Investec Bank has announced a series of changes to its mortgage offering for high net worth (HNW) clients, including significant reductions in arrangement fees and new fee caps aimed at improving affordability and transparency.
The changes apply to all new mortgage cases submitted and follow feedback from brokers working with HNW individuals.
Under the new structure:
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Residential mortgage arrangement fees are reduced from 1.00% to 0.50%
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Self-build mortgage fees drop from 1.50% to 1.00%
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Arrangement fees are now capped at £50,000 for owner-occupied properties and £75,000 for self-build projects
Peter Izard (pictured), head of intermediary business development at Investec Bank, said the move was designed to improve client outcomes and demonstrate the bank’s responsiveness to broker input.
“We have listened to our brokers and, in response to their feedback, have reduced arrangement fees. This means that clients not only pay less to arrange their mortgages but also that those with larger loans will benefit from a fixed fee rather than paying a percentage.
“We pride ourselves on the quality and speed of execution, and these enhancements further demonstrate our ongoing commitment to providing an out of the ordinary experience for our clients.”
Investec specialises in complex mortgage needs, taking a holistic view of clients’ finances, including investment income, bonuses, and other non-salary earnings. The bank offers loans up to £10 million, with flexible repayment terms of up to 35 years, and can consider loan-to-value (LTV) ratios of up to 95% in some cases.
“Brokers play a crucial role in navigating the complexities of high net worth lending,” Izard added. “Our goal is to equip them with a range of products tailored to their clients’ specific needs. By considering a broader range of assets in our mortgage decisions, we can help clients secure the funding they require.”