Of Special Interest
15th November 2011
Metro Bank UK fails to sell mortgages
Metro Bank was revealed to have made just 100 mortgage loans since opening 15 months ago. Metro Bank planned a slow start with a target to open just 10 branches in the first two year and has opened 9 to date.
The findings have been used by some commentators to suggest there is little hope for new banking entrants. This is not supported by the facts with Aldermore, launched at the same time as Metro having attracted 3,000 customers.
Metro Bank has been clear from launch that its value proposition comes from the levels of service offered and not from offering the lower loan / higher deposit rates. Perhaps the real lesson from the figures is that customers may be willing to pay 1/2%, 1% or even more extra on short term credit in return for professional and friendly service they are unwilling to do the same on a mortgage where it could cost thousands or even tens of thousands more during the full mortgage term.