Metro Bank is looking to increase its buy-to-let lending and has made positive changes to its proposition.
The specialist lender has announced an increase on maximum loan sizes for its 75% LTV buy-to-let mortgages to £2m from £750k. The bank now also accepts properties with thatched roofs and ex-local authority flats.
Metro Bank made a number of significant changes to its buy-to-let range in November of last year. Changes such as decreasing the five-year fixed stress rate to 3.5% (from 4%) for loans up to 75% LTV were well-received and popular amongst the broker community, alongside rate reductions on five-year fixed products and offering buy-to-let purchase and remortgage products up to a maximum of 80% LTV, an increase from 75% LTV.
An arrangement fee of £1,499 will apply (£1,999 for 80% LTV). Loan size is limited to £500k at 80% LTV. Annual overpayment of loans is limited to 10% of initial amount borrowed.
Charles Morley, director of mortgage distribution at Metro Bank, said: “Metro Bank offers a compelling range of mortgages for buy-to-let borrowers. In recent months we’ve increased several of our maximum LTVs, reduced rates and also cut the stress test rate we apply on loans up to 75% LTV.
“Alongside the fact that we have no minimum income requirements, a maximum applicant age of 85 upon completion of the loan and allowing up to four unrelated applicants on each buy-to-let mortgage application, we’re seeing significant interest from the market in our buy-to-let offering.”
