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What To Do If You’ve Had a Mortgage Application Declined by Precise Mortgages

Updated: May 26, 2021

Pete Mugleston
Author: Pete Mugleston Mortgage Advisor, MD

As a specialist mortgage provider, Precise Mortgages have a more flexible lending criteria than many high street banks and building societies, but there isn’t a lender on the market who can claim to cater for everyone. Precise will still decline customers who fall outside of their criteria, but being rejected by a specialist lender isn’t the end of the world.

If you’ve been turned away by Precise Mortgages, keep your chin up. They aren’t the only specialist lender in the UK, and with the help of the right mortgage broker, there’s no reason why you can’t find another who’s willing to offer you a second chance at mortgage approval.

Help is available! The brokers we work with could help you turn that rejection into a mortgage promise

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Common reasons why Precise reject mortgage applications

1. They think you’re paying more than what the property is worth

Some people find that Precise will offer them a mortgage in principle, only to change their mind about lending to them when the property valuation has taken place. This is usually because the surveys suggest you’re overpaying for the property, so the lender will be concerned about being left out of pocket in the event of having to repossess your home and sell it on.

Being declined by Precise Mortgages after the valuation phase might feel like a major setback to your plans, but we can assure you that you aren’t back at square one. A specialist mortgage broker with the right expertise could help you revive those mortgage ambitions.

They can tell you whether there’s grounds to appeal against Precise’s decision, and failing that, they might be able to find you an alternative lender with a higher appetite for risk.

2. You’re still in your probationary period at work

Although Precise can be flexible with some of its lending criteria, it has strict rules around employment and won’t lend to anyone who is in a probationary period at work. So, if you’ve applied with them having just started a new job, there’s a good chance you’ll be declined.

Being told you have to wait at least several months before you apply for a mortgage can be majorly frustrating, but here’s the good news: that’s not necessarily true. While Precise might not lend to you so soon into a new job, a specialist broker can help you find a lender who’s more than happy to offer mortgages for people in a probationary period.

If it turns out that waiting a few months so you meet Precise’s criteria is in your best interest, your broker will be fully transparent on that and offer you a breakdown of how much you stand to save from delaying your plans, compared to finding a new lender.

3. Precise’s underwriters found “severe” bad credit

As a specialist lender, Precise offer a range of bad credit mortgages for otherwise eligible customers with all kinds of issues on their file, from arrears to discharged bankruptcies. But there are specific credit problems that will trigger an automatic rejection from Precise.

Some customers make it past the decision in principle stage, only for Precise Mortgages to turn them down after the underwriting process. This is often because a type of bad credit the lender classes as “severe” was found when the underwriters did a hard credit check.

Precise won’t lend to customers with current debt management plans, defaults registered less than two years ago or repossessions within the last six years. But if you’ve been declined because of one of these issues, or think you’re going to be, don’t think for a second that you’re out of options. There are brokers in our network who specialise in bad credit mortgages, and they could find you a specialist lender with an even higher appetite for risk.

 4. An issue with the property itself

Coming in undervalue isn’t the only deal-breaking issue that may arise during the property survey. Precise won’t lend if certain ‘non-standard’ construction types are found, such as concrete and 100% timber, and will also pull the plug if Japanese Knotweed is discovered on the premises or there are overhead power lines, to name a couple of examples.

The lender might have told you that your property is unmortgageable, and that was no doubt disappointing to hear, but bear in mind that Precise don’t speak for every lender on the market. We work with brokers who specialise in getting mortgages for customers buying non-standard construction homes and properties with issues many lenders won’t touch.

With the help of the right mortgage broker, it may be possible to get a mortgage on a non-standard property with even better rates than the product you applied for with Precise.

5. Precise considers you too old for a mortgage

Retirement mortgages are not Precise’s specialty, so if you’re applying for one with them, you’re right to consider the possibility that you might be rejected. Expect to come under intense underwriter scrutiny if you’re 75 or over at the time of your application.

Provided you can evidence enough retirement income to cover the mortgage payments, there’s still a chance that you could get a mortgage, but it’s always worth checking whether there’s a better deal out there with a lender who specialises in retired customers.

There are brokers in our network whose bread and butter is retirement lending, and they have deep relationships with lenders that have no upper age restrictions. Speaking to the right broker before you continue can give you peace of mind about the deal you’re getting.

Did Precise Mortgages reject your application because of something else?

