MortgagesAug 1 2014

Metro Bank reduces rates on residential and BTL mortgages

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ByMi Zhang

For residential mortgages under £1.5m, the bank is reducing rates on its two-year fixed rates by 30 basis points and two-year tracker mortgages rates by 40 basis points.

The new 70 per cent loan-to-value two-year fixed rate and two-year tracker rate are now at 2.39 per cent and 2.19 per cent respectively.

For 80 per cent LTV, two-year fixed rates are available at 2.69 per cent and two-year tracker rates are available at 2.49 per cent.

For mortgages up to 85 per cent LTV, two-year fixed rates are available at 3.19 per cent, and two-year tracker rates are available at 2.99 per cent.

For higher value residential mortgages over £1.5m, Metro Bank has replaced the previous 0.5 per cent product fee with a flat fee of £4,999.

Metro Bank also reduced by up to 60 basis points its buy-to-let range. These rates, previously available for a maximum loan size of £750,000, will now be available for valuations up to £1m.

For 75 per cent LTV, two-year fixed and two-year tracker rates are available at 3.39 per cent and 3.19 per cent.

For five-year fixed rates at 75 per cent LTV, rates are available at 4.29 per cent.

For 65 per cent LTV, two-year fixed rates and five-year fixed rates are 3.19 and 3.99 per cent respectively.

Metro Bank currently has 26 stores across Greater London, and the lender recently announced plans to expand beyond 200 stores by 2020.



Charles Morley, head of mortgage distribution, said: “At Metro Bank, our customers and their needs always come first. We are always looking at ways to offer our customers products that will suit their needs and we are confident that this, combined with our ability to underwrite on a case-by-case basis and our recently launched online mortgage portal, will enable us to continue offering the very best in service for our customers.”


David Hollingworth, associate director at Bath-based London & Country Mortgages, said: “As the trend for fixed rates has been for rates to climb in recent months, it is great to see a lender looking to sharpen its rates up. The cuts might still not quite see them at the very top of the charts on rates, but it certainly puts Metro in the frame on cost and they will hope that their good service will make for an attractive all round package. As well as making cuts to most rates, they are also maintaining the price of their already very competitive five-year fixed rates, including a leading deal at 3.09 per cent to 60 per cent LTV with a £999 fee.”