It takes overall income and wealth into account rather than just the value of an individual’s property and their regular monthly income.
Investec’s £1m plus mortgage is aimed at the top end of the market, with loans available exclusively to individuals with sustainable overall earnings in excess of £300,000 a year and an established personal net worth in excess of £3m who are looking to borrow a minimum of £1m.
These individuals are typically purchasing properties worth in excess of £1.5m.
Jack Jones of Investec Specialist Private Bank, says: “We expect our product to be particularly popular among City professionals, many of whom are set to receive sizeable bonuses over the coming months as part of their overall remuneration packages.
“However, a number of these individuals struggle to get mortgages and other personal loans approved as many banks are geared towards far less flexible lending criteria and are not easily able to create bespoke offerings for individual clients.”
Research conducted in October 2010 by Investec among over 100 City professionals reveals three quarters, 74% of those who are expecting a bonus believe that it will be bigger than last year while 11% believe that it will be the same size.
Just under one in ten, 8% are anticipating a smaller bonus than in 2009/20102.
Jones adds: “Whilst it appears that bonus levels may be returning to pre-credit crunch levels for many City professionals they may still find it difficult to secure a mortgage elsewhere. We have launched this £1m plus mortgage to cater for clients with irregular income flows which may take the form of bonuses and who find it difficult to obtain larger mortgages, despite having significant personal wealth.
“Our new £1m plus mortgages can be secured against a variety of assets including property, deferred shares, investment holdings and offshore deposits, and are available in a number of currencies.”