Investec Bank plc has reduced its residential stress rates by up to 2.10% following updated FCA guidance, enabling high-net-worth (HNW) clients to borrow significantly more when purchasing or remortgaging a home.
According to Investec, the move could increase borrowing capacity by between 10% and 30%, subject to affordability checks and loan-to-income limits. The bank has also recently lowered its fixed and variable rates, cut arrangement fees from 1.00% to 0.50%, and capped fees for owner-occupiers.
Peter Izard, head of intermediary business development at Investec Bank, said: “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.”
In practical terms, a client earning £300,000 per year with no dependents and £66,000 annual expenditure could now borrow up to £1.096m on a 2-year fixed rate mortgage – an increase of nearly £150,000. A client earning £550,000 with two dependents and £5,000 in monthly debt could see their borrowing potential rise from £1.102m to £1.358m on a similar product.
Investec recently reduced its tracker mortgage rates by up to 0.58% and fixed rates by up to 30bps. The bank offers loans up to £10m with flexible repayment options including capital and interest, interest-only, and part-and-part structures. Terms extend up to 35 years and clients can be considered for up to 95% loan-to-value, depending on circumstances.
