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Metro Bank launches mortgages via brokers

Metro Bank is launching a pilot programme to offer mortgages via brokers for borrowers in London and the South East.

The initial pilot is being run in conjunction with John Charcol using a quota system to maintain service standards.

But the bank says it is in active discussions with a small number of other brokers with plans to extend availability over the next few months.

Its product range via brokers is the same as it currently offers direct – for properties under £1m products range from a two-year 60% LTV tracker product at 3.09% to a two-year 70%-80% LTV fixed rate at 3.65, all with a flat fee of £999.

But for properties over £1m it has today also launched a range of products at 70% LTV with rates starting at 3.39% and a product fee of 1%.

When it first launched in July 2010 it was the first new high street for over 100 years and offered mortgages, current accounts, savings accounts, credit cards and loans. Despite launching as direct-only, in 2010 Anthony Thomson, co-founder and chairman of Metro Bank, told Mortgage Strategy he would not rule out using mortgage brokers in the future. And in December 2011 Mortgage Strategy revealed that a Metro Bank had been contacting brokers, just a month after it was revealed it had completed just 100 mortgages.

Currently the bank has 12 stores and by the end of August hopes to have 100,000 customers.

Paul Marriott-Clarke, commercial director at Metro Bank, says the bank is now looking to build a long term intermediary business.

He says: “By partnering with a small number of intermediary partners, we ensure that we are able to give a consistently high level of service to all. Metro Bank offers common sense banking with the personal touch and our individual underwriting service means that we will consider cases which would typically fail the automated credit scorecards used by many lenders.”

Walter Avrili, managing director of John Charcol, says: “We are delighted that Metro Bank has chosen John Charcol to launch its intermediary proposition.  The addition of such a lender who is focused on unparalleled service and transparent products can only be a good thing for our clients and indeed all UK mortgage borrowers.

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  • Chris Gardner 3rd July 2012 at 2:42 pm

    And their logo and branding is god-awful.

  • Ketan Yadav - Avenue & Co Private Finance 2nd July 2012 at 10:10 am

    Welcome news for any new lender of course.

    HOWEVER: for e.g. Woolwich offer 2.99% to 60% LTV – with a fee of £1999 up to 65% LTV.
    Add to this max loan of £2m – and option to Fix – already Metro Banks products may at outset fail to hit the mark for competitiveness.

    Add their 1% fee on top – and its a non recommendation from any good broker. Metro wont be a threat to any major lender at these rates just yet!

  • Cynical Broker 30th June 2012 at 11:06 am

    If those who snipe did their homework, they’d know it’s the same as Woolwich Open Plan, yes you have to open the account but you don’t have to move all your banking over if you dont want to! Presumably those who are being negative won’t be using Metro Bank when it’s opened up to them ??

  • Shock horror 29th June 2012 at 11:08 pm

    How is this “good news” for brokers???

    £999 flat fee – when lenders have deals at £0 or £495

    Move banks – draconian

    Limited at 1 deal at 80% max – when higher LTV is needed through lack of deposits

    1% fee over £1m – £700k mortgage = £7,000 fee!

    Give me a lower fee, more choice and same old boring banking any day of the week…….and I’m sure my customer, in saving thousands in fees, having a choice of deals and not having to up-sticks and move all their direct debits for the privilege, will agree with me also

    WASTE OF TIME METRO

  • Tim 29th June 2012 at 2:08 pm

    As quoted on the JC Website: Free Valuation & Free Legal Service for remortgage. Metro Bank Account required

  • Sergio Almeida 29th June 2012 at 2:00 pm

    With all the negativity lately in financial services, the Eurozone crisis, lenders tightening criteria etc etc, this can only be good news for both brokers and customers.

  • Cynical Broker 29th June 2012 at 12:33 pm

    Even if you had to move banking to them (which you don’t)well done to John Charcol for finding a new bank prepared to lend, that hasn’t been tainted by umpteen scandals, nor has had to be bailed out by us good old taxpayers !

  • John 29th June 2012 at 11:11 am

    Take out a mortgage with them – they will insist that you move your bank account over as well.

  • SOX 29th June 2012 at 10:45 am

    I wonder if John Charcoal will be charging clients their usual 1% advice fee?