Metro Bank increases standard buy-to-let limit to £2 million
Metro Bank for Intermediaries has raised its standard buy-to-let mortgage loan size in a move designed to attract wealthier landlords.
The banks standard mortgage loan size has increased from £1 million to £2 million although larger loans are available.
Over the last few years Metro Bank has been one of the leading lenders for large buy-to-let mortgages, often because many of the other banks and building societies cap their maximum mortgages at £1 million.
Applications from first-time landlords (not first-time buyers) are accepted and properties above commercial premises will also be considered.
Metro Bank’s most competitively priced buy-to-let mortgage is a two-year fix rate at 2.89%.
After the fixed period the mortgage will revert to the lender’s standard variable rate, which is currently 4.5%. The overall cost for comparison is also 4.5% APR.
In order to qualify for Metro’s rate, borrowers will need a 35% deposit and there is a £1,999 arrangement fee. Up to 10% of the initial amount borrowed can be overpaid each year and early repayment charges apply for two years.
The rental cover required for the property is 125% of the mortgage payment, assessed at a rate of 5.50%.
Aaron Strutt, product manager at Trinity Financial, says: “If you are looking for buy-to-let mortgage below £1 million then there are more competitively priced mortgages available through the high street lenders.
“If you require a buy-to-let mortgage over £1 million then Metro Bank is a good option, especially as it has a selection of large loan two-year fixes and trackers, plus three and five-year fixes. In additional, the bank does not have a specific minimum qualification income although this is a subject to a rental void plausibility check.”
For help to secure a buy-to-let mortgage call Trinity on 020 7016 0790.