Residential mortgages

Key information

• Main features of your mortgage

  Our mortgages are provided by Investec Bank plc, 30 Gresham Street, London EC2V 7PG and can be used to finance the purchase or refinance (including additional borrowing) of your main residence or a second home (such as a holiday home).

  Our mortgages can also be used to fund the self-build or renovation of your main residence or a second home. We have buy-to-let mortgages for property that is not your main residence or a second home.

  We provide a wide range of tailored mortgage solutions. If you would like an illustration which addresses your specific mortgage needs, talk to a private banker today.

  We require a first legal charge on the property which must be in the UK and owned by you. We may require additional security from you depending on your circumstances.

  We will confirm our security requirements once we have assessed your mortgage application. For buy-to-let mortgages, the property must be let out by you to tenants who intend to occupy it for residential purposes only. It is a requirement that the property must not be occupied at any time by you or by a related person. In addition, you must enter into a written tenancy agreement with your tenants.Other terms and conditions apply in relation to your letting the buy-to-let property. Please contact a private banker for further details.

  The mortgage term can extend to a maximum of 25 years. Your regular mortgage instalments may be on a monthly, quarterly, bi-annual (six monthly) or annual basis. So for example, on a 10-year mortgage you would make 120 monthly instalments, 40 quarterly instalments, 20 bi-annual instalments, or 10 annual instalments. Where we provide you with an illustration, it will detail the amount of your regular mortgage instalments according to your specific mortgage needs.

  Where you have a repayment mortgage, your mortgage instalments will reduce the outstanding balance throughout the term.Where you have an interest-only mortgage, the amount of interest you pay with your mortgage instalments will vary according to the number of days in each interest charging period.In either case, the amount of your mortgage instalments will change in line with interest rate changes.
  

• Interest rate

  Our interest rate can be one of, or a combination of, the following:

  • Fixed throughout the mortgage term.
  • A variable rate tracking a reference rate (Investec Bank plc's base rate). The interest rate will change in line with changes in the reference rate, but will not go below a minimum rate (called a “floor”).
  • A Fixed rate mortgage, which reverts to a lifetime tracker over Investec Bank Base Rate (IBBR). Your lifetime  tracker margin will depend on your loan to value and can be found in your mortgage illustration and offer.

• Repayment options

  Our mortgages can be one of, or a combination of, the following:

  • Interest-only: where your mortgage instalments throughout the term consist of interest only. You will still owe the capital amount of the loan at the end of the mortgage term, and you must make your own arrangements to repay this capital amount in full.
  • Repayment: where your mortgage instalments will repay the capital amount of the loan plus interest throughout the mortgage term. This means that at the end of the term your mortgage will be repaid in full.
  • Interest-only moving to repayment: where you pay only the interest on the capital amount of the loan at the start of your mortgage term. After an agreed period you will then convert to repay the capital amount of the loan plus interest. This means that at the end of the term your mortgage will be repaid in full.

  Please note our interest-only moving to repayment option is not available for buy-to-let mortgages.

• Valuation requirements

  The loan is subject to a satisfactory valuation of the property by valuers appointed by us. We will arrange the valuation report and you must meet the valuation fee before any mortgage offer is issued to you.

  For buy-to-let mortgages, in addition, the estimated monthly rental income of the buy-to-let property as assessed by our valuers must meet theminimum rental value required to qualify for a loan.
  

• Currency

  We only lend in GBP pounds sterling. We will, however, consider applications from clients receiving income or holding assets in currencies other than GBP pounds sterling.

  We will also consider applications from clients who are not UK resident. For these purposes, we recognise all major world currencies. Please contact a private banker for further details.

  You should be aware that the equivalent value of the loan in your foreign currency could change, such that if the value of your foreign currency fell relative to GBP pounds sterling, then the equivalent value of your loan would increase.

  In that event you may have difficulty affording your regular repayments and the overall cost of your loan could increase significantly.

• Insurance

  You must take out suitable buildings insurance covering the full reinstatement value of your property.

  We may require you to take out other insurances as additional security for your mortgage, such as life insurance.

  You do not have to take the insurance through Investec Bank plc.

• Cost of the loan to you, and possible further costs

  The total cost of the loan to you includes:

  • An arrangement fee.
  • A CHAPS fee payable for the release of funds.
  • The Bank’s legal fees.
  • All valuation fees associated with the loan.
  • A security release fee payable when the security we hold is released.

  Other costs which you may incur include:

  • Any fees you must pay to your adviser or broker in connection with the proposed loan.
  • Your own solicitor's costs connected with the mortgage.
  • Any other professional fees, such as quantity surveyor and architect fees, where appropriate.
  • Notary costs and costs connected with the appointment of an agent for receipt of notice or process in the UK, where you are not a UK resident. An early repayment charge if you repay your mortgage before the end of the term.
  • Fees connected with a renovation or self-build mortgage.

• Early repayment charge

  If you repay your mortgage early you may incur an early repayment charge. We can provide you with an illustration which will confirm whether an early repayment charge will apply and, if so, how this is calculated.

• Interest-only warning

  Where your loan is on an interest-only basis, in full or in part, you will need to make separate arrangements to repay the capital amount of the loan which you will owe at the end of the mortgage term.

• Missing payments

  If you miss payments, we can inform credit reference agencies of this. This may affect your ability to apply for credit in future.

  For buy-to-let mortgages, the rental income paid to you by your tenants is assigned to us. We may require your tenants to pay the rent directly to us if you miss payments.