Metro Bank has cut the cost of its five-year fixed-rate mortgages by up to 30 basis points.
The biggest reductions are on its buy-to-let range, where a five-year fix at 65 per cent LTV has been reduced from 2.79 per cent to 2.49 per cent.
Metro Bank has also introduced a new rate of 2.39 per cent for loans up to 60 per cent LTV.
Metro Bank has made similar reductions to other buy-to-let deals, but only at selected LTVs. This includes it two-and three-year fixed rate deals, plus its two-year tracker. All are part of its core buy-to-let range.
For example, those opting for a three-year fix at 75 per cent LTV will now pay 2.49 per cent – a reduction of 30 basis points.
On its residential range, rates have had a more modest cut, with the reductions of up to 0.1 per cent.
However, Metro Bank has again introduced a new 60 per cent LTV tier on its residential five-year fix. At this new tier borrowers pay 1.79 per cent.
While these rates remain competitive, information from Moneyfacts shows they are not market-leading deals, on either the residential or buy-to-let deals.
Moneyfacts’ best buy tables show borrowers can get a rate of 1.65 per cent on a residential five-year fix from the Principality BS, and 1.76 per cent from HSBC. Both deals are at 60 per cent LTV.
Metro Bank chief executive Craig Donaldson says that bank offers “competitive rates and fast turnaround times” combined with additional benefits, such as allowing 20 per cent overpayments for residential customers, and top-slicing for buy-to-let borrowers.
Moneyfacts spokeswoman Rachel Springall says: “It’s great to see Metro Bank launching competitive fixed rates, but with an abundance of deals on the market it’s important to look at all other costs outside the headline interest rate.”