Metro Bank has introduced a 90% LTV product into its residential mortgages range, following a period where lenders have pulled back on higher LTVs.
Many lenders withdrew 90% LTV ranges during the summer and in September, HSBC suspended offering its 90% mortgages to new customers due to significant pressure on service levels. The fewer banks left offering such ranges have seen volume spikes.
Metro’s own smaller deposit mortgage does come with certain terms - customers on furlough, or who have recently been furloughed - will not be accepted. The mortgage is available on properties up to a maximum value of £600,000 and comes with a £999 product fee.
Jeremy Cook, head of corporate relationships (mortgages) at Metro Bank, said: “We’re pleased to reintroduce our five year fixed rate mortgages at 90% LTV. There are lots of customers with smaller deposits looking for a mortgage at the moment, and we’re thrilled to support them as they seek to get on the housing ladder or move home.”
The new product followed a separate update earlier this month from Metro Bank, that it had completed its acquisition of peer-to-peer lender RateSetter, for an initial consideration of £2.5m.