Specialist mortgage lender Investec Private Banking is hoping to attract more high net worth buy-to-let investors with a new range of buy-to-let mortgages.
The selection of two, three, four and five-year fixed rate buy-to-let mortgage products on offer have been linked to Investec bank’s base rate, rather than the three-month LIBOR.
The fixed rate deals, available to individual landlords and those investing through a limited company structure, feature rates starting from 2.69% at 50% loan-to-value (LTV), and are available up to 70% LTV.
The buy-to-let base rate tracker product currently has rates starting from 2.25% over Investec bank’s base rate of 0.25% at 50% LTV, with rates also available up to 70% LTV.
A Business Development Manager at Investec Private Banking, Peter Izard, comments on the new range aimed at high net worth landlords: “We’re delighted to be expanding our buy-to-let range by offering brokers and their clients a choice of competitive fixed rates or trackers linked to Investec bank base rate.
“Our proposition is designed to appeal to high net worth borrowers, particularly those looking to acquire rental property in the higher value prime central London and South East property markets.”
The high net worth range follows an announcement from Paragon Mortgages yesterday, which included details of its updated buy-to-let range, with longer term planning in mind.
Landlords – including high net worth individuals – thinking of investing in the buy-to-let sector must be aware of the Government’s reduction in tax relief on mortgage interest and other finance costs, which is currently being gradually introduced.
Some basic rate taxpayers may be forced into the higher tax bracket as a result of the changes.