Legal & General Mortgage Club and L&G Network have signed a deal with Metro Bank to distribute its mortgage products as part of the lender’s ongoing strategy to target the intermediary market.
Metro Bank became the first wholly new bank to open in the UK in more than 100 years in June 2010 and initially its focus was on branch-based distribution, with the future use of intermediaries not ruled out.
In June, Metro Bank entered into a pilot scheme with John Charcol to distribute through intermediaries and subsequently partnered with Coreco, Charles Cameron and Springtide Capital in November.
Existing intermediary partners receive a 0.35 per cent proc fee regardless of the size of the loan. Metro Bank says proc fees for L&G brokers will vary, but refused to disclose any details.
While Metro ensures there is no dual pricing, clients must open a current account with each mortgage.
Commercial director Richard Saulet says the deal with L&G Mortgage Club shows the bank is “dedicated to building a long-term successful intermediary partnership”.
L&G Network head of mortgage products Martyn Smith says: “We are excited to be partnered with Metro Bank at a time when its products could have a positive impact on market growth.”
Coreco director Andrew Montlake says: “It is good news to see a lender like Metro extending its reach. L&G is very well respected and it is good move for both parties.”