Applying for a mortgage with adverse credit is never straightforward. What you do expect, however, is a lender applying its own criteria correctly and being clear about how decisions are made.
In this case, my experience with Precise Mortgages fell short on both fronts.
Background to the Application
I submitted a mortgage application through a broker, who was fully involved throughout the process. A Decision in Principle (DIP) was obtained, and at that stage there were no obvious concerns raised.
Based on that, the application proceeded as expected.
The Outcome
The application wasn’t declined outright, but I was only offered potential terms at a reduced loan-to-value (LTV).
Crucially, this wasn’t clearly explained at the outset.
Given my ongoing issues with incorrect credit reporting from Lloyds Bank, I initially believed that was the cause. As a result, I spent time investigating and challenging what I thought was a data issue.
It later became clear that this wasn’t the reason.
The Real Issue: Debt Management Plan Interpretation
After further enquiries, I was informed that Precise Mortgages had assessed my application as if I were in an ongoing Debt Management Plan (DMP).
This isn’t an accurate reflection of my situation:
- I briefly used StepChange in the past
- I then moved to informal arrangements
- The accounts in question have since been resolved
There is no active DMP in place.
Misapplication of Precise Mortgages’ Own Criteria
Precise Mortgages’ published lending criteria clearly distinguishes between:
- Ongoing or current DMPs – typically subject to tighter restrictions, including reduced LTV
- Historic or discharged DMPs – generally treated more favourably
Despite this, my application appears to have been assessed under the ongoing/current category.
This suggests a misapplication of their own criteria, as the classification did not reflect my actual circumstances.
The Impact of Poor Transparency
One of the most significant issues in this process was the lack of clear communication from the outset.
Because the reasoning behind the decision wasn’t explained early on:
- I was left to make assumptions about the cause
- I spent time pursuing the wrong issue
- I initially attributed the problem to Lloyds Bank, when they were not responsible in this instance
This could have been avoided with a straightforward explanation at the beginning of the process.
The Role of the Decision in Principle
The Decision in Principle (DIP) gave no indication that this issue would arise.
As a result, it did not reflect how the application would ultimately be assessed under full underwriting. This raises questions about how reliable a DIP is where more nuanced factors, such as how historic debt solutions are interpreted, come into play.
The £99 Application Fee
As part of the process, I paid a £99 fee to proceed with the application.
Given how the application was ultimately assessed, and the lack of clarity around the key issue, this now feels like a cost that could have been avoided.
Had the criteria been applied correctly, or the situation clearly explained at the outset, I would have been able to make a more informed decision before committing to the application.
Key Takeaways
There are a few important lessons from this experience:
- Don’t rely solely on a Decision in Principle
It may not reflect how your application will be assessed in detail - Understand how lenders interpret your credit history
Classification matters as much as the underlying facts - Ask direct questions early
Clarity upfront can prevent wasted time and unnecessary cost - Check lender criteria carefully
And challenge decisions if they don’t align with your circumstances
Final Thoughts
Applying for a mortgage with adverse credit requires a fair and accurate assessment, supported by clear communication.
In this case, the combination of unclear reasoning and what appears to be a misapplication of criteria led to unnecessary confusion, time spent pursuing the wrong issue, and avoidable cost.
For anyone considering applying with Precise Mortgages, it’s worth ensuring that your credit history is not only accurate, but also being interpreted correctly before proceeding.
