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Metro Bank tweaks BTL and interest-only criteria; Suffolk BS lowers rates – round-up

  • 18/06/2024
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Metro Bank tweaks BTL and interest-only criteria; Suffolk BS lowers rates – round-up
Metro Bank has made several buy-to-let (BTL) criteria enhancements, along with interest-only changes, following broker feedback.

Within its BTL criteria, Metro Bank has changed its affordability stress rate to the product interest rate when a five-year fixed rate is selected or for remortgage applications where there is no additional capital raising needed.

The BTL criteria around the number of BTL properties a customer can mortgage with Metro Bank have been upped to 10 or a maximum aggregate mortgage debt of £10, whichever binds first.

On the interest-only criteria side, the loan to value (LTV) has been increased to 80%. For a part and part without sale of subject property, the maximum LTV stays at 85%.

The lender has also removed the interest-only criteria of £600,000 minimum property value when using the sale of mortgage property as a repayment strategy.

The firm said that a minimum of £250,000 must be made up of equity, capital repayment or other interest-only repayment strategies. This is subject to LTV restrictions.

Charles Morley, director of mortgage distribution at Metro Bank, said: “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 homeowners and property investors across the country.”

In March, the lender increased the maximum loans available at different LTV tiers to support higher-earning customers.


Suffolk BS reduces expat holiday let and expat buy-to-let rates

Suffolk Building Society has decreased rates in its expat holiday let and expat BTL deals by up to 0.3% and extended the end dates.

The lender’s two-year fixed expat BTL rate at 80% LTV is priced at 5.29% and has been extended until 31 October 2026. It has a 3% completion fee.

Its two-year fixed expat holiday let rate at 80% LTV has been cut from 6.39% to 6.09%, and its expat BTL deal has fallen from 6.09% to 5.99%.

The end dates have also been extended to 31 October 2026.

Charlotte Grimshaw, head of intermediary relations and mortgage sales at Suffolk Building Society, said: “As expat and holiday let specialists, we’re continually monitoring the market and reviewing our proposition. We’re aware that it’s a challenging time at the moment, especially with rates and the interest coverage ratio [ICR] stress tests. By repricing our expat holiday let and expat buy-to-let products, we’re helping expat borrowers, particularly with rental coverage requirements.”

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