Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.

Metro Bank Reports 73% Growth in Specialist Mortgage Lending

Metro Bank’s interim results for the first half of 2026 show a 73% year-on-year increase in specialist mortgage lending, rising to £2.2 billion from £1.2 billion in the same period last year. The bank also reported £1 billion of new gross lending in H1 2026.

Total retail mortgages at Metro Bank stood at £4.8 billion at the end of H1 2026, representing 53% of the bank’s lending portfolio. Growth in new corporate, commercial, and SME lending was offset by attrition, particularly in commercial real estate and portfolio buy to let (BTL).

The bank’s target lending segments—which include corporate, commercial, SME banking, and specialist mortgages—grew by 43% year-on-year to £6.2 billion. Commercial lending increased by 30% from £3.1 billion to £4 billion during the period, supported by £1 billion of new gross lending in the first half of the year.

Profitability and Credit Quality

Metro Bank reported an underlying profit before tax of £60.6 million, up 34% from £45.1 million a year earlier, marking its most profitable half-year to date. Underlying net interest income rose by 8% year-on-year to £241.5 million, and underlying revenue increased by 5% to £301 million. The net interest margin improved from 2.87% to 3.18%, with an exit net interest margin of 3.25% at the end of June.

The bank’s allowance for impairment decreased to £134 million, down from £170 million at the end of 2025. This reduction was attributed to the sale of non-performing unsecured personal loans within its run-off portfolio. Credit performance also improved, with arrears falling to 3.9% from 4.9% a year earlier, and non-performing loans declining to 4.39% from 5.42% in H1 2025.

These results may be of interest to UK letting agents and inventory clerks monitoring trends in specialist mortgage lending, buy to let, and commercial property finance.