Investec Bank has announced that high net-worth (HNW) clients looking to purchase or remortgage a home will now be able to borrow more.
In response to the FCA’s updated guidance on stress rates, Investec has reduced its residential stress rates by up to 2.10%. As a result of the changes, HNW clients applying for a mortgage from Investec may now be able to borrow between 10% and 30% more, depending on their individual circumstances and subject to affordability checks and loan to income limits.
For example, a borrower with £300,000 income, no dependents, no debt and £66,000 yearly expenditure with a 25-year term at 80% LTV could now borrow up to £1,096,000 on a two-year fixed rate, up from a previous limit of £949,000.
Investec recently announced reductions of up to 58bps to its high net-worth mortgage tracker rates as well reductions in fixed rates of up to 30bps across its residential mortgage range. Additionally, Investec has lowered its residential mortgage fees from 1.00% to 0.50% and capped arrangement fees for owner-occupiers.
Peter Izard (pictured), head of intermediary business development at Investec Bank, commented: “These changes will enable our clients to secure the property they want by increasing their borrowing capacity. We have already reduced rates in both fixed and variable rate products and halved our residential mortgage arrangement fees, making us even more competitive in the market. In response to the recent FCA guidance, we have now reduced our stress rates, allowing high net-worth clients to access higher loan amounts. This ensures that Investec continues to serve our clients with the service and flexibility they need to fulfil their lending aspirations.”
