Targeting individuals such as the self-employed or those with blemishes on their credit records, it will use data-driven models based on affordability.
The first tranche of buy-to-let loans is being distributed through independent financial advisers and is supported by a new case management system. Precise will use information from credit reference agencies and public domain information about county court judgements to set its lending criteria.
Managing director Alan Cleary believes the company is entering the market just as private landlords are about to become more important, but are finding it hard to get loans. “It doesn’t take a genius to work out that private landlords are likely to become more important as responsibility is removed from the state,” he said in response to reforms to the social housing sector announced in the Government’s Spending Review.
As well as claiming to bring new funds to market, Precise says it will be unlocking demand, especially from the self-employed. “I have seen evidence of lenders retreating from the self employed market completely,” said Cleary.