Metro Bank improves buy-to-let stress rates and criteria as it launches into more specialist mortgages
Metro Bank today announces changes to its criteria for buy-to-let lending, designed to make the bank a more specialist lender to support its growing number of customers.
In a positive move for borrowers, the bank has reduced its stress test rate on five year BTL mortgages, from 5.5% to 4.5%, given the longer term nature of the product. The new rate compares favourably with its competitors in the market.
In addition, the maximum age for a BTL applicant at the end of their term has been increased from 80 to 85. The bank has made this decision to assist more borrowers who may want to continue using a BTL property to help with their retirement planning.
Although the bank already has a comprehensive BTL offering – including having no minimum income requirements1, allowing up to four applicants and enabling them to use top slicing from their earned income – the new changes offer greater flexibility than ever before. This marks a meaningful first step as the bank embarks on plans to grow into a truly specialist lender over the next 12 months.
Charles Morley, director of mortgage distribution at Metro Bank, comments: “This is an important first step on our specialist mortgages journey. Our BTL range is now more flexible than ever before with a truly specialist offering that provides the full range of options for borrowers, many of whom are struggling to get a mortgage due to the challenges of the coronavirus pandemic. We have plenty more planned over the next 12 months as we embark on our mission to become the UK’s leading specialist mortgage lender, offering products as individual as our customers are.”
Metro Bank also remains one of the only lenders in the market still offering 90% loan-to-value (LTV) residential mortgages, at a time when many competitors have withdrawn higher LTV products.