Metro Bank Unveils Limited Company Buy-to-Let Mortgages

Today, Metro Bank has launched into Limited Company Buy to Let Mortgages. A milestone, as we previously reported UK's Largest Lenders Avoid Buy-to-Let Mortgages for Limited Companies.

In comparison

If we compare a 75% LTV LTD Company BTL Mortgage on £200,000 purchase price borrowing £150,000, we find Metro Bank entering with Market-Leading products.

2-Year Fixed

• 👑Metro Bank with a True Cost of £23,870. (at 5.39% paying £911 per month with £1,999 fee)
• Leeds Building Society with a True Cost of £24,060. (at 6.39%, paying £1,002 per month with £0 fee)
• The Mortgage Works with a True Cost of £24,171. (at 6.49%, paying £1,011 per month with £0 fee)

5-Year Fixed

• 👑Metro Bank with a True Cost of £56,143
• Kensington Mortgages with a True Cost of £57,586
• Nottingham Building Society with a True Cost of £57,618

Landlords increased their use of LTD Company BTL in 2016 due to new regulations, which made the rental affordability stress test more challenging for personal borrowers. Metro Bank is taking advantage of this regulation by offering a stress test rate of 125% for higher rate taxpayers using an LTD Company BTL (which would be 145% in personal name).

Metro Bank - Limited Company Buy to Let highlights

• Up to 75% Loan-to-Value (LTV).
• No Minimum Income.
• 125% of the mortgage stress test, calculated at standard Buy to Let stress rates.
• Up to four Directors/Shareholders accepted.
• Portfolio Landlord accepted up to 10 Properties in total.
• Portfolio Landlord Background Property Test at 125%
• All Directors must have been resident in the UK for the last 3 years.