Metro Bank opened in 2010 – the first new bank on the UK high street in 150 years. It prides itself on being a new kind of high street bank: simple services with the personal in-store touch, and you can bring your dog too! As the official bank of the pet-lover (its stores give out dog biscuits and it’s a friend of the Kennel Club and Battersea Cats and Dogs Home), this bank has figured out the way to Britain’s heart, but is Metro Bank barking mad or practically purr-fect?
How do Metro Bank loans work?
Metro Bank is especially proud of its “single fixed-rate APR”, but what does that mean exactly?
Most lenders have different interest rates for different loan durations, or for different loan amounts. Additionally, most lenders will also tailor the rate that they offer to the individual who has applied. In other words, if you have a poor credit rating, or low income vs. expenditure, a lender might deem your loan to be higher risk, and offer you a higher rate than that advertised.
Metro Bank, however, says that if your loan application is successful, the interest rate you pay will not be affected by your personal circumstances or by the amount of the loan or the period over which it is to be repaid. Provided they’re approved for a loan, borrowers needn’t feel like they’re being discriminated against.
So is there a catch? Well, you do have to hold a Metro Bank current account. That’s not unusual from a high street bank, but it will turn some potential borrowers off.
Late repayments can cause you serious money problems. See our debt help guides.
Key features of Metro Bank personal loans at a glance
Available to Metro Bank current account holders.
Borrow £2,000-£25,000 over 1-5 years.
Personalised quick quote with no impact on your credit rating. Find out how much your loan would cost without affecting your credit score.
Fixed APR. No matter what your situation, how much you borrow or how long you borrow it for, Metro Bank has a single, fixed-rate APR.
Fixed monthly repayments. Metro Bank will take a fixed amount out of your Metro Bank current account each month, so you never need to worry about forgetting a payment.
Quick access to funds. If you’re accepted, you could have the money the same day.
No hidden fees. Metro Bank personal loans don’t come with the “set-up” or “arrangement” fees that you might see elsewhere.
Repay your loan early at any time. Whilst this will not necessarily save you any money, it means you can be free from the loan at any point.
No-gimmicks approach. Metro Bank don’t suggest payment holidays or extras that will just cost you more money in the long run, just a simple, straightforward loan.
What is APR?
If you’re comparing any credit-based products, it won’t be long before you’ll come across the Annual Percentage Rate (APR). This figure is designed to provide an annual summary of the cost of a loan. It takes into account both interest and any mandatory charges to be paid (for example an arrangement fee) over the duration of a loan.
All lenders must calculate the APR of their products in the same way, and must tell you the APR before you sign an agreement, so for consumers it can be a handy tool for comparison.
Lenders are only obliged to award their advertised APR to 51% of people who take out the loan – the other 49% could pay more. That’s why it’s often referred to as the representative APR.
Am I eligible for a Metro Bank personal loan?
You should only apply for a Metro Bank personal loan if you’re certain you can meet the repayment terms, and you meet the following criteria:
You’re aged 18 or over.
You’re resident in the UK. You’ll also need to provide proof of your identity and address. If you’re not a UK, EU, EEA, or Swiss national you’ll need a valid visa/residence permit.
You have a Metro Bank Current Account.
Metro Bank loans are decided based on credit rating, so a good credit score is a must too.
How can I apply?
Metro Bank prides itself on being a new kind of bank – one which is open when you need it and can get you what you want right then and there.
You can only apply for a Metro Bank personal loan if you already hold a Metro Bank current account, and you have to apply in-store. Simply visit your local Metro Bank and speak to an advisor. You’ll need to bring with you:
Your address details and proof of address
Proof of your personal circumstances (payslips, employment details)
Metro Bank stores are open 7 days a week and from 8am-8pm on weekends.
Frequently asked questions
Metro Bank is a responsible lender and won’t lend money unless it deems this to be affordable to the borrower. Metro Bank does sometimes offer additional credit to its existing loan customers, however.
When you apply for a loan from Metro Bank, you’ll be assessed through a process called ‘credit scoring’. Your credit score is based on information such as your ability to repay, your credit history and how long you’ve lived at your current UK address, and will be used by Metro Bank to help them decide whether or not to offer you a loan. Metro Bank do this because they don’t want to give you a loan that will end up potentially worsening, rather than improving, your financial circumstances.
There’s no arrangement fee, however you will pay interest on the loan. There’s also no early repayment fee.
Yes. As long as it is affordable, Metro Bank allow you to merge different debts into one. Remember that doing so may incur fees and charges for switching your loan to a new lender.
No. Your interest rate is guaranteed for the duration of your loan once you’ve signed the agreement. It’ll stay the same no matter how much you borrow.
Chris Lilly is a publisher at finder.com. He's a specialist in credit-based products including business and personal loans, mortgages and credit cards, and is passionate about helping UK consumers make informed decisions about their borrowing. In his spare time Chris likes forcing his kids to exercise more.
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