"We’re thrilled to offer this latest near prime offering to customers who may have been overlooked by the vast majority of the market."
Metro Bank’s near prime offering sits alongside its core range of residential mortgages, and enables borrowers with an imperfect credit history to purchase or remortgage up to 80% LTV.
Two and five-year fixed rates start from 3.79% and the Bank will accept joint borrower sole proprietor applications and up to four borrowers on the same mortgage.
The new range will accept applicants with lower than average credit scores and those who’ve had unsatisfied CCJs and defaults, with no requirement for these to be repaid before the end of the loan term. The bank has also confirmed that it will accept unsatisfied defaults of up to £1,000, an increase from £500.
In a virtual event this morning, Metro Bank also confirmed that it will accept up to two missed mortgage or secured loan payments in the last 24 months.
Data from PWC suggests there could be up to 14 million people in the UK with less than perfect credit history.
Metro Bank has also conducted new research, in partnership with YouGov, which reveals that more than eight in 10 people (81%) with adverse credit history agree that banks and other lenders aren't interested in helping people like them. This rose to nine in 10 (90%) amongst those aged 45-54.
The research discovered that more than four in 10 (41%) of the respondents agree that they have been prevented from getting a mortgage or remortgage as a result of their poor credit history. A similar amount (43%) of people are worried that their mortgage lender options are limited and they won’t be able to access a mortgage or remortgage their current home, due to their credit history.
Charles Morley, director of mortgage distribution at Metro Bank, commented: “It’s been an exciting few months for the mortgages team at Metro Bank. We’ve enhanced our criteria for buy-to-let lending, cut rates on our higher LTV products and added significant expertise to our team with a number of new hires. This all serves a purpose: to grow into the UK’s number one specialist lender.
"We’re continuing to make tangible progress, and we’re thrilled to offer this latest near prime offering to customers who may have been overlooked by the vast majority of the market.”
