Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Strategy. Read the original article for full details.

Metro Bank Unveils Joint Borrower Sole Proprietor Mortgage for First-Time Buyers

Metro Bank has launched a new joint borrower, sole proprietor mortgage aimed at helping first-time buyers enter the property market. The product allows customers to borrow over 95% and up to 100% of the property's value, with the support of an immediate family member as a joint borrower.

The mortgage, sometimes referred to as a 'leg-up loan', requires an immediate family member—such as a parent—to act as a joint borrower. This family member would be responsible for repayments in the event of missed payments or changes in the borrower's financial circumstances. Both the main borrower and the joint borrower are subject to Metro Bank's affordability checks and must meet enhanced eligibility requirements.

The application process is available through both broker and direct channels, and borrowers will receive specialist mortgage advice before applying. While both parties are liable for repayments, the main borrower retains full ownership rights to the property. The joint borrower acts as a safety net, stepping in to cover repayments if needed.

The product is fixed for five years, with a minimum term of five years and a maximum term of 35 years. There are no product or valuation fees. Joint borrowers must be immediate family members and must have their own source of income, not solely from pensions or benefits.

Metro Bank also offers a joint borrower sole proprietor product up to 95% loan-to-value (LTV), where the criteria for joint borrowers are expanded to include non-relatives such as grandparents, godparents, or close family friends.

Last week, Metro Bank made several hires across its specialist mortgage business.