Fixed RateJun 8 2017

Metro Bank lowers five-year fixed rates

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Metro Bank lowers five-year fixed rates

Metro bank has cut rates across its five-year-fixed-rate residential range by up to 0.15 percentage points.

Residential mortgages under £2m now start at 1.74 per cent up to 65 per cent loan-to-value (LTV), 1.84 per cent up to 70 per cent LTV and 2.04 per cent up to 75 per cent LTV.

Buyers with smaller deposits can opt for a 2.09 per cent fix at 80 per cent LTV, a 2.24 per cent at 85 per cent LTV and 2.64 per cent at 90 per cent LTV.

The bank has also reduced its two and three-year fixed rates at 85 per cent LTV by 10 bps, from 2.29 per cent to 2.19 per cent.

Charles Morley, director of mortgage distribution at Metro Bank, said: “Given the widespread uncertainty at the moment, we want to provide our customers with rates that will not only benefit their pocket, but will give them peace of mind for the long-term.”

Adrian Kidd, IFA at London-based Radcliffe and Newlands, commented: “Five-year fixes have probably been the most popularly accepted product term that we have done for the last year.

“The uncertainty started with the Brexit referendum, and there is even more uncertainty now. People are staying put maybe a bit longer than they used to and are not as averse to locking in as they were four to five years ago.

“I have always believed that anything under 3 per cent for a five-year fixed rate is almost a no-brainer, particularly if it is portable.

“The only way the market is going to stay buoyant is if lenders are innovative and aggressive on pricing. The more deals like that, the better.”

simon.allin@ft.com