Metro Bank has launched a new mortgage product that allows buyers to borrow up to 100% of a property's value, but only if a close family member agrees to share responsibility for the debt. The Joint Borrower Sole Proprietor mortgage is aimed primarily at first-time buyers struggling to raise a deposit, offering loans of more than 95% and up to the full value of a home.
How the Joint Borrower Sole Proprietor Mortgage Works
Unlike a traditional joint mortgage, the family member will not own a share of the property. Instead, they act as a financial backstop, with the buyer remaining the sole legal owner while both parties are jointly liable for the mortgage debt. The borrower must persuade an immediate family member – such as a parent, grandparent, spouse, child, or grandchild – to sign up as a joint borrower, making them legally responsible for the mortgage repayments if the homeowner falls behind or their financial circumstances deteriorate.
Metro Bank said the product is also available to existing homeowners, subject to eligibility checks. Charles Morley, director of mortgage distribution at Metro Bank, said: "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."
Eligibility and Product Details
Anyone applying will receive specialist mortgage advice before taking out the loan, whether they apply directly or through a broker. Metro Bank stressed that both the borrower and the supporting family member will be assessed under its affordability rules and enhanced eligibility checks before a loan is approved. The joint borrower must have their own earned income rather than relying solely on a pension or state benefits.
The mortgages are available as five-year fixed-rate deals with terms of between five and 35 years. There are no product fees or valuation fees. However, the offer is not available on new-build homes or properties located above commercial premises.
Context and Industry Impact
The launch reflects growing innovation among lenders as they look for ways to help buyers overcome one of the biggest hurdles to home ownership – finding a deposit while also meeting increasingly demanding affordