The new product offers a maximum loan-to-value of 75%
Aiming to enhance its position in the specialist lending market, Metro Bank has introduced its first limited company buy-to-let product.
The new product offers a maximum loan-to-value (LTV) of 75%, with mortgage interest calculated at standard buy-to-let stress rates and requiring 125% coverage.
The limited company must be a non-trading special purpose vehicle (SPV) solely holding residential property. Up to four directors or shareholders are accepted, who must be the same individuals with 100% shareholding. No minimum income is required, but at least one director must have a non-rental income.
Portfolio landlords are accepted, with up to 10 properties at Metro Bank, or a maximum of 10 properties in total, under £10 million aggregated debt. The maximum age for applicants is 85, with the mortgage term based on the oldest applicant.
The lender pointed out that owning property through a limited company can offer tax advantages compared to individual ownership, giving landlords more flexibility to manage and expand their portfolios.
“Owning a property portfolio within a limited company rather than as an individual can bring a number of benefits,” said Charles Morley (pictured), director of mortgage distribution at Metro Bank. While limited company buy-to-let is already an established market, we see the potential for it to grow even further.
“Launching a limited company buy-to-let product has been on our agenda for some time, and we’re really excited for it to go live today as we continue our journey to becoming the number one specialist lender on the high street.”
Founded in 2010, Metro Bank became the first new high street lender to open in Britain in over a century. With over 70 branches across the country, it serves approximately 2.7 million customers, offering current accounts, business accounts, personal loans, and insurance and mortgage products.
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