Metro Bank has launched a new Joint Borrower, Sole Proprietor mortgage product, created to help first time buyers on to the property ladder, with the support of an immediate family member, as well as 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 an immediate family member such as a parent1 to act as the Joint Borrower in the event of a missed payment or change in financial circumstances. Lending will be subject to Metro Bank’s affordability checks and borrowers will need to meet enhanced eligibility requirements.
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.”
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.
For more information visit: Mortgage Options | Tailored to you | Metro Bank
Product Criteria
Product specifications
- Five year fixed rates
- Five years minimum term length, maximum term is 35 years.
- No product fee or valuation fee
Joint borrower criteria
- Joint Borrower limited to immediate family members only e.g., spouse, parents and grandparents, children and grandchildren.
- Joint borrower must have their own source of income outside of pension and/or other benefits.
Property criteria
- Properties above commercial premises or new builds are not accepted for the Joint Borrower Sole Proprietor mortgage.