Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.
Metro Bank Launches JBSP Mortgage Up to 100% LTV for First-Time Buyers
Metro Bank has launched a joint borrower sole proprietor (JBSP) mortgage, enabling first-time buyers to borrow up to 100% loan to value (LTV) with the support of an immediate family member. The product allows borrowing over 95% LTV, up to the full purchase price of the property.
Both the main borrower and the joint borrower must pass enhanced affordability checks. Applicants are also required to receive specialist mortgage advice, either directly from Metro Bank or through a broker.
The launch comes amid a rise in sales of 100% mortgages, with several 95%-plus LTV deals introduced this year by other lenders, including Santander and Melton Building Society. According to the report, sales of such mortgages reached 574 in the first three quarters of last year, marking a five-year high.
For letting agents and inventory clerks, the introduction of higher LTV mortgage products may impact the profile of first-time buyers entering the market, potentially increasing demand for rental properties as more individuals are able to purchase homes with family support.
Source: Mortgage Solutions