Your guide to Metro for intermediaries

Do you want to work with a mortgage lender that can help you level up in your career? Check out Metro for intermediaries. Read on to know more about them

By Kath Villamayor

06 Nov 2024

Contents

Getting to know Metro for intermediaries
Eligibility criteria for applicants of Metro for intermediaries
Products and services offered by Metro for intermediaries
Mortgage changes allowed by Metro for intermediaries
Applying for Metro for intermediaries’ mortgages for your clients

Mortgage brokers, also known as intermediaries, assist people who want to start their journey towards homeownership in the United Kingdom. An intermediary’s main purpose is to act as a connector between potential borrowers and lending institutions that offer home loan products. To give the best service for clients, intermediaries need to work closely with lenders that are committed to helping them succeed. Some of these lenders can be retail banks, credit unions, direct lenders, and other mortgage providers.

To excel in their career, Mortgage brokers should partner with mortgage companies that have intermediary-only platforms—just like Metro for intermediaries. This banking giant has designated an online portal that caters only to intermediaries. Through their website, Metro Bank helps mortgage brokers look for the ideal funding solutions for their clients and prospects.

Ready to get to know more about this lender?

In this article, Mortgage Introducer will help you learn about Metro Bank for intermediaries and shed light on their mortgage products. We will also take a closer look at their highly effective mortgage processes as well as their eligibility criteria. Want to know if Metro for intermediaries is the mortgage lender for you and your clients? Read on to find out.

Getting to know Metro for intermediaries

Metro Bank PLC is a retail and commercial bank registered in England and Wales. It is authorised by the Prudential Regulation Authority (PRA). Metro Bank is regulated by both the PRA and the Financial Conduct Authority (FCA). Metro Bank PLC is an independent UK bank and is not affiliated with any other bank or organisation outside the country.

Metro Bank is the trading name of Metro Bank PLC. They have an online portal which can be used by Metro Bank’s partner intermediaries. This mortgage lender has applied a broker-centric approach to their operations. They assist UK-based mortgage brokers by offering these services:

packaging guide and affordability calculator
mortgage application documents
free online webinars and Feature of the Week articles
FAQs page and valuation fee scale

With these tools and support for mortgage brokers, the UK’s leading mortgage brokerage firms will have extra leverage if they partner with lenders like Metro for intermediaries. You might want to check out some of these brokerage firms on our list of top mortgage intermediaries in the UK.

Eligibility criteria for applicants of Metro for intermediaries

Here are the eligibility criteria for mortgage brokers who want to apply for a home loan with Metro for intermediaries on behalf of their clients:

age
address history
residency status
investment income
benefit income

Read below to further understand Metro for intermediaries’ requirements:

1. Age

Metro Bank sets the minimum age requirement at 18 years old and the maximum at 80 years old. For their professional range, the age requirement is 21 years old.

2. Address history

Your clients must have lived in the UK for at least three years if they want to apply for a mortgage with Metro for intermediaries.

3. Residency status

Metro for intermediaries will accept property loan applications for residents with permanent rights to reside in the UK. Those with settled or pre-settled status under the EU settlement scheme will also be accepted.

4. Investment Income

Income from your clients’ investments will be accepted by Metro for intermediaries at 5% of fund value. This excludes highly volatile funds such as:

currency exchange
single stock
venture capital trusts

Metro Bank does not consider standalone cash savings as investment income.

5. Benefit income

Metro for intermediaries will only accept Disability Living Allowance or Personal Independence Payment as benefit income. However, it must be guaranteed for the life of the mortgage and awarded to a person named on the mortgage. Other benefits will not be accepted.

Self-employed applicants

For home loan borrowers who want to be classed as self-employed applicants, they must own 25% or more of a limited company. If not, Metro for intermediaries will not categorise them as such. Sole traders and limited company shareholders are also accepted. The same is true for partners.

For stock traders, Metro Bank requires two years of trading with a minimum of two years' worth of finalised figures.

Products and services offered by Metro for intermediaries

Now that you know some of the requirements set by Metro for intermediaries for their mortgage applicants, you might want to look at the various property loan options that they have. You can select the best one that suits your clients’ personal goals, circumstances, and financial capabilities.

