Investec eases mortgage lending rules potentially offering high-net-worth clients up to 30% more
Investec Bank plc has announced that wealthy clients planning to get a mortgage to buy a home or remortgage should now be able to access more generous loan sizes.
The private bank has changed its lending rules in response to the Financial Conduct Authority’s (FCA) updated guidance and reduced its residential stress rates by up to 2.10%.
The change means that high-net-worth clients applying for a mortgage through Investec may now be able to borrow between 10% and 30% more than they could previously. The amount they can borrow depends on their individual circumstances and is subject to affordability checks and loan-to-income limits.
Aaron Strutt, product director at Trinity Financial, says: "Since the FCA's latest mortgage guidance, there has been a lot of change from the mortgage lenders. These new lending rules could increase first-time buyer transactions by up to 24% over the next five years, according to the latest analysis from property firm Savills."
Examples of how Investec's changes impact borrowers:
Example 1:
£300,000 Income, no dependents, no debt, £66,000 yearly expenditure with a 25 year term and a full capital & interest and 80% loan-to-value.
| Potential New Borrowing | Previous Borrowing |
|---|---|
| 2 Year Fixed £1,096,000 | 2 Year Fixed £949,000 |
| 2 Year Tracker £1,075,000 | 2 Year Tracker £949,000 |
Example 2:
£550,000 Income, two dependents, £5,000 monthly debt, £128,000 yearly expenditure with a 25 25-year term, 70% interest only and 15% capital & interest.
| Potential New Borrowing | Previous Borrowing |
|---|---|
| 2 Year Fixed £1,358,000 | 2 Year Fixed £1,102,000 |
| 2 Year Tracker £1,347,000 | 2 Year Tracker £1,102,000 |
What does Investec offer to mortgage customers?
Investec offers a comprehensive range of residential mortgages designed to meet the unique needs of clients. Investec issues mortgage loans of up to £10 million with flexible terms, including fixed and variable rates for product terms ranging from 2 to 5 years.
Repayment options include capital and interest, interest-only, and part and part, with terms extending up to 35 years. Investec considers clients' full financial profiles—not just salaries—allowing for up to 95% loan-to-value in some cases.
For those looking to remortgage, Investec has tailored solutions for both buy-to-let and residential properties, and clients do not need to have an investment portfolio with the bank to apply.
Call Trinity Financial on 020 7016 0790 to secure a mortgage or book a consultation
The information contained within was correct at the time of publication but is subject to change.
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