Metro Bank has enhanced the criteria across its Interest Only and Buy-to-Let mortgages.
Interest Only mortgages will now have access to a higher LTV at 80%. The minimum property value when using sale of mortgage property as a repayment strategy has also been removed. However, a minimum of £250k must be made up of equity, capital repayment and/or other interest only repayment strategies.
Buy-to-Let customers will also see a number of enhancements. Affordability stress rates will now be at the product interest rate when a five year fixed rate is selected or for remortgage applications where there is no additional capital raising required. The number of properties a customer can mortgage with Metro Bank has also been increased up to 10, (up to a maximum aggregate mortgage debt of £10million) alongside further updates to our Income Coverage Ratios.
Charles Morley, Director of Mortgage Distribution at Metro Bank comments:
“Today’s changes take us even closer towards our goal of being the number one specialist lender on the high street. From speaking to our broker network we know that these changes will be welcomed and we trust that this will also be felt by home owners and property investors across the country.”
The changes in detail:
Interest Only
- Maximum amount on interest only increased to 80% LTV, part and part without sale of subject property remains at 85% LTV.
- Removal of £600k minimum property value when using sale of mortgage property as a repayment strategy – a minimum of £250k must be made up of equity, capital repayment and/or other interest only repayment strategies (subject to loan to value restrictions).
Buy to Let
- Five-year fixed and pound for pound remortgages now stressed at payrate
- Revised Interest Cover Ratio
- Portfolio Buy to Let – maximum number of buy to let mortgaged properties with Metro Bank increased to 10 or £10m in buy to let lending, whichever binds first. A maximum of 10 Buy to Let properties owned (mortgaged or unencumbered, including within limited companies) in total also applies.