Metro Bank to expand into consumer buy-to-let

Houses-House-Money-Notes-10-700.png

Metro Bank is expanding into consumer buy-to-let, according to head of mortgage distribution Charles Morley.

The lender, which already writes standard buy-to-let, will begin taking CBTL applications from tomorrow.

Morley says the lender is making the move following feedback from brokers.

He says: “It will service a niche for us and fulfil a role for the broker community and our customers.

“We have picked up on demand in London and the South East in particular.”

Morley says the lender is making the move now because it sees strong continuing interest in buy-to-let.

The Metro Bank distribution head said he is bullish about the future health of the sector, despite it taking recent blows from Government tax changes and regulatory shake-ups.

He says: “There will always be a demand for buy-to-let. I think it will continue to play a part in the UK mortgage market, and we don’t think there will be a change in landlords wanting one to three properties.”

“I think if you look at some of the projections the market will be down 20 per cent this year. But then I think the market will develop.”

The product will be sold through brokers and direct to consumers.

Earlier this month Metro Bank bolstered its buy-to-let business by buying a £596.7m book of UK mortgages from Cerberus European Residential Holdings.

The portfolio is around 92 per cent buy-to-let, with the rest being owner-occupier loans.