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Brokers doubt Metro Bank can deliver on buy to let

Mortgage brokers believe Metro Bank will not be able to compete with established names in the buy-to-let market due to its direct-only distribution strategy and small number of branches.

Last week, the bank, which was set up in July last year, revealed it is looking to move into the BTL sector in the third quarter of this year.

Yorkshire Building Society announced its intention to enter the BTL sector in October, followed by Abbey for Intermediaries in November. Skipton also said this week it is to return to the BTL market.

Mortgages for Business managing director David Whittaker says: “Metro Bank will not be able to compete with the other big players. Its pen- etration in the market will be so negligible that no one will notice.”

Whittaker says Metro Bank’s direct-only distribution strategy and the fact it only has four branches, all in London, mean it will not attract a large volume of customers.

He says: “If you live in Sussex, are you going to get on the train and go into London to get a buy-to-let mortgage from Metro Bank? It is not going to happen.”
Buy To Let Funding Services principal Geoff Laird says: “Metro Bank will try to attract new buy-to-let investors but most of these would normally use a broker so I do not think it will achieve much market penetration.”


Lloyds to get £15bn loan to help branch sale

JP Morgan and Citigroup are to provide a £15bn loan to Lloyds Banking Group as the two investment banks are appointed as joint advisers on the sale of 600 Lloyds branches. It emerged yesterday that new chief executive Antonio Horta-Osorio was keen to secure the funding to accelerate the sale of the branch network, which […]

The Isa silly season

Isas are available throughout the year but many investors leave it to the last moment. So this week I thought I would give some thought to the so-called Isa season, particularly at a time of stockmarket volatility caused by geopolitical problems in Libya, continuing debt problems in Europe and the tragedy of the Japanese earthquake. […]

NIESR says growth will be lower than OBR forecasts

Downward revisions of growth forecasts for the UK in last week’s Budget do not go far enough, according to the National Institute of Econ- omic and Social Research, which predicts growth will only reach 1.5 per cent in 2011/12. Figures released by the Office of Budget Responsibility last week downgraded the growth forecast for the […]

2016 Global Survey of Individual Investors: How is investor behaviour rewriting the job description for financial professionals?

Trapped between expectations for near double-digit returns and strong apprehensions about investing in persistently volatile markets, investors worldwide are of the opinion that professional financial advice is worth the fee. But even though they believe individuals who work with a financial professional are more likely to achieve their goals, investors have a clear vision of […]


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