Metro Bank offering 1.89% five-year fix with low arrangement fee
Metro Bank is offering one of the lowest five-year fixed rate mortgages with a low arrangement fee.
The 1.89% rate is fixed for five years. At the end of this period, it reverts to the lender's variable rate currently of 4.25%. The overall cost for comparison is 3.42% APRC representative.
The mortgage has a £499 arrangement fee, and it is available for purchases and remortgages.
Applicants will need a 50% deposit to qualify, although the rate increases by just 0.05% with a 40% deposit. Even with a 25% deposit, the price rises by 0.10%.
Early repayment charges apply for the fixed period, and the maximum loan is £2 million. Metro Bank will pay for the property valuation and cover the cost of the standard legal fees when you remortgage to the bank.
Aaron Strutt, product director at Trinity Financial, says: “Metro Bank has grown significantly over the last few years and consistently offers low five-year fixed rates.
“Trinity’s brokers have direct access to Metro’s mortgage underwriters to get applications agreed. Up to 20% of the outstanding balance can be overpaid each year without charge.”
Representative example: A capital and interest mortgage of £250,000 payable over 25 years, initially on a 1.89% fixed rate for five years and then on a variable rate of 4.25% for the remaining 23 years, would require 60 monthly repayments of £1,046.30 followed by 240 monthly repayments of £1,294.02. The total amount repayable would be £374,791.80 made up of the loan amount, plus interest (£123,342.80) and £499 (product fee), £50 (final repayment charge), £35 (completion fee). The overall cost for comparison is 3.42% APRC representative.
The actual rate available will depend on your circumstances. Please ask for a personalised mortgage illustration.
Call Trinity Financial on 020 7016 0790 to secure a Metro Bank mortgage
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