Metro Bank opens for business with direct deals

Metro Bank launched a range of direct mortgage deals last week as it opened its first branch in Holborn, London.

The bank is offering fixed and variable rate products up to 80% LTV. It has a two-year variable rate mortgage at 3.5%, a two-year fixed product at 4% and a three-year fixed rate at 4.5% up to 60% LTV.

For products above 60% LTV the bank says it will increase rates by 1%. For example, its 80% two-year fixed rate product has a rate of 5%. All mortgages have arrangement fees of £500.

Melanie Bien, director at Private Finance, says the bank is not offering market-leading deals.

She adds: “This is not surprising as it has just started trading but it’s a shame there’s nothing at higher LTVs.

“It’s great that there’s another bank around because we need lenders but these products are not going to set the world alight.”

Metro Bank is the first high street bank to launch for more than 100 years and will offer mortgages, current accounts, savings accounts, credit cards and loans.

Craig Donaldson, chief executive officer of Metro Bank, says: “We will stand out by providing great service, convenience, and value.”