The new Joint Borrower, Sole Proprietor mortgage product is for those who have support from immediate family, such as a parent, who can provide financial back-up in the event of a missed payment or change in circumstances.
Joint Borrower, Sole Proprietor (JBSP) mortgages have been on the market for several years. They provide a way for first-time buyers to get onto the property ladder with family help, but without the names of those offering support going on the deeds.
In the case of Metro Bank’s new offering both the borrower and the joint borrower will be deemed liable for the repayments. However, 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 said: “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.”
Borrowers will receive specialist mortgage advice before applying for the product, whether they go through broker or direct channels.
You can find out more about mortgage options for people who are struggling to a build a deposit here.