Why are Metrobank's mortgage rates so high?!

lassfarfromhome

So, I took out a five year fix with Metrobank at 2.44%.  This is due to expire in May this year so I was looking at the rates I can get if I switch rates and stay with them for another fixed term.  Looks like 2.59% is the best I'll be able to get.  Seems mad considering that I took out the 5 year fix before the referendum ie before rates went down again from their already low rate.  What's going on?  Do they not want people to take out mortgages with them.  I've got less than £20K to go so it's not really worth remortgaging with anyone else, I don't think.

Thrugelmir

What are you benchmarking the 2.59% rate against ?  Is the product fee free. 

lassfarfromhome

Thrugelmir said:

What are you benchmarking the 2.59% rate against ?  Is the product fee free. 

Ah, that's a good point.  Yes it is fee free.  It would be a straight rate switch so no fees.  I didn't pay any fees for the five year fix at 2.44% though.

ACG

Rates have generally gone up in the last 10 months above 75% LTV. Also retention deals are generally not as good as new deals.
But Metro bank in particular, their accountants messed up didnt they last year or the year before. They have recently sold their mortgage book and probably dont want to be lending out as much at the minute - just a guess. 

K_S

lassfarfromhome said:

  I've got less than £20K to go so it's not really worth remortgaging with anyone else, I don't think.

@lassfarfromhome You're probably right, at £20k outstanding, it's very unlikely to be worth the hassle of remortgaging, especially when you take into consideration the cost of conveyancing. At this loan size, most remo products will not come with any cashback to help with conveyancing costs. While there may be remo rates available in the region of 1.6% or so, even if you get a rate that's 1% lower than Metro's it'll save you no more than £200 a year, significantly less than the costs of conveyancing.