Specialist lender Precise has upgraded its residential interest-only offering, aiming to give brokers more flexibility.

The lender has increased interest-only availability from up to 65% LTV to up to 75% LTV, and has removed the minimum equity requirement.

The latter applies where the repayment strategy is the sale of the property, a shift designed to open up interest-only lending to a wider range of borrowers.

The refreshed range offers both two‑year and five‑year fixed options, with eligibility mostly driven by LTV and the suitability of the repayment strategy.

By raising LTV limits and removing equity thresholds, Precise aims to support customers looking to upsize using the sale of their property as their repayment vehicle.

The widened criteria may also help those with imperfect credit profiles who need breathing space to rebuild their scores over time.

A clear and evidenced repayment strategy is still essential.

Accepted routes include:

·       sale of the mortgaged property

·       savings or investments

·       pension lump sums

·       sale of an additional property

All repayment plans will continue to be fully assessed for suitability during underwriting.

OSB Group group lending distribution director Adrian Moloney (pictured) said: “We’re really proud to introduce these affordability enhancements, following direct feedback from brokers and the recent launch of our 40‑year term. Today’s changes ensure more residential customers can benefit from appropriate affordability support where interest only is suitable.”