MortgagesMar 30 2016

Investec merges mortgage proposition for HNWs

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Investec merges mortgage proposition for HNWs

Investec Private Banking is consolidating its Professional and £Million Plus+ mortgages into the new Investec Private Banking Mortgage, launched with a range of three and five-year fixed rates.

The firm’s business development manager Peter Izard said the move is to target borrowers with a minimum income of £300,000 with a net worth of approximately £3m.

“Applicants do not need to have assets held under management with Investec Private Banking and all loan applications are individually assessed by a dedicated private banker,” he said.

The new product has the following features:

Minimum income: £300,000 which can include salary, bonus, vested stock and carried interest.
Assets under management: Borrowers do not need to have assets held under management with Investec Bank to apply.
Loans size: From £250,000 up to £10m (maximum £5m for fixed rates), to a maximum of 85 per cent loan-to-value (higher on request).

Rate options include the lifetime tracker of Investec Bank Base Rate (currently 0.5 per cent) plus 2 per cent to 60 per cent LTV; or IBBR plus 2.5 per cent to 75 per cent LTV; or IBBR plus 3 per cent to 85 per cent LTV.

For the three-year fixed rates, the firm is offering 2.59 per cent to 60 per cent LTV; 2.89 per cent to 75 per cent LTV; and 3.29 per cent to 85 per cent LTV.

Finally, the five-year fixes are at 2.99 per cent to 60 per cent LTV; 3.29 per cent to 75 per cent LTV; and 3.59 per cent to 85 per cent LTV.

Overpayments of up to 10 per cent per annum are also permitted on all fixed rates, while early repayment charge may apply if loan is paid in full.

Interest only options are available for up to five years, reverting to capital and interest thereafter.

Arrangement fees are set at 1 per cent, while brokers can earn a procuration fee of up to 0.5 per cent and there is no longer a fee cap on proc fees paid to brokers.

Oliver Marley, research assistant at broker Independent James, said it was nice to see Investec providing a full procuration fee on cases, “as this means we will no longer have to penalise the client by charging an increased adviser fee”.

He commented that there is a strong appetite for high-net-worth clients, with Investec taking on the “quirkier cases and unusual circumstances”, as they often do not attract the more aggressive regulatory restrictions.

“Investec have always taken a tailored approach to each application and can continue to focus on this in an environment clouded with new regulatory changes every couple of years.”

peter.walker@ft.com