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

No impact on credit score

Pete Mugleston

Author: Pete Mugleston - Mortgage Advisor, MD

Updated: September 20, 2021

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 this guide, you’ll learn how you can boost your chances of salvaging your mortgage application and finding the right lender.

Are Precise a strict mortgage lender?

Precise Mortgages are a specialist provider which means they can be more flexible with their lending criteria than high street banks and building societies. They can, however, be strict on customers with severe forms of adverse credit, such as debt management plans, defaults registered less than two years ago or repossessions within the last six years.

Precise can also have stringent age requirements for a mortgage and will order extra underwriter scrutiny on any applicants who are over 75 at the time of application.

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.

  1. 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.

  1. 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.

  1. 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.

  1. 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.

  1. Other reasons

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.

How we can help you overcome these problems

If you think Precise are likely to decline you for a mortgage because of any of the above issues, keep in mind that it could still be possible to get approved for the finance you need with the help of the right mortgage broker.

There are brokers in our network who occasionally have access to exclusive deals with Precise, but if you don’t meet their criteria, they could help you find an alternative mortgage provider with a more flexible lending criteria. For example, there are lenders who…

  • Have a higher appetite for risk than most lenders
  • Offer mortgages to people who have just started a new job
  • Can be more flexible with severe bad credit
  • Specialise in non-standard properties
  • Have no upper age limit on their mortgages

What to do if Precise have declined you for a mortgage

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.

  1. 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.

  1. 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.

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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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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.

About the author

Pete, an expert in all things mortgages, cut his teeth right in the middle of the credit crunch. With plenty of people needing help and few mortgage providers lending, Pete found great success in going the extra mile to find mortgages for people whom many others considered lost causes. The experience he gained, coupled with his love of helping people reach their goals, led him to establish Online Mortgage Advisor, with one clear vision – to help as many customers as possible get the right advice, regardless of need or background.

Pete’s presence in the industry as the ‘go-to’ for specialist finance continues to grow, and he is regularly cited in and writes for both local and national press, as well as trade publications, with a regular column in Mortgage Introducer and being the exclusive mortgage expert for LOVEMoney. Pete also writes for OMA of course!

Read more about Pete

Pete Mugleston

Mortgage Advisor, MD

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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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