South African private bank Investec has added a 10-year buy to let fixed rate mortgage to its existing portfolio of two, three, four and five-year fixes. This not only extends but simplifies the potential mortgage range.
Despite continued uncertainty surrounding Brexit and recent tax changes, this new product is said to demonstrate Investec’s unwavering commitment to the buy-to-let market and confidence for its future. The bank is jointly listed on the Johannesburg and London Stock Exchanges.
With a rate of 3.69% and the ability to overpay up to 10% each year without an early repayment charge, the 10-year fixed rate is a very attractive feature. Investec has noticed its high net worth clients readjusting their portfolios in recent times, showing that people are favouring enabling asset class to provide capital rather than speedier growth.
Investec says that it is clear that HNW clients are prepared to overlook tax changes and focus on the attractive returns on their potential buy-to-let portfolios. “Our high net worth clients often have more complex lending needs than typical borrowers and may require a mortgage specifically designed for their unique requirements. Listening to our clients’ requirements, there was strong demand for a longer-term fixed product, particularly with future interest rate rises anticipated.”