If so, don’t worry. It doesn’t matter that the exact issue you encountered isn’t listed above – the mortgage brokers we work with have helped customers who have been declined by specialist lenders for every reason you can think of, and they don’t discriminate.

Whatever the problem you encountered with Precise, we can match you with a broker whose specialty is solving it. This could boost your chances of mortgage success regardless of your background and the circumstances surrounding your original application.

Important

If you’ve been offered a mortgage in principle by Precise Mortgages but are worried that your application might be rejected before completion, it’s not too late to take a pause for expert advice. The brokers we work with can tell you whether it’s best to stick with Precise or consider an even better deal that’s on offer with another lender.

What you should do next

If you’ve been turned down for a mortgage by Precise or think they’re about to reject you, here’s what you can do to help keep your chances of mortgage approval alive…

1. Don’t re-apply just yet

While it may be tempting to rush out to another lender straight away, hang fire for now. Unless you know the market inside out, there’s no guarantee things will turn out any differently than they did with Precise Mortgages. Another rejection could be a big setback as too many finance requests in a short period of time can negatively affect your credit report.

2. Gather all of the facts around your rejection

Find out exactly why Precise Mortgages wouldn’t lend to you so you can take steps to rectify the issue, or at least apply with a lender who will overlook it next time. Try to get your hands on copies of any reports or surveys that were carried out, and so you can make sure they’re fully up to date and see any problems first hand.

If you’re too short on time to carry out a fact-find or can’t get your hands on the documents, no problem. Simple jump ahead to step three below.

3. Get professional advice from a mortgage broker

The best way to bounce back from a mortgage rejection is to speak to a mortgage broker and find out what all of your options are. They can tell you whether appealing against Precise’s decision is in your best interest, but there’s also a chance that they could find you an even better deal with a different mortgage provider.

We offer a free broker-matching service that can pair you with the right advisor for your needs and circumstances. This will be a fully-vetted expert who specialises in solving whatever issue prevented you from getting a mortgage from Precise.

Help is available! The brokers we work with could help you turn that rejection into a mortgage promise

  • Check mark Whole of market mortgage experts
  • Check mark FCA regulated
  • Check mark Rated 5 stars on Feefo
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FAQs

Do Precise Mortgages refund valuation fees after a rejection?

Valuation fees are non-refundable after the valuation has been completed. If you paid them upfront and your application broke down before this point, speak to a broker to find out whether there are grounds to appeal for a refund.

Do Precise offer self-employed mortgages?

Yes. Precise offer a range of mortgages for the self-employed. You need to have been self-employed for at least a year to qualify for them, while other criteria varies.

Precise apply some caveats to their self-employed mortgage products. For example, you will be declined if you made a loss in the last year or if you want to borrow based only on the latest year’s income. If you’ve been turned down for either of these reasons (or any other) keep in mind that a broker who specialises in self-employed mortgages might be able to find lending options for you elsewhere.

What is Precise Mortgages’ refurbishment buy to let product?

This a product aimed at buy-to-let borrowers who need funds to renovate the property they’re purchasing before they rent it out. It’s a combination of a bridging loan and a buy-to-let mortgage, with the bridge loan providing funds for the refurbishment and the buy-to-let agreement serving as an exit strategy for the initial debt.

If you’re a landlord who needs extra funds to renovate a property you’re hoping to buy as an investment, Precise’s refurbishment buy-to-let mortgage isn’t your only option. Many lenders offer ‘bridge-to-let’ mortgages, so it’s worth speaking to a broker who specialises in this market to find out which one is offering the best deal for you.

We’re a great match for you if you’ve been declined by Precise. Here’s why…

If Precise have turned you down for a mortgage or you think that they’re going to, first of all, don’t panic. Help is at hand in the form of professional advice from a mortgage broker. The right mortgage advisor will have the skills and expertise to help you salvage your home-buying plans, regardless of the reason Precise wouldn’t lend to you originally.

We offer a free broker-matching service that will assess your needs and the circumstances surrounding your mortgage rejection and pair you up with the advisor who’s best positioned to turn that rejection into an approval. This will be a fully-vetted expert who helps people that have been declined for a mortgage by a specialist lender every day.

Call 0808 189 2301 or make an enquiry online and we’ll set up a free, no-obligation chat between you and your ideal broker. Learn whether there’s grounds to appeal with Precise or find another mortgage lender offering an even better deal today!

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FCA disclaimer

*Based on our research, the content contained in this article is accurate as of the most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms who are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs.

Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.

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