Metro Bank increases its five-year fix

by Aaron Strutt

Jul 30 2014

Metro Bank has increased its leading five-year fixed rate mortgage by 0.3%. The lender was offering one of the lowest five-year fixes and it undercut nearly all of the other banks and building societies in the market.

Nationwide for Intermediaries’ has the leading five-year fix at 3.19%. It is available to borrowers with a 40% deposit and it has a £999 arrangement fee. The APR is 4.1% and after the fixed rate period the mortgage reverts to the lender’s standard variable rate, currently 3.99%.

Aaron Strutt, product manager at Trinity Financial, says: “If you are looking to stay in your property for the long term it often makes sense to lock into a five-year deal. One of the benefits is that borrowers won’t need to apply for another mortgage for quite some time.

“Some of the banks are asking their existing customers to prove their income again once their deal comes to an end. So, if your financial situation changes and you do not meet their new lending criteria you may be forced to stay on the high standard variable rate.”

If you would like help to secure a five-year fixed rate mortgage, call Trinity Financial on 020 7016 0790.