Metro Bank has cut rates on its 90% and 95% loan-to-value fixed-rate residential mortgages by 20 basis points across the range. 

This reduction also applies to customers borrowing the challenger bank’s professional range, which it revamped in May to offer an income multiple of up to 5.5 times annual earnings, available at up to 90% LTV. 

The lender finally adds that its maximum loan size at 95% LTV has increased to £675,000 from £570,000, bringing it into line with the firm’s 90% LTV mortgages. 

The bank says the new rates, which come to market today (22 July), at 90% LTV sees a two-year residential loan at 2.99%, a three-year offer at 3.09%, a five-year deal at 3.19% and a professional five-year mortgage at 3.34%.

For 95% LTV deals, this sees a two-year residential loan at 3.49%, a three-year offer at 3.59% and a five-year mortgage at 3.69%.

The bank says an arrangement fee of £999 applies to most loans.

It adds that capital raising is permitted up to 80% LTV.

Metro Bank director of mortgage distribution Charles Morley says: “We’re pleased to further enhance our higher LTV mortgages with these significant rate reductions. 

“Alongside increasing maximum loan sizes, it demonstrates our strong commitment to a wide range of borrowers as we build on our plans to become the UK’s premier specialist lender.” 

In March, the bank announced its entry into the near-prime mortgage market.

At the time Metro Bank director of mortgage distribution Charles Morley said the move was part of the lender’s ambition to become the UK’s “number one specialist bank.”