Mortgages  

Investec cuts BTL mortgage rates

Investec cuts BTL mortgage rates

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 for borrowers requiring between £250,000 and £10m, who have a minimum annual income of £300,000 and net assets of £3m or more.

There are two new buy-to-let products: one with an LTV of up to 50 per cent, at 2.5 per cent and three-month Libor, and one up to 70 per cent LTV at 3.1 per cent and three-month Libor.

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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 has never seemed competitive before and I’ve not used them.

“For a buy-to-let rate this seems a little high.”