Precise Mortgages has confirmed that it has been granted approval by the Financial Services Authority (FSA) to start offering residential mortgages to UK borrowers. Precise already offers a range of Buy to Let mortgages, but will now be able to provide a range of deals to those seeking a mortgage on their own home. It becomes the first non-bank lender this year to gain FSA approval to start residential lending.
This welcome launch will bring new funding to the market and Precise joins a number of smaller lenders that are looking to offer something a bit different from the mainstream lenders. Lenders like Aldermore Bank, Kensington, Platform and GE have all launched new ranges this year.
Many of these are not brand new lenders but they would have previously been seen as specialist lenders, offering self certification, sub-prime and Buy to Let mortgages. With the demise of the sub-prime and self cert markets these lenders are now looking to offer standard, or prime, mortgages.
However there is an opportunity for ‘non-standard’ lenders to provide a more flexible and common sense approach to help borrowers that may fall just outside high street criteria. The emergence of this type of lender is to be welcomed with open arms and could provide an alternative to the ‘computer says no’ attitude sometimes employed in today’s mortgage market.