Metro Bank are now offering personal loans through RateSetter. We’ve kept this review for historical purposes.
How do Metro Bank loans hold up against the competition?
If you’ve been to the Metro Bank site and had a quote on a loan, it’s a smart idea to shop around before you sign on the line. Use the table below to compare costs for the loan that you have in mind.
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.
What is Metro Bank?
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?
Does Metro bank do loans?
Yes, Metro Bank currently offer personal loans up to £25,000. However, bucking the trend of closing high-street banks, it offers straightforward fixed rate loans from its “stores” – you can’t apply online, and you will need to have a Metro Bank current account.
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.
What credit score do I need to get a Metro Bank loan?
Metro Bank typically offers loans to applicants with high credit scores. It's important to note that your credit record is just one factor that Metro Bank considers. However, if you don't have a high credit score, you're very unlikely to get approved for a Metro Bank loan.
A "Good" or "Excellent" credit rating would require a score of 881 or higher if you're referring to Experian's scale, 531 or higher if you're referring to Equifax's scale and 604 or higher if you're referring to TransUnion's scale.
Do Metro Bank loans give an instant decision?
No. Currently, decisions aren't instant.
Can I get a second Metro Bank loan?
Yes, Metro Bank allows you to have more than one loan running at the same time. Each application for credit will be considered on its own merit. Alternatively, Metro Bank also allows you to effectively "top up" your loan by closing your current loan and starting a new, larger loan. There's no penalty for repaying ahead of time, but bear in mind that any overpayments may be subject to up to 2 months of interest beyond the date on which you overpay. Because of this, it may work out cheaper to run a second loan alongside the first, rather than consolidating the 2.
Can I make overpayments on a Metro Bank loan?
Yes, you can make overpayments without incurring any penalty fee. However, Metro Bank can continue to charge interest for up to 2 months on any sums overpaid. So, although making overpayments stands to save you money in interest, you may not save quite as much as you'd imagined.
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:
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:
Metro Bank stores are open 7 days a week and from 8am-8pm on weekends.
Is Metro Bank safe?
Metro Bank is a recognised UK bank and is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority. Eligible deposits are also protected up to £85,000.
Metro Bank customer reviews
Metro Bank has received mixed reviews from customers, according to review platform Trustpilot. It currently has a rating of 2.4 out of 5, based on more than 4,000 reviews (updated June 2023). Some customers praised Metro Bank’s customer service, while others cited issues with accessing their accounts online.
You can contact customer support on 0345 08 08 500.
Frequently asked questions
Get personalised loan quotes
More guides on Finder
Winners of the Finder Banking Innovation Awards 2023 announced
Now in their fourth year, we unveil the winners and highly commended companies of the Finder Banking Innovation Awards 2023.
The winners of the Finder Banking Innovation Awards 2023 have been announced!
Find out who has been voted as the winning and highly commended companies in the Finder Banking Innovation Awards 2023.
Finder Banking Innovation Awards 2023
Recognising innovation in digital banking, business banking, high street current accounts, personal finance apps and kids’ spending apps.
Best ways to invest £100 per month
Find out how you can start building wealth by investing just £100 a month along with some of the best ways to invest.
The best stock trading apps and platforms in the UK
We’ve tested, analysed and scored trading apps to find the 10 best trading platforms in the UK, who they’re best for and the pros and cons.
How to buy Shein shares when it goes public
Everything we know about the Shein IPO, plus information on how to buy shares.
4 ways to teach your children about money at Christmas
Help your kids learn to budget, manage their money and save this festive season with these simple money lessons.
Robinhood share trading app set to launch in the UK
Robinhood is close to launching in the UK. Find out when it’s happening, what investments will be available on the commission-free trading app and how it plans to make money.
One week to go until FinTech Connect 2023
There’s one week to go until FinTech Connect 2023 returns to London on 6 and 7 December. Get 20% off your ticket with Finder.