Investec reduces mortgage stress rates

Investec Bank plc, a leading international financial services provider, today announces that high-net-worth clients (HNW) looking to purchase or remortgage a home will now be able to borrow more from Investec.

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 these changes, HNW clients applying for a mortgage from Investec may now be able to borrow between 10% and 30% more than before these changes, depending on their individual circumstances and subject to affordability checks and loan to income limits. 

Peter Izard, 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.”

Examples of how this impacts borrowers:

Example 1:

£300,000 Income, no dependents, No debt, £66,000 yearly expenditure with a 25 Year Term full Capital & Interest 80% LTV.
 

Example 2:

£550,000 Income, two dependents, £5,000 monthly debt, £128,000 yearly expenditure with a 25 Year Term 70% Interest Only 15% Capital & Interest.
 

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.

Investec offers a comprehensive range of residential mortgages designed to meet the unique needs of clients. Investec provides loans of up to £10 million with flexible terms, including fixed and variable rates for 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. We continually evaluate how we can better serve our brokers and their clients, ensuring our rates complement its high levels of service and speed of delivery.