Metro sale of mortgages

moneysaver128

My friend has recently had a letter saying their Metro bank mortgage is being transferred to NatWest.

Metro Bank has  sold  part of its residential mortgage book to NatWest for £3.1bn.

It has been said in the media the value of the book accounts for around a third of the bank’s residential mortgage book.

The 13,000 mortgages to be transferred to NatWest are owner occupier which are largely on a repayment basis at 60 per cent loan to value and  borrowers have around two and half years remaining on a fixed term deal.

In fact my friend is coming to the end of the deal after the Natwest switchover and the  LTV wont be anything like 60% if they later renew with NatWest.

Does anybody have views on why this deal was done and why would Nat West want mortgages that have less than £80,000 outstanding? Also is it normal for customers to be given only a weeks notice of the change over and be told by Metro after that week all inquiries will not be dealt with by Metro?  Seems a little odd which borrowers were chosen and then little notice given?

[Deleted User]

Metro were skint. Natwest gave them money for low risk business.  Simple

Been in news for nearly a year now.  Your friend shouldn't be impacted negatively.  Positively usually as Natwest are more competitive for existing client rates than metro 

https://www.google.com/url?sa=t&source=web&rct=j&url=https://www.metrobankonline.co.uk/about-us/press-releases/news/metro-bank-natwest-mortgage-book/&ved=2ahUKEwjpl-XouJ_0AhUQQfEDHcmWBsIQFnoECAQQAQ&usg=AOvVaw3RFNqoMcICZa_s_mVCpdB5

ACG

I agree with JMA. 

Lenders sometimes sell a mortgage book as a way to free up cash for whatever reason. 
Other lenders buy that book for a fraction of the cost and manage the book of customers for a profit. 

Edi81

Remember the 60% LTV will be a weighted average - some will be more some less. 

moneysaver128

Thanks for your replies - I will pass the comments on.