Buy to Let mortgage products

Like any other mortgage lender in the UK, Metro Bank for intermediaries offers Buy to Let mortgage products. These are:

Core mortgages
New Build mortgages
Limited Company Buy to Let mortgages
Existing Customers and Rate Switching products

Let us go in-depth with each property loan selection under Metro for intermediaries’ Buy to Let mortgage:

1. Core mortgages

Metro Bank’s Core mortgages have a maximum LTV ratio of 75% and can accommodate up to four mortgage applicants in one application. There is no minimum income for this Buy to Let home loan, but your clients will be subjected to rental void plausibility checks. Top slicing can also be considered from earned income. However, the minimum income requirements set by Metro Bank will apply.

As for the maximum age, the oldest applicant should not be older than 85 years old and they will be the basis of the mortgage term.

If you have clients who are portfolio landlords, Metro for intermediaries will accept a maximum of 10 Buy to Let mortgaged properties. The maximum loan amount is £10 million.

Here are some perks to Metro Bank’s core mortgages:

personal service: you can enjoy one single point of contact through your clients’ mortgage process
individual case underwriting: you can be sure that Metro for intermediaries will consider the personal circumstances of your clients

2. New Build mortgages

Like core mortgages, Metro Bank’s New Build mortgages have a maximum LTV ratio of 75%. These are valid for nine months and are offered to both New Build houses and flats. Metro for intermediaries does not have a maximum story height for these two property types.

Builder Incentives are accepted in New Build mortgage applications for up to 5% of the purchase price. This can include:

builders gifted deposit
white goods
carpets and curtains
cashback
legal fees
contribution towards stamp duty

If you have clients who are interested in applying for Metro Bank’s New Build mortgages, make sure that you organise their cases well at submission. Metro for intermediaries will instruct valuation once the underwriting process begins.

More on New Build mortgages in this clip:

Do you know specialising as a New Build mortgage broker can be beneficial? Find out why in this article.

3. Limited Company Buy to Let mortgages

Metro Bank’s Limited Company Buy to Let mortgage options also offers a maximum LTV ratio of 75%. This includes 125% of the mortgage interest amount calculated at their standard Buy to Let stress rates. A maximum of four directors or shareholders can be accepted. However, they must be the same people and have 100% shareholding.

Metro for intermediaries does not have a minimum income criterion for this type of loan but they will conduct rental void plausibility checks on your clients. At least one director should be earning aside from rental income.

4. Existing Customers and Rate Switching products

If you have clients who already have existing mortgages with Metro for intermediaries, be sure to use their online portal. This is designed specifically to help your clients switch mortgage deals with ease.

Advantages of Rate Switching online

Clients who switch online through Metro Bank for intermediaries’ website will enjoy these two perks:

pay no legal or valuation fees
have options to switch up to three months early; this will not incur an early repayment charge

If your client chooses a mortgage rate that they would like to switch to, you must inform Metro Bank within 10 working days before their current mortgage rate ends.

Mortgage changes allowed by Metro for intermediaries

After securing a mortgage with Metro for intermediaries, your clients can still make some changes with their home loans. Some of these changes allowed by Metro Bank are:

Further Advances
change of repayment type
change of term
mid-term rate switches
porting of the loan; can be substitution of property

Metro Bank also allows transfer of equity which can be substitution, removal or addition of a borrower. See how transfer of equity works in this video:

Applying for Metro for intermediaries’ mortgages for your clients

Applying for Metro for intermediaries’ mortgages can be an advantage not just for your clients but also for your career. Metro Bank is committed to providing the best service possible. As such, forming a close connection with this mortgage lender is a great way to achieve new heights—especially if you are just starting out as an intermediary.

You’ve also learned that Metro Bank has many home loan options, both for the most common to the most unique cases. So, if you have clients with varying circumstances, you can help them achieve their homeownership goals if you choose to work with Metro for intermediaries.

These, among other benefits like their broker tools, are the reasons why choosing Metro for intermediaries’ mortgages for your clients is a good idea. If the possibility of working with one of the best women mortgage leaders in the UK excites you, then Metro Bank is for you.

But if you want to expand your options, there are other mortgage lenders that have intermediary-only platforms like Metro Bank. We have compiled a list of other guides that you might want to look at:

Does this guide to Metro for intermediaries help you decide if this mortgage lender is the right one for you and your clients? Share your thoughts in the comments below.

Your guide to Metro for intermediaries

Getting to know Metro for intermediaries