Investec Private Banking is introducing new loan-to-value (LTV) bands on its buy-to-let mortgages with rates up to 1 per cent less than its current offering.
Investec Private Bank provides both buy-to-let and residential mortgages designed specifically for borrowers requiring between £250,000 and £10m, who have a minimum annual income of £300,000 and net assets of £3m or more.
With an LTV of up to 50 per cent, the new buy-to-let rate is now 2.5 per cent and three month Libor, while up to 70 per cent LTV the new rate is 3.1 per cent and three month Libor.
Rental calculation is 100 per cent of pay rate plus 3 per cent, buy-to-let mortgages can be made to special purpose vehicles (SPVs), with a personal guarantee, and excess income can be taken into consideration against any rental shortfall.
A total of 100 per cent of cash bonuses are considered, averaged over three years, and buy-to-let mortgages are available for borrowers paid in a foreign currency.
There is a 1 per cent arrangement fee, with 0.5 per cent procuration fee payable to the broker.
Peter Izard, business development manager at Investec Private Banking, said: “Despite recent tax changes, the buy-to-let market remains an attractive proposition for investors.
“We’re delighted to be announcing these significant rate cuts, which will be a real boost for landlords seeking larger loans.”
Paul Howard, proprietor of Box Financial Planning, said: “Investec have never seemed competitive before and I’ve not used them.
“For a buy-to-let rate this seems a little high.”