As the high street bank takes further steps into the specialist lending market, borrowers with lower than average credit scores and those with unsatisfied county court judgements (CCJ) and defaults will now be offered a mortgage.
Prior to the launch, Metro carried out a survey which revealed that 43 per cent of people who have experienced credit problems said they were worried that their mortgage lender options were limited and they would not be able to remortgage their current home, or get a new mortgage.
Interest rates for the deals range from 3.79 per cent to 4.19 per cent up to maximum LTV of 80 per cent and two and five-year fixed rates are available. The maximum loan size is £500,000 and the products can be used for a new purchase or a remortgage.
Self-employed borrowers are eligible to apply and all other standard criteria applies to the range, with the exception of interest-only mortgages which are not allowed.
Unsatisfied CCJs and defaults do not need to be repaid by the end of the loan term and the acceptable default limit has been lifted from £500 to £1,000. Satisfied CCJs are accepted up to £1,000 and restricted to £500 if they are unsatisified.
Charles Morley (pictured), 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.”