch: remortgage to another lender; or apply for a Precise Product Transfer. The budget sent interest rates to highs not seen for a decade and effectively shut the door on remortgages for applicants whose rent to mortgage payment ratio, otherwise known as a rental stress-test, simply did not fit the new Mortgage Lenders’ rules. Whilst rates have eased slightly in recent weeks, as the markets have settled, there are many Landlords with buy to let mortgages, including those with Precise Mortgages, that still cannot make the numbers work to remortgage, and until the rents are adjusted upwards remain effectively “mortgage prisoners”. So the only alternative to going onto a high standard variable rate with Precise is to rate switch using a product transfer.
In this frequently asked question article we cover the main points of a Precise Mortgage rate switch, otherwise known as a Precise Product Transfer.
If you are an existing client and are looking for a Precise Mortgage Rate Switch Product Transfer please do get in touch.
Published 16 November 2022 · Last reviewed 17 November 2022 · Older article — see current rates
Free Precise Mortgage Rate Switch Product Transfer Service
Frequently asked questions on Precise Mortgage Rate Switches
A) None, they are two different names for the same process.
A) Product transfers are available exclusively through intermediaries
A) A remortgage involves moving your current Precise mortgage to another Mortgage Lender. A rate switch means you are staying with Precise but switching the Mortgage Product that you are on.
A) There is no charge.
A) No, the legal work carried out at the inception of the original Precise Mortgage is carried over so there is no legal work required.
A) No. The conduct of your current mortgage though is likely to be a factor so I suggest it is paid up-to-date.
A) The standard position is “no”. However, every Mortgage Lender reserves the right to do so. Also if you are up-happy with the index value their computer puts on your property you can ask for a Surveyor to go out.
A) No, the beauty of a Precise Mortgage rate switch is that the rental coverage will not be re-checked. However, they will however expect the property to be let and not vacant.
A) It can do, I suggest you talk this through with your professional Mortgage Adviser.
A) As a general statement remortgages are generally cheaper as you have the whole market to go at. Every time you are coming to end of a current mortgage product period you should look at the options with your professional Mortgage Broker.
A) You should check your mortgage contract with Precise, nearly always there are early repayment charges during the mortgage product period, and the day after they expire is probably the best time to make a large payment. Then after that’s gone through exercise your new Precise Mortgage Product Transfer.
A) Precise Mortgages will require you to call T: 0333 240 6180 and give your details of the Mortgage Broker you wish to act for you before the product transfer process can begin.
A) Yes, absolutely. Although the call for Precise Mortgage product transfers mainly exists for buy-to-lets we can help facilitate residential rate switches too.
A) You will need to check your mortgage contract but it’s likely this is breaking the rules unless this was agreed with Precise Mortgages prior to the conversation. Precise operates a separate premium product range for HMOs.
A) 3 months before the end of the current mortgage product
A) A full calendar month needs to pass after the signed Offer is returned before the new rate can start. Example: Signed offer comes back on the 25th November, December being the full calendar month that passes so the new rate goes live 1st Jan.
A) It applies at the end of the current rate.
A) Yes – dependant on how the original mortgage was securitised (sold on) then there is a chance they would not be offered a Product Transfer. There is no special prefix to these accounts so you would not know until you applied. If this is the case Precise does allow the customer to “remortgage” back to them but they would have to pay the legal and valuation fees all over again i.e. you will be treated as a new customer.
A) No, you would need to a separate conversation with Precise Mortgages ahead of the product transfer. The switch would trigger a new affordability assessment.
A) No, you would need to a separate conversation with Precise Mortgages ahead of the product transfer.
A) Precise does not offer Further Advances so this would need to be a “remortgage” back to them. This can only be applied for at the end of the product term as Precise does not allow a customer to incur early repayment charges to then borrow more.
A) The time to overpay your mortgage would be when there are no early repayment charges. This is typically between rates but you will need to check your mortgage contract.
A) No, you would need to be a resident in the UK to adhere to your mortgage contract.
A) No.
A) Yes once existing rate has matured.
A) Yes, 5 years remaining.
A) There is no minimum loan amount.
A) No, Precise has set Mortgage rates and expects a good payment record.