Metro Bank has slashed the rates on a trio of its residential two-year fixed rate and tracker mortgages.
The 24-month fixed-rate products for residential mortgages under £1.5m are available at 2.04, 2.29 and 2.59 per cent, at 70, 80 and 85 per cent LTV, respectively.
The 80 per cent LTV two-year tracker rate is available at 2.09 per cent, while the 85 per cent product comes at a rate of 2.39 per cent.
The lender recently cut rates across its five-year fixed-rate mortgage range starting from 2.84 per cent available up to 60 per cent LTV.
Metro Bank is now offering rates of 2.99, 3.39 and 3.69 per cent at 70, 80 and 85 per cent LTV respectively.
In July, 70 per cent LTV two-year fixed rate and two-year tracker rate were reduced to 2.39 and 2.19 per cent respectively. For 80 per cent LTV two-year fixed rates were made available at 2.69 per cent and two-year tracker rates at 2.49 per cent.
In addition, the bank replaced the previous 0.5 per cent product fee for higher value residential mortgages over £1.5m with a flat fee of £4,999.
Metro Bank, which launched in 2010, has also reduced its buy-to-let range by up to 60 basis points. These rates, previously available for a maximum loan of £750,000, has been made available for valuations up to £1m.
Providers view
Paul Riseborough, managing director of customer propositions, of Metro Bank, said: “We are delighted to be able to reduce rates for our customers and are confident that this, combined with our ability to underwrite on a case-by-case basis, will continue to provide an exciting proposition for our customers and broker partners. Our customers and their needs always come first.”
Adviser’s view:
David Hollingworth, associate director at Bath-based London & Country Mortgages, said: “There has been a host of lenders who have taken the step to reprice their mortgage rates in recent times. It is good to see that Metro Bank appreciates the need to keep up with the pace of the market.
“The 2.04 per cent at 70 per cent LTV is not the lowest rate in the market - I believe Virgin Money offers 1.79 per cent at 70 per cent LTV for remortgages. The reductions at 80 and 85 per cent LTV are pretty competitive and is a signal of intent from the bank.
He added: “It is the same story with the reduction in tracker mortgages rates. Even though they are not the lowest rates in the market, they are still very competitive.”
Charges:
• A transfer fee of £35
• A valuation fee of £200 (applicable on values up to £200,000), £300 (£300,000), £400 (£400,000), £500 (£500,000), £600 (£600,000), £700 (£750,000) and £800 (£1m). Valuation fees of values over £1m vary.
• A £150 discharge fee payable on redemption of mortgage.
Verdict
Cuts in fixed-rate mortgages are in fashion at this moment in time, with a number of banks and building societies announcing reductions. The people who will benefit from any increasingly competitive and saturated market are ultimately those in the market for a mortgage, as providers continue to offer bargain deals in a bid to attract more custom.
