The new one Joint borrower, sole proprietorship The mortgage product is intended for people who receive support from immediate family, such as a parent, who can provide financial support 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 offer first-time buyers a way to get onto the property ladder with the help of their family, but without the names of those offering support.
In the case of Metro Bank’s new offering, both the borrower and the joint borrower are considered liable for the repayments. However, the borrower retains all rights to the property, with the joint borrower acting as a safety net to cover the costs of repayments, if necessary.
Both the borrower and the joint borrower will be subject to stricter affordability checks to ensure the product is suitable for all parties.
Charles Morley, mortgage distribution director at Metro Bank, said: ‘For many first-time buyers today, getting on the property ladder can seem impossible, and family members often want to do whatever they can to help.
“Acting as a joint borrower allows the immediate family to provide that support without diluting ownership of the property or being asked to post a security deposit.
“At Metro Bank we understand the importance of responsible lending while remaining innovative and challenging. We have carefully developed our mortgage product with this in mind.”
Borrowers receive specialist mortgage advice before applying for the product, whether through brokers or direct channels.
More information about mortgage options for people having trouble building a down payment can be found here.