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Metro Bank launches up to 100% mortgage deal for eligible first-timers

The new product follows Lloyds’ debut of a first-time buyer mortgage with a minimum £5,000 deposit and a five-year fixed rate of 5.89%.

Reported · Written up by our desk · Mortgages

Guardian Business reports that Metro Bank has launched a first-time buyer mortgage that can allow eligible borrowers to take out loans up to 100% of a property’s value.

The article says that 100% home loans had become less common after the 2008 financial crisis, but they are returning as banks and building societies relax affordability rules and develop new mortgage structures.

It adds that Lloyds recently promoted a separate first-time buyer mortgage requiring a minimum deposit of £5,000, which equates to a maximum loan-to-value of just over 98%, and is a five-year fixed deal priced at 5.89% at the time of writing.

The piece also notes that Lloyds’ offer is limited to homes worth up to £300,000, and cites Santander as having a similar arrangement that enables borrowing up to 98% of a property’s value, with a five-year fixed rate shown as 5.49% in the article.

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