Precise Mortgages makes American money available to UK buy-to-lets

The UK buy-to-let market must have signs of life, strong enough to be perceived even from overseas, because – hot on the heels of the Aldermore news – a new lender has entered the market this week.

Precise Mortgages is the trade name of a new mortgage venture backed by American private equity. The backers are NY-based investment firm Elliott Associates, recently linked with a bid for IT technology company Novell.

Starting this month (May 2010), they'll be offering three different buy-to-let mortgages, starting from a rate of 5.79 per cent at 75% loan to value. That rate is devised by adding 5.15 to LIBOR over a two-year tracker deal.

A downside for larger value loans is the 2.5 per cent arrangement fee, which needs to be paid straight up – rather than added to the loan – which will eat into the deposit a little. And this new venture won't appeal to professional landlords yet, as there is a limit of one property per investor. New-build properties are also disallowed.

Precise Mortgages has not unveiled any owner-occupier mortgages, but if you're a buy-to-let property investor this will add to your options. You'll have to arrange a quote through one of their panel of intermediaries, which includes L&G Mortgage Club, Mortgage Intelligence and Mortgage Next.