Metro Bank, the rapidly growing High Street challenger, has expanded its buy-to-let mortgage offering with the purchase of a £600m loan portfolio.
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Metro Bank plans for rapid UK growth
The bank bought the loans from US private equity firm Cerberus. It is thought that the portfolio consists of around 92 per cent buy-to-let mortgages, with the remainder accounted for by owner-occupier loans.
The purchase is the latest move in Metro Bank’s ambitious UK growth plans, which have seen the bank expand its presence rapidly since launching in 2010.
According to Metro, the Cerberus loans increase the bank’s average LTV ratio to around 78 per cent, bringing it roughly in line with its goals for 2020.
Metro chief executive Craig Donaldson said: “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.”
More buy-to-let mortgage choice
Despite an increasingly challenging tax and legislative environment, landlords are currently enjoying low mortgage rates across the board.
Fixed deals had fallen every month for a full year until April, when a survey from Mortgages for Business found that that they had ticked up slightly. Three-year fixes touched a low of 3.53 per cent in March, according to the figures.
Landlords are also benefiting from a broader choice of loans, especially those aimed at buy-to-let properties operated through limited companies. As of last month, there are now more than 300 mortgages available for landlords who opt for a limited company structure.