Metro Bank has sold just 100 mortgages since launch
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New lender Metro Bank has sold just 100 mortgages in the 15 months since it launched, according to reports.
The lender launched to fanfare last year with an extravagant opening at its central London branch where it pledged to challenge the big banks.
But it has made little impact in the UK residential mortgage market despite launching into buy-to-let this year.
The bank has invested in opening branches in London with a focus on service over price such as its extended opening hours from 8am to 8pm on weekdays.
It only lends up to a maximum of 80% LTV with it deals at that level costing 3.95% for a two-year fix and 4.95% for a five-year fix.
The bank is a direct-only lender but last year Anthony Thomson, co-founder and chairman of Metro Bank, told Mortgage Strategy he would not rule out using mortgage brokers in the future.
The FT says Metro has been focussed on building up its retail deposit base in order to make loans.
Craig Donaldson, chief executive of Metro Bank, says he is incredibly pleased with the progress.
He says: “As a new bank we have lent to thousands of personal and business customers. We also now have over 40,000 accounts and grow at 1,000 a week.”
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Readers' comments (6)
BARRY DAVIS | 11 Nov 2011 2:28 pm
I'M CONFUSED
Can anyone help
Head line says 'Metro Bank has sold just 100 mortgages since launch'
Lender says 'Craig Donaldson, chief executive of Metro Bank, says he is incredibly pleased with the progress.
He says: “As a new bank we have lent to thousands of personal and business customers. We also now have over 40,000 accounts and grow at 1,000 a week.”
So is it 100 or 1000's?????
think some clarity needed here
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Jon T | 11 Nov 2011 2:38 pm
ONLY up to 80% LTV, with 3.95% 2 year and 4.95% 3 year fixes? On the current market, these are highly competitive deals!
Unless they have some of the tightest lending criteria in the marketplace, or their fees are orders of magnitude larger than those charged by BM or TMW, these mortgage products should be flying off the shelves.
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puffy daddy | 11 Nov 2011 3:29 pm
Barry - I can only presume that the lender is referring to personal/unsecured loans?
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Richard Wharram | 11 Nov 2011 3:35 pm
Clearly 100 mortgage accounts Barry and 1,000's of bank accounts!
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Northern Monkey | 11 Nov 2011 3:41 pm
Lending is more than just mortgages!! Have your heard of personal loans?
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Anonymous | 11 Nov 2011 3:47 pm
RE: Barry Davis
I am assuming that the lending Craig Donaldson is referring to is unsecured lending to businesses and individuals rather than secured lending in the mortgage market.
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