Investec Private Bank has introduced a range of fixed rate mortgages and a new minimum qualification income.
The lender provides mortgages which are not widely available across the market, but clients will need to earn a £300,000 to qualify for them.
The majority of Investec’s lending is to high net worth individuals buying either residential or buy-to-let properties in London and the south-east.
The bank provides interest-only mortgages with bullet repayments written into the contract. It is also one of the few lenders happy to lend up to 85% loan-to-value for mortgages up to £5 million - typically over a five-year period.
· Mortgages between £1 million and £10 million.
· No assets under management.
· Foreign currency mortgages still available.
· 100% cash bonuses considered for affordability purposes.
· Lends to Australian and American clients.
Investec is looking to concentrate on its private banking brand and target wealthier borrowers. It still lends to clients if they receive their income in a foreign currency.
Aaron Strutt, product manager at Trinity Financial, says: “If borrowers are taking higher loan-to-value mortgages, the bank will expect the loan amount to be reduced quite quickly. That is why it prefers lending to bankers and traders who receive a large salary and regular bonuses.
“If a couple apply for a mortgage, one applicant will probably need to meet the £300,000 minimum requirement.”
Investec has introduced a range of three and five-year fixed rate mortgages and it also has a lifetime tracker rate.
The most competitively priced mortgages are available to clients if they have a 40% deposit. Rates are more expensive if you have a 25% deposit or 15% deposit and there is usually a 1% arrangement fee.
To secure a private bank mortgage call Trinity on 020 7016 0790.