Borrowing

Our mortgages can fund the purchase or renovation of your principal residence, a holiday home or an investment property. You can also access our lending services to remortgage homes you already own.

Clients can borrow from Nedbank Private Wealth up to the age of 80, with rates decided on an individual basis depending on the size of the loan relative to the value of the property, the loan term and how long you have been a client.

Please note that we do not finance houses of multiple occupancy, and we do not ask for investments to be transferred to us as a condition of lending.

While the September 2022 increase in support for first time buyers in England and Northern Ireland will mean properties that cost less than £625,000 receive relief up to a threshold of £425,000 in stamp duty land tax, the steady rise in property prices across the UK and in Jersey and the Isle of Man, means that many need the help of family to get on the property ladder.

We can not only support families seeking this support, but also ensure that the guarantors have the right wealth planning support to protect their future finances and their investment in the next generation(s).

Our interest-only mortgages mean you only pay off the interest on the amount you borrow, while using investments or other assets you have (known as ‘repayment plans’) to pay off the total amount borrowed at the end of your loan term.

It’s an approach many of our clients adopt as they can be advantageous if:

• You want your monthly loan payments to be lower. Given that you are only paying the interest, the regular costs are typically lower than for a repayment mortgage.
• You have the potential to repay the debt faster, especially if you already have an exit strategy in mind.
• You are seeking to downsize given the monthly payments can be budgeted, with the proceeds of the property sale used to repay the debt. The difference used to purchase a new, smaller, property.

Often known as Lombard loans, the main benefit is that you can access additional capital without having to sell any of your existing assets, or affecting your long-term financial plans. You can continue to benefit from the earning potential and any increase in value in your investments, while having the flexibility to explore other investment opportunities.

Other benefits include:
– An ability to tailor a loan to your specific requirements
– Access to competitive interest rates
– An easier and cheaper to set up than using property as security
– No need for a surveyor’s valuation or conveyancing fees (a building survey is still recommended)
– An invariably swifter and more cost-effective approach than a bridging loan
– Where used for the purchase of rental property, tax benefits may apply
– All costs are clearly defined at the outset.

This type of loan is available from a minimum of £250,000 (or currency equivalent).