Compare Metro Bank Equity Release Quotes Against The Market

Metro Bank has disrupted the UK high street since its launch in 2010 with its focus on "fans, not customers" and accessible, branch-based service. In the later-life market, Metro Bank is a key player, though its approach differs from traditional equity release firms. Rather than focusing on "no-payment" roll-up plans, Metro Bank is a leader in Retirement Interest-Only (RIO) mortgages and flexible lending for older borrowers.

If you would like independent advice about whether Metro’s equity release alternatives are the best option for you, get in touch and one of our later-life lending advisers will review this for you.

Who is Metro Bank?

Metro Bank was the first new high-street bank to launch in the UK in over 150 years. Known for its dog-friendly branches (stores) that are open seven days a week, it has built a reputation for speed and a "common-sense" approach to lending. In the later-life sector, Metro Bank is particularly valued for its manual underwriting, where human experts - rather than just computer algorithms - look at an applicant's full financial picture.

What is Metro Bank Equity Release?

It is important to note that Metro Bank primarily provides Retirement Interest-Only (RIO) mortgages and Later Life mortgages rather than traditional "roll-up" lifetime mortgages.

• Retirement Interest-Only (RIO): Designed for homeowners aged 55 and over. You borrow against your home and pay only the interest each month. The loan amount remains static, and the capital is repaid only when you die, move into care, or sell the property.

• Later Life Mortgages: Standard repayment or interest-only mortgages that can extend to the age of 80 or 85, allowing older borrowers to remortgage or take additional borrowing later in life than most other high-street banks.

Key Features of Metro Bank Later Life Lending

Metro Bank’s products are highly regarded for their flexibility and tailored features:

• Human Underwriting: They are famous for considering complex cases, such as those with multiple income streams (up to four applicants) or non-standard property types.

• High LTV Options: For RIO mortgages, Metro Bank often offers some of the highest Loan-to-Value ratios in the market, sometimes up to 75% LTV for certain borrowers.

• No Interest Roll-up: Because you pay the interest monthly on a RIO mortgage, the debt never grows. This protects the full remaining equity for your beneficiaries.

• Contractor & Self-Employed Friendly: They have specific, generous criteria for retirees who may still be working as contractors or running a business.

• Fixed & Variable Rates: A range of competitive rates, including 2-year and 5-year fixed terms, providing certainty over monthly outgoings.

Metro Bank Interest Rates

Because Metro Bank's later life mortgages require monthly interest payments, their rates are typically significantly lower than those of standard "no-payment" equity release plans.

Speak to one of our advisers to find out what rate you would qualify for with them.

Eligibility Criteria

To qualify for a Metro Bank RIO or later-life mortgage, you generally need to meet the following:

• Age: Minimum age is typically 55 for RIO products. For standard later-life loans, they can lend to people who will be up to 80 or 85 at the end of the term.

• Income: Unlike standard equity release, you must pass an affordability check. Metro Bank is flexible here, considering pension income, rental income, and even employment income if you are still working.

• Minimum Equity: You typically need at least 25% equity in your home.

• Property Value: Minimum property values usually start around £100,000, and they consider a wide range of property types, including some non-standard constructions.

• Residency: Available for properties in England and Wales.

Metro Bank Later Life Lending Reviews

Metro Bank consistently receives high praise for its customer service, often topping the charts for "customer satisfaction in stores." In the lending market, brokers often rate Metro Bank highly for their "can-do" attitude when dealing with older borrowers who have been turned away by "computer-says-no" lenders. However, some customers note that the application process can be thorough due to the required affordability checks.

Pros and Cons of Metro Bank Later Life Lending

Pros:

• Protects Inheritance: Your debt never grows because you pay the interest monthly.

• Competitive Rates: Usually much cheaper than traditional roll-up equity release.

• Flexible Underwriting: Excellent for those with multiple income sources or self-employment.

• High LTV: Allows you to release more cash than many other RIO providers.

Cons:

• Requires Monthly Payments: Not suitable if you have no disposable income to cover monthly interest.

• Affordability Checks: You must prove your income is sufficient to sustain the loan for life.

• No "Roll-up" Option: If you want a plan with no monthly payments at all, Metro Bank is likely not the right fit.

• Risk of Repossession: Like any mortgage, your home is at risk if you fail to keep up with the monthly interest payments.

How to Apply

You can apply for a Metro Bank later-life mortgage by visiting one of their high-street stores or by speaking to an independent mortgage broker (recommended). Because these are "income-tested" products, you will need to provide detailed evidence of your retirement income, such as pension statements and bank records.

Get started here to begin a free, no-obligation chat with a later-life lending adviser who specialises in Metro’s products and services, and can review their suitability for you.