Metro bank and restrictive covenants

ric1982

Hi,

Metro bank's lending criteria seems to suggest that any type of restrictive covenants are not acceptable in mortgage application. From my experience restrictive covenants are very common in UK. Seems a bit extreme to blindly disallow all covenants. I believe some covenants are good for the property/land. For e.g. not been able to brew wine or beer for business (though I would not mind consuming some on the premises. :beer:)

https://www.metrobankonline.co.uk/globalassets/documents/customer_documents/intermediaries/mortgage-lending-criteria-06.17.pdf

Is this done case by case basis or just blindly?

Thanks,

davidmcn

I doubt they literally mean no restrictive covenants, probably just unusually onerous ones.

ACG

Metro are a relatively new lender.
When lenders come to market they tend to have black and white criteria that gets altered over time depending on feedback from brokers and applicants.

I have no idea about your enquiry personally, but if you are unsure best to check with the lender (or ask your broker to if you are using one).