Metro Bank pulls out of consumer buy-to-let and let-to-buy mortgage market

by Aaron Strutt

Feb 08 2016

Metro Bank will stop accepting mortgage applications that fall under the Consumer Buy-to-let rules as part of The European Credit Directive.

If someone inherits a property and decides to rent it out, or they cannot sell their existing home (or chooses not to) and decides to rent it out, they will fall into the category of a consumer buy-to-let. 

If someone is already a landlord they are likely to be exempt from the new rules.

Aaron Strutt, product manager at Trinity Financial, says: “The vast majority of buy-to-let mortgages are not regulated by the Financial Conduct Authority and the new rules will only affect a small percentage of landlords. 

“Most of the lenders are taking the view that landlords take out a mortgage to make a profit from their investments and they want capital growth. This puts them firmly in the category of a buy-to-let investor and further away from an accidental landlord.”

All of Metro Banks consumer buy-to-let's and let-to-buy mortgages will need to be offered before the 21st March 2016. All applications missing this deadline will be unable to proceed to completion. 

For help to secure a buy-to-let mortgage, call Trinity on 020 7016 0790.