The British lender, which offers retail, business and private banking, said all lending in the portfolio is secured on property and has a similar credit risk profile to its current mortgage book.
"The acquisition of this high-quality loan Portfolio supports our high-growth, organic business model as we track ever closer to our 2020 guidance," Chief Executive of Metro Bank, Craig Donaldson, said.
The acquisition of UK mortgages will increase the loan-to-deposit ratio to about 78 percent, compared with the 2020 guidance of 80 percent, Donaldson added.
Metro, which listed on the London Stock Exchange last year and is Britain's first new High Street bank in over 100 years, has said it was on track to deliver a full year of profitability in 2017.
The acquisition of the mortgages, being bought at a discount to face value, will be financed using cash from existing resources.
The portfolio, bought from Cerberus European Residential Holdings B.V, is made up primarily of buy-to-let mortgages, with the rest being owner-occupied.
According to the Council of Mortgage Lenders, the UK mortgage market is worth 1.3 trillion pounds, representative of 11.1 million mortgages, and is the largest in Europe in terms of amount lent per year and the total value of outstanding loans.
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