Metro Bank has launched a new joint borrower sole proprietor (JBSP) mortgage product, created to help both first-time buyers and those already on the property ladder.
The mortgage allows customers to borrow over 95% and up to 100% of the value of the property, providing they have the support of an immediate family member such as a parent to act as the joint borrower in the event of a missed payment or change in financial circumstances.
The application process through both the broker and direct channels will see borrowers receive specialist mortgage advice before applying for the product. Both the borrower and the joint borrower will be deemed liable for the repayments, but the borrower will retain all rights to the property with the joint borrower stepping in as a safety net to cover the cost of repayments if required.
Both borrower and joint borrower will be put through enhanced affordability checks to ensure the product is suitable for all parties.
Charles Morley, director of mortgage distribution at Metro Bank, commented: “For many first-time buyers today, getting on the property ladder can feel impossible, and family members often want to do anything they can to help.
“Acting as a joint borrower provides a way for immediate family to be that support without watering down the ownership of the property or being asked to provide a deposit. At Metro Bank we understand the importance of lending responsibly while continuing to be innovative and challenging, and we’ve carefully developed our mortgage product with this in mind.”
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