Buy-to-let lender Precise Mortgages will start lending to homeowners, in a move which could bring hundreds of millions of pounds of new credit to the mortgage market.
The group, which is backed by US private equity firm Elliott Associates, is the first non-bank lender this year to gain approval to start residential lending by the FSA.
From 15 November, the lender will start offering mortgage products to owner-occupiers, with a focus on borrowers who do not meet the requirements of the high street banks.
Alan Cleary, Precise Mortgages managing director, says: “There are a lot of creditworthy borrowers that the big five banks are not lending to. We hope that we can help fill that hole by increasing the supply of lending in the market.”
He added that Precise would be lending to “first-time buyers, the self-employed and borrowers with a credit-impaired history”.
According to recent BBA figures, the number of mortgages approved by the six largest high street lenders was 26% lower in September than the year before.
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