Metro Bank has this morning announced its entry into the near prime mortgage market.
Speaking at a briefing earlier, Metro Bank director of mortgage distribution Charles Morley said the move was part of the lender’s ambition to become the UK’s “number one specialist bank.”
The bank has become the first high-street lender to offer near prime mortgages and says it intends to announce entry into further specialist areas in the coming weeks and months.
The lender’s near prime range offers up to 80 per cent LTV borrowing to those with an imperfect credit history to purchase a new property or re-mortgage an existing property.
The new range will accept applicants with lower than average credit scores and those who’ve had unsatisfied county court judgements and defaults, with no requirement for these to be repaid before the end of the loan term. The bank has also confirmed that it will accept unsatisfied defaults of up to £1,000, an increase from £500.
Two- and five-year fixes are available with rates from 3.79 per cent to 4.19 per cent.
Metro Bank head of mortgage pricing Tony Davis says the lender is currently undergoing a system upgrade, which will allow it to enter further “niche markets.”
Morley says: “It’s been an exciting few months for the Mortgages team at Metro Bank. We’ve enhanced our criteria for BTL lending, cut rates on our higher LTV products and added significant expertise to our team with a number of new hires. This all serves a purpose: to grow into the UK’s number one specialist lender. We’re continuing to make tangible progress, and we’re thrilled to offer this latest near prime offering to customers who may have been overlooked by the vast majority of the market.”
