"The acquisition of this high-quality loan portfolio supports our high-growth, organic business model as we track ever closer to our 2020 guidance."
The portfolio consists of approximately 92% buy-to-let mortgages, with the remainder being owner occupied. The portfolio has a weighted average seasoning of c.10 years and the weighted average loan to value is c.70%, with a current expected pay rate of c.1.6% principally linked to the Bank of England base rate.
The Bank says all lending in the portfolio has a similar credit risk profile to its current mortgage book.
Craig Donaldson, CEO of Metro Bank, said: “Our lending and deposit growth has gone from strength to strength and the acquisition of this high-quality loan portfolio supports our high-growth, organic business model as we track ever closer to our 2020 guidance. In particular the acquisition increases the Loan to Deposit ratio to c.78% (2020 guidance c.80%). The Portfolio complements our existing mortgage book and demonstrates our willingness and ability, helped by our strong deposit growth, to take advantage of opportunities as they arise.”
