21 Sep 2018

Investec launches 10-year buy-to-let mortgage

Investec Mortgage Intermediaries Team

Investec Private Bank has expanded its mortgage portfolio to include a new longer-term solution for buy-to-let investors.

Investec Private Bank has expanded its mortgage offerings, introducing a 10-year, buy-to-let fixed-rate mortgage. The new mortgage, fixed at a rate of 3.69% for lending up to a 70% LTV, features the option for borrowers to overpay up to 10% per annum without an early repayment charge.[1] It serves to complement Investec’s existing 2-, 3-, 4- and 5-year fixed-rate mortgages.

 

Peter Izard, Business Development Manager at Investec Private Bank, says the new product demonstrates the bank’s commitment to buy-to-let investments, despite uncertainty in the market and the potential impact of Brexit.

 

“The buy-to-let market continues to show resilience, and the fundamentals remain compelling,” Izard says. “We’ve seen high net worth clients reassessing their strategies and adjusting their portfolios, enabling the asset class to continue providing them with long-term capital potential, although possibly with slower growth.

 

“They are looking past the tax changes while focusing on buy-to-let as an excellent underlying investment opportunity to provide positive returns for their portfolios.”  

 

The 10-year, fixed-rate solution is particularly suited to borrowers with complex lending needs. It also offers borrowers the opportunity to lock in interest rates amid expectations for future interest rate rises.

 

“We are passionate about enabling our clients to achieve their ambitions,” Izard says. “We currently offer a wide range of buy-to-let fixes in comparison to our competitors and have taken the opportunity to broaden this offering.” 


[1] Overall representative example based on borrowing of £1,100,000. The overall cost of comparison 3.9% APRC. Initial rate 3.69% fixed for a loan term of 10 years (120 instalments of £3,382.50). Fee £5,500 (0.5% of the loan) Total amount payable £1,514,760.

 

 

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