New Joint borrower, sole proprietor The mortgage product is intended for those who receive support from immediate family, such as a parent, who can provide financial support if a payment is missed or circumstances change.
Joint Borrower and Sole Proprietorship (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 the help of family, but without the names of those providing support on the title deeds.
In case of the new offer by Metro Bank, both the borrower and the co-borrower will be considered responsible for repayment. However, the borrower will retain all rights to the property with the co-borrower stepping in as a safety net to cover the cost of repayment if necessary.
Both the borrower and co-borrower will be subjected to enhanced affordability checks to ensure the product is suitable for all parties.
Charles Morley, mortgage distribution director at Metro Bank, said: “For many of today’s first-time buyers, getting onto the property ladder can seem impossible, and family members often want to do whatever they can to help.
“Acting as a co-borrower provides a way for the immediate family to provide this support without diluting their ownership of the property or requiring them to put up a deposit.
“At Metro Bank we recognize the importance of lending responsibly while continuing to innovate and challenge, and we have carefully developed our mortgage product with this in mind.”
Borrowers will receive specialist mortgage advice before applying for the product, whether through a broker or direct channels.
You can find out more about mortgage options for people struggling to build up a deposit here.
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