Investec Private Bank is offering landlords the opportunity to lock into low interest rates for a decade, after the lender launched a 10-year buy-to-let mortgage fixed at 3.69%.
This new longer-term fixed product features the ability to overpay up to 10% per annum without an early repayment charge.
Peter Izard, business development manager at Investec Private Bank, commented: “Despite uncertainty in the buy-to-let market and the potential impact of Brexit, it continues to show resilience and the fundamentals remain compelling.”
Part of the reason Investec has launched the 10-year buy-to-let fixed rate product is to cater for high-net-worth individuals (HNWI) who often have more complex lending needs than typical borrowers and may require a mortgage specifically designed for their unique requirements, particularly with future interest rate rises anticipated.
Izard added: “We have seen High Net Worth clients reassessing their strategies and adjusting their portfolios, enabling the asset class to continue providing them with long term capital potential, although possibly with slower growth.
“In particular, we have seen high net worth clients looking past the tax changes while focusing on buy-to-let as an excellent underlying investment opportunity to provide positive returns for their portfolios.”
But landlords taking out long-term fixes should recognise that this could be a gamble due to the associated charges relate to refinancing or repaying the loan within the fixed-rate term.
Ultimately, while fixing can provide long-term security, it can also limit the flexibility of the borrower during the fixed period.
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