Metro Bank has launched near prime residential mortgages, for borrowers who may be struggling to get a mortgage elsewhere.
The bank has conducted new research, in partnership with YouGov, which reveals that 81% of people with adverse credit history agree that banks and other lenders aren’t interested in helping people like them. This rose to 90% amongst those aged 45-54.
The research discovered that 41% of the respondents agree that they have been prevented from getting a mortgage or remortgage as a result of their poor credit history. A similar amount (43%) of people are worried that their mortgage lender options are limited and they won’t be able to access a mortgage or remortgage their current home, due to their credit history.
Metro Bank’s near prime offering sits alongside its core range of residential mortgages, and enables borrowers with an imperfect credit history to purchase a new property or re-mortgage an existing property, at up to 80% loan to value (LTV).
The new range will accept applicants with lower than average credit scores and those who’ve had unsatisfied county court judgements (CCJs) and defaults, with no requirement for these to be repaid before the end of the loan term. The bank will accept unsatisfied defaults of up to £1,000, an increase from £500.
This follows off the back of Metro Bank reducing rates and increasing maximum loan sizes on its 85% and 90% LTV mortgages in February, whilst in November 2020 the bank enhanced its criteria for buy-to-let lending.
Charles Morley, director of mortgage distribution at Metro Bank, said: “It’s been an exciting few months for the Mortgages team at Metro Bank. We’ve enhanced our criteria for buy-to-let 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.”
