© Reuters.
Metro Bank, under the guidance of Charles Morley, Director of Mortgage Distribution, announced on Thursday a series of strategic product enhancements, including revisions to its buy-to-let stress rates and price reductions in residential rates. These changes follow broker feedback and are part of Metro Bank’s efforts to provide more choices for customers to achieve their property goals.
The bank’s new buy-to-let rates now start at 4.79% for two-year fixes and 4.99% for five-year options. The two-year fixed rate stress rate in the buy-to-let range is the pay plus two per cent; five-year fixed pound-for-pound remortgages stand at pay rate plus 0.5 per cent. Portfolio landlords’ background portfolio stress rate is set at 5.5 per cent, while there is no stress rate for non-portfolio landlords.
In addition to these changes, Metro Bank has also reduced residential rates by 30 to 70 basis points for all customers. These reductions follow a recent £325 million capital raise and £600 million debt refinancing. Two-year fixed rates now start from 4.79 per cent, while five-year fixed rates begin from 4.99 per cent, with an option of a four per cent fee or a £1,999 fee.
These revisions are expected to spur activity as the year draws to a close and we move into 2024. The bank is predicting a busy end of year, with customers taking advantage of the new rates to achieve their property goals.
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