Metro Bank opens with direct-only mortgages
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Metro Bank has opened today with a range of direct-only products including mortgages.
The bank opened this morning at 8am with its first branch in Holborn.
This will be followed by branches in Cromwell Road, Earls Court and then a further 10 stores in Greater London, with plans to open more than 200 branches over the next two years.
Metro is offering a range of current accounts, savings accounts – including Isas, fixed-term savings and young savers accounts – as well as credit cards, loans and mortgages.
Its mortgage range will include fixed and variable rate products available up to 80 per cent loan to value.
Its two-year variable rate is priced at 3.5 per cent, two-year fixed rate priced at 4 per cent and three-year fixed rate priced at 4.5 per cent up to 60 per cent LTV, and an extra 1 per cent added to the rate for LTVs over 60 per cent.
There is a mortgage arrangement fee of £500.
The bank will be offering extended opening hours with stores open seven days a week for retail and business customers.
Metro Bank chief executive officer Craig Donaldson says: “We know that UK banking customers are looking for a new, convenient way of banking with easy to understand products and that is what we will offer.”
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Readers' comments (1)
Martyn Sinclair | 29 Jul 2010 12:46 pm
I think direct mortgages are a great working tool for IFA's and clients to work together on a fee basis. Whilst the lenders may not deal with IFA's, meaning that the lenders are taking on all the compliance and PI risks - there is nothing to stop an IFA from providing administration and generic mortgage advice to the client to guide the client through the applciation process. i can not see that any mortgage company can refuse to permit a client to use an IFA. Its just that the IFA's role will need to be adjusted to confirm that no specific advice is needed. The client then has the choice to either go it alone and deal wth Metro by himself, or retain the service of the IFA to assist with the packaging a well as attend a meeting with Metro (if a meeting is part of the Metro underwriting process). I have highlighted to clients on many occassions direct offerings, esepcially with Nat West who also do not deal with IFA's. However, if the client asks for my help, esepcially regarding attending a meeting as the client adviosr, Nat West have had no issue and the client is very much aware that our time = Fees. Its all about ammending and changing the way we work with clients.
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