The cautiousness displayed by banks in the wake of the credit crisis is not only harming low income homeowners, but also the wealthy, experts have said. A combination of the credit crunch and new European regulations has resulted in banks thinking twice before granting wealthy borrowers high-end mortgages .
With loans in excess of 95% of the value of a property no longer on offer, for now at least, even those with sizeable salaries and attractive bonuses will find it harder to have high-end loan applications approved. Banks may now ask for a greater range of information, including information about recent bonuses in addition to a borrower’s basic salary.
However, two banks are going against the grain – Investec and Abbey . Investec last week launched a dynamic promotion which will be tailored to each individual borrower. The South African bank is promoting an offer aimed exclusively at City workers with a basic salary in excess of £300,000, as well as large annual bonuses. The rates on offer will differ for each borrower dependent on the size of the loan and their annual income.
Abbey, meanwhile, are offering a two-year fixed rate of 5.19% on loans of up to £3 million for those with a large enough salary. The bank will charge a £3,000 arrangement fee, though the loan is available on a maximum loan to value of 75%.
Abbey and Investec Offering Special Deal for Investment Bankers
Fri, 29 Feb 2008
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