Metro Bank enhances interest-only and buy-to-let criteria

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%, while part-and-part without the sale of subject property remains at 85% LTV.

The minimum property value when using sale of mortgage property as a repayment strategy has also been removed. However, a minimum of £250,000 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 to 10 (up to a maximum aggregate mortgage debt of £10 million) alongside revised income coverage ratios (ICRs).

Charles Morley, director of mortgage distribution at Metro Bank, commented: “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.”