Metro Bank has launched into near prime residential mortgages to offer greater flexibility for borrowers who may be struggling to get a mortgage elsewhere.
Metro Bank has launched into near prime residential mortgages to offer greater flexibility for borrowers who may be struggling to get a mortgage elsewhere.
The bank suggests it is the sole high street lender offering near prime mortgages.
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, which revealed that 81% with adverse credit history agree that banks and other lenders aren't interested in helping people like them.
This rose to 90% amongst those aged 45-54.
In addition, 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.
Metro Bank’s near prime offering sits alongside its core range of residential mortgages, and enables borrowers with an imperfect credit history to purchase a new property or remortgage an existing property, at up to 80% LTV.
The new range will accept applicants with lower than average credit scores and those who’ve had unsatisfied county court judgements (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.
This follows Metro Bank reducing rates and increasing maximum loan sizes on its 85% and 90% LTV mortgages in February.
Charles Morley, director of mortgage distribution at Metro Bank, said: “It’s been an exciting few months for the mortgages team at Metro Bank.
"We’ve enhanced our criteria for BTL 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.”
Read more: Your guide to Metro for intermediaries
