Metro Bank Buy-to-Let Mortgage and Interest-Only Changes

by | Tuesday 18th Jun 2024 | Mortgage News

Metro Bank has recently announced significant enhancements to its interest-only and buy-to-let (BTL) mortgage criteria, marking a strategic move to strengthen its position as a leading specialist lender on the high street. These changes are designed to offer greater flexibility and accessibility to borrowers, making Metro Bank’s mortgage products more attractive and competitive in the market.

Key Changes To Interest-Only Mortgages

One of the notable updates is the increase in the loan-to-value (LTV) ratio for interest-only mortgages, now available at up to 80%. This change provides borrowers with the opportunity to access higher loan amounts relative to the value of their property, which can be particularly beneficial for those looking to leverage their property’s value for various financial needs. Additionally, Metro Bank has removed the minimum property value requirement when using the sale of the mortgage property as a repayment strategy. However, borrowers must still ensure that at least £250,000 is accounted for through equity, capital repayment, or other interest-only repayment strategies. This adjustment simplifies the criteria and potentially broadens the pool of eligible properties for interest-only mortgage applicants.

Enhanced Criteria For Buy-to-Let Mortgages

For buy-to-let customers, Metro Bank has revised its affordability stress rates. Now, when a 5-year fixed rate product is selected or for remortgage applications with no additional capital raising required, the stress rates will align with the product’s interest rate. This change can make it easier for landlords to meet affordability requirements and secure financing. Metro Bank has also increased the number of properties a customer can mortgage with them to 10, with a maximum aggregate mortgage debt of £10 million. This expansion is coupled with updates to the interest coverage ratios (ICRs), further enhancing the bank’s appeal to property investors looking to grow their portfolios.

About Metro Bank

Metro Bank, established in 2010 by Anthony Thomson and Vernon Hill, was the first new high street bank to open in the UK in over 100 years. The bank itself offers a range of personal and business banking services, including mortgages, and has a growing presence with 76 branches across the UK. Although not one of the most well known mortgage lenders in the UK, Metro is quickly becoming a big player in the mortgage world.

How Oportfolio Mortgages Can Help

At Oportfolio Mortgages, we are dedicated to helping you navigate the complexities of obtaining a mortgage. As a whole-of-market mortgage broker, we have access to a wide range of mortgage products from various lenders, including Metro Bank. Our expertise and comprehensive market coverage enable us to find the most suitable mortgage options tailored to your specific needs and financial situation. Whether you are interested in Metro Bank’s enhanced interest-only or buy-to-let mortgage offerings, or exploring other mortgage options, our team of experienced brokers is here to assist you every step of the way. We provide personalised advice and support to ensure you make informed decisions and secure the best possible mortgage terms.

Contact Oportfolio Mortgages today to learn more about how we can help you achieve your homeownership or property investment goals with Metro Bank.

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