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 was to target borrowers with a minimum income of £300,000.
He added: “We also look to see the borrower has assets under management – investments or property – over an approximate value of £3m, although they do not have to be held with Investec.
“All loan applications are individually assessed by a dedicated private banker,” he added.
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 (IBBR) – (currently 0.5 per cent) plus 2 per cent to 60 per cent loan to value (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 a year are also permitted on all fixed rates, while an 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 them.
Adviser view
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 added that there was 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.
He said: “Investec has 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
