Metro Bank have announced that they will be making some pretty major changes to their mortgage products for residential, remortgage, and buy-to-let ranges. The London based bank has always been known as a metropolitan lender with competitive services aimed at professionals and business people based in cities. But, this week they have announced that they will be making some significant changes to their products. Although not raising interest rates yet, like countless other lenders, the bank has made changes to fees they charge and stress rates for their loans.
The changes announced are as follows:
- They will lift the product fee to £1,999 across its core, remortgage-only, near prime and professional ranges, which it says can be added to the total mortgage amount. There is no change to large loan product fees.
- A 1% product fee will be added to its BTL range, which it again says can be added to the total mortgage amount.
- It will also lift its five-year fixed stress rate on BTL products to 5.5% at 140% of the mortgage interest amount. This was previously four per cent up to 75 per cent loan to value (LTV) and 4.5 per cent up to 80 per cent LTV.
On these changes, Metro Bank have said: “Rates are increasing by differing amounts across our product range, alongside an increase in the buy-to-let rental calculation, with new rates available and published on sourcing systems from 11th of August.”
If you or anyone you know has a mortgage with Metro Bank or any other lender and wants to discuss how we can help, please feel free to give our advisor team a call today.