Adapting criteria and innovating products is vital as borrower challenges and credit profiles evolve
This article was produced in partnership with Precise
The current mortgage landscape is far from straightforward. With affordability stretched, interest rates still high by recent standards, and cost-of-living pressures continuing to bite, many borrowers are finding themselves caught in a tightening net.
Those with less-than-perfect credit histories face an even greater challenge. Increased scrutiny around affordability means that even minor blips – a missed payment, a temporary income drop, a forgotten bill – can carry more weight than ever. For some borrowers, these issues are in the past. For others, they're still being managed through arrangements such as debt management plans. Either way, they remain a barrier in a market that often favours a spotless credit record over the full story.
In this environment, lenders must be willing to look beyond the surface. Rigid criteria and automated declines don't reflect the reality of modern borrowing, and the industry needs to be more responsive when it comes to assessing risk.
Clear-cut criteria
At Precise, we understand that financial journeys aren't always linear. That’s why our residential range is designed to make the complex, simple.
Our clear-cut criteria recognises the realities that brokers and their customers are facing:
- Up to 5 defaults and 3 CCJs allowed in the last 24 months
- Mortgage and secured loan arrears accepted (1 in 12 months, 3 in 36 months)
- Support for borrowers with active or recently satisfied debt management plans
- Willingness to lend to first-time buyers with adverse credit
- CCJs or defaults over 24 months old and unsecured arrears not counted
Our residential product range also aims to address affordability challenges head-on. With lending up to 95% LTV, debt consolidation up to 90% LTV, and loan sizes up to £5 million, we’re giving brokers more options to help customers restructure and recover.
A stress rate of just 1.25% on 2- and 3-year fixed terms also provides extra breathing room for affordability calculations, while different fee options – including £0 with cashback and refund of valuation – make the upfront cost of borrowing more manageable.
Get a quick yes or no
We also know that navigating complex cases can be time-consuming. Our automatic cascade system is designed to simplify that process, instantly matching borrowers to the most suitable product based on their circumstances. No second-guessing. No unnecessary declines.
We see the potential
As the market continues to shift, lenders have a choice: hold on to rigid definitions of risk, or meet borrowers where they are. At Precise, we choose the latter.
We believe in looking beyond credit scores to support real people in real circumstances. And we believe that, with the right products and the right mindset, we can help more brokers say yes to more customers – even in challenging times.
Intermediaries only.
