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Metro Bank reviews possible second charge market entry

High street lender Metro Bank has said it would not rule out the possibility of a move into the second charge lending space.

Speaking at the Legal and General Mortgage Club Live event in London today, Metro Bank director of business management, Richard Saulet, said the bank was “continuing to review” the possibility of diversifying into the specialist area.

Saulet was speaking as part of a panel discussion on the future of alternative lending and his remarks on a possible entry into the second charge space came in response to an audience question on the topic.

“It depends on an individual lender’s risk appetite”, said Saulet.

“We are continuing to review what we offer and if there was an opportunity in the second charge space we could make a move into it.

“Our business model is around listening to what the customer wants and if the demand is there we could quickly make a decision to do it. But if there isn’t we won’t go there.”

Joining Saulet on the panel were Precise Mortgages managing director Alan Cleary, BM Solutions head Phil Rickards and Bank of Ireland UK mortgages director Richard Rowntree.

Cleary, whose firm offers second charge lending, said earlier in the debate he wouldn’t expect larger lenders to be interested in a move into second charge because “it’s too small – it’s a sub-£1bn market; the volume isn’t there.”

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