Metro Bank cuts rates on fixes and trackers

Metro Bank cuts rates on fixes and trackers

Metro Bank has cut rates across a range of its fixed rate and tracker products by up to 0.2 percentage points.

For residential mortgages under £2m, five-year fixed rates now include options at 1.69 per cent up to 65 per cent loan-to-value (LTV), 1.84 per cent up to 75 per cent LTV and 2.09 per cent up to 85 per cent LTV.

Meanwhile, two-year fixes are available at 1.89 per cent up to 80 per cent LTV, 1.99 per cent up to 85 per cent LTV and 2.29 per cent up to 90 per cent LTV.

Article continues after advert

All of the above products come with fees of £999.

The challenger bank’s two and five-year trackers up to 85 per cent LTV have also been cut by 0.1 percentage points, with rates now starting from 1.84 per cent and the five-year tracker featuring a three-year early repayment charge.

Charles Morley, director of mortgage distribution at Metro Bank, said: “We’re here to show our broker partners and customers that we mean business. 

“With increasing uncertainty about a potential rate rise, we want to give people peace of mind by providing competitive rates, alongside the flexibility to overpay by up to 20 per cent per year.”

Bob Riach, owner at Scunthorpe-based Riach Financial Advisers, said: “They are good rates and sound competitive. You tend to find Metro Bank come up now and again with market-leading rates, and as they are not as well recognised they need to do that to get the business.

“I find clients tend to be reluctant to use them because they have never heard of them. Hopefully that will change as they get more marketing out and awareness grows.”