Looking to buy a home or invest in property? Metro Bank just announced some big changes to their mortgage rules that could make things easier for you. Here’s what you need to know:

Interest Only Mortgages – More Flexibility

If you’re considering an interest only mortgage, Metro Bank has made some changes. They’ve upped the loan-to-value (LTV) ratio to 80%, which means you can borrow a higher percentage of the property’s value. This could mean you need a smaller deposit.

They’ve also removed the minimum property value requirement for those who plan to repay their mortgage by selling the property. This is great news for anyone looking to buy a more expensive property or who plans to move within a few years.

However, there’s a catch: You’ll need to have at least £250,000 in equity, capital repayment, or other interest-only repayment strategies lined up.

Buy-to-Let Mortgages – More Options and Less Stress

Landlords, Metro Bank has some good news for you too. They’ve made their buy-to-let mortgages more flexible.

Now, when you choose a five-year fixed rate or are remortgaging without additional capital, the affordability stress rate will match the product interest rate. This means you’ll have to pass a lower affordability test, making it easier to get approved for a loan.

You can also now mortgage up to 10 properties with Metro Bank. They’ve increased the maximum number of properties you can own with a mortgage from them to 10, with a total maximum mortgage debt of £10 million.

They’ve also updated their income coverage ratios, which means you might find it easier to qualify for a loan based on your income.

What Does This Mean for You?

These changes could mean it’s easier to get a mortgage from Metro Bank, whether you’re buying your first home or expanding your property portfolio. If you’re considering buying or investing in property, it might be a good time to talk to a mortgage advisor and see if these changes could benefit you.