Metro Bank offering £1.5 million plus mortgages – with £4,999 arrangement fees

by Aaron Strutt

Nov 10 2015

Metro Bank is offering a range of fixed and tracker mortgages with arrangement fees varying between £999 and £4,999.

If you are looking to secure a mortgage below £1.5 million, Metro’s arrangement fees start from £999. Once the mortgage goes over £1.5 million the fee rises to £4,999.

Metro Bank’s lowest rate for mortgages between £1.5 million and £3 million is a two-year tracker rate at 2.19%. It tracks the Bank of England base rate plus a margin of 1.69%.

After the initial tracker rate period, the mortgage will revert to the lender’s standard variable rate, which is currently 4%. The overall cost for comparison is 3.8% APR.

There is a £4,999 arrangement fee and borrowers will require a 30% deposit to qualify.

Aaron Strutt, product manager at Trinity Financial, says: “More of the lenders are looking to provide larger mortgage loans and there is a real choice of rates and arrangement fees.

“Metro’s fees might be high but the lender has some unusual lending criteria. The bank offers interest-only up to 70% loan-to-value, providing applicants have a credible and provable repayment strategy.

“They provide favourable terms to limited company directors and the affordability model for loans above £500,000 is attractive.”

For help to secure a larger mortgage loan, call Trinity on 020 7016 0790.