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Boost for first-time buyers as lenders relaunch 90% mortgages

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Written by: Lana Clements
16/07/2020
Metro Bank and Platform return to lending to borrowers with a 10% deposit
Boost for first-time buyers as lenders relaunch 90% mortgages

Metro Bank has reintroduced mortgages at 85 and 90 per cent of the property’s value, after withdrawing the deals as the UK went into lockdown.

The products are fixed for five years with interest rates of 2.99 per cent at 85 per cent loan-to-value (LTV), and 3.29 per cent at 90 per cent LTV.

Both mortgages have a £999 product fee.

The deals are available on purchase or pound for pound remortgages – applications for further advances over 80 per cent LTV are not being accepted.

The maximum property value is £600,000 and all loans are subject to a physical valuation.

Customer who are furloughed, or have recently been furloughed, will not be accepted.

Charles Morley, director of mortgage distribution at Metro Bank, said: “We’re pleased to reintroduce these higher LTV rates on our five-year fixed rate mortgages.

“As physical valuations have returned – and our market gradually begins to reopen – we wanted to give greater choice to customers who can afford to borrow more, as well as those that are keen to step onto the housing ladder for the first time.”

Platform changes

Platform has also re-launched mortgages and changed rates across a number of ranges at up to 90 per cent LTV.

The five-year fixed rate product at 90 per cent LTV with zero fee has been re-introduced with a rate increase of 0.30 per cent.

And the lender is again offering two and five-year fixes, with a £999 product fee, up to 85 per cent LTV.

The lender has also increased rates on selected fixed rates by up to 0.20 per cent.

For product switches, rates have been increased up to 0.15 per cent between at up to 85 per cent LTV and by 0.50 per cent on all 90 per cent LTV fixed switches.

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