Metro Bank Expands Near Prime Mortgage Options: Better Choice for UK Borrowers with Imperfect Credit

Metro Bank has enhanced its Near Prime and Core residential mortgage ranges, now offering improved lending options for applicants with less-than-perfect credit histories.

This update gives hope to many UK homeowners and prospective buyers who may have previously struggled to access competitive mortgage deals due to historic credit issues.

What’s New in Metro Bank’s Near Prime Range?

The refreshed Near Prime proposition from Metro Bank is designed specifically for borrowers who don’t meet mainstream criteria due to past credit blips. Here’s what’s new:

• Loan-to-Value (LTV) up to 85%: Borrowers can now access higher LTVs, making it easier to buy with a smaller deposit or release more equity when remortgaging.
• Flexible Repayment Methods: Interest only and ‘part and part’ repayment options are now available, giving more choice in how you manage your mortgage payments.
• Maximum Loan Size Increased: The maximum loan amount for Near Prime mortgages has risen to £750,000.

Core & Near Prime Criteria Improvements

Metro Bank has also introduced positive changes to both their Core and Near Prime ranges, making them even more accessible:

• Higher Limits for CCJs and Defaults: Applicants with more significant county court judgments (CCJs) or default histories can now be considered.
• Utility and Communication Defaults Ignored: Missed payments on utilities (e.g., gas, electric, phone bills) won’t count against you in the application process.
• No Cap on Unsecured Arrears (if clear last 3 months): As long as you have no unsecured arrears in the last three months, previous arrears aren’t restricted, subject to the maximum 85% LTV for credit-impaired customers (as per FCA definition).

All applications remain subject to standard credit checks and scoring, but these updates mean more applicants may now qualify.

Who Benefits from Metro Bank’s Near Prime Offering?

• First-time buyers with minor historic credit issues or non-traditional credit backgrounds.
• Homeowners wanting to remortgage after past credit events but with recent payment stability.
• Home movers rebuilding their credit profile but needing higher LTV or flexible repayment types.

These updates also offer vital relief for those whose credit challenges relate to temporary circumstances or ‘life events,’ rather than ongoing financial distress.

Unique Features & Flexibility

• Repayment Flexibility: Choose between capital repayment, interest only, or a mix—tailoring payments to your needs.
• Improved Tolerance of Credit Issues: By ignoring some types of defaults and raising limits for CCJs/defaults, Metro Bank welcomes a broader range of applicants.
• Larger Loans Available: With borrowing up to £750,000, the lender supports not just smaller purchases but also higher-value property transactions.

Why Choose Metro Bank?

• Specialist Lending Expertise: As Metro Bank transitions towards becoming a leading specialist lender, its updated near prime and core criteria show a proactive approach to supporting credit-impaired and underserved customer segments.
• Competitive Flexibility: Few high street lenders offer such generous LTV and credit tolerance on adverse mortgages, especially with interest only and part and part as options.
• Personalised Service: Metro Bank’s dedicated local teams and online case discussions ensure a supportive process for those with unique needs.

Next Steps: Speak to an Adviser

If you’ve previously been declined due to credit issues—or you simply want to explore your mortgage or remortgage options—a mortgage adviser can help you assess your eligibility and find suitable rates from Metro Bank and other UK mortgage lenders. Contact our expert team today for tailored, confidential advice backed by full-market access.

Discover how Metro Bank’s new criteria could help you secure the right mortgage for your circumstances.

FAQs

• Who qualifies for Metro Bank’s Near Prime mortgages?
  Applicants with past credit blips, including CCJs, defaults, or previous arrears (as long as recent payments are up to date), may qualify—subject to standard credit checks and maximum 85% LTV.
• Can I get a near prime mortgage if I have missed utility bill payments?
  Yes—Metro Bank now ignores utility and communication defaults, making acceptance more likely if these are your only credit issues.
• What is the maximum loan I can get?
  Metro Bank’s Near Prime mortgages now allow loans up to £750,000, subject to meeting the bank’s lending criteria.
• Does this update affect first-time buyers?
  Yes, first-time buyers with previous credit issues may find it easier to qualify under the refreshed criteria and higher LTV options.
• How do I apply or check my eligibility?
  Speak with one of our mortgage advisers for a personalised assessment and help with your application—they’ll guide you through every step.