Metro Bank has slashed interest rates on its 90% loan-to-value (LTV) mortgages offering better deals for borrowers with low deposits.
The lender said it was introducing ‘significant’ rate reductions of 0.4% on its 90% LTV five-year fixed rate mortgages. This means customers who need to borrow enough to pay for 90% of their property’s value can benefit from the deal.
For customers looking for a new mortgage, the reduced rate is now 3.59%, whilst those looking to remortgage will also benefit from a reduced rate of 3.64%.
For several months, the bank was one of only a few lenders in the market offering 90% LTV residential mortgages, at a time when most lenders had withdrawn their higher LTV products. Recently, however, more lenders have re-entered this space in the market creating more options for borrowers.
Metro Bank has been keen to support borrowers with more specialist mortgage requirements since November 2020, when it enhanced its criteria for buy-to-let customers to enable more people to apply.
The bank is also in the process of expanding its mortgages team and hiring a number of experienced professionals, setting its sights on becoming the UK’s number one specialist lender.
Charles Morley, director of mortgage distribution at Metro Bank, said: “Right now there are plenty of 2borrowers with smaller deposits looking for a mortgage.
“Metro Bank is proud to continue to support these customers, as they move to a new home or look to jump on the housing ladder for the first time.
“We have really exciting plans to improve our specialist mortgages range in 2021 and the new products that you’ll see will be as individual as our customers are.”
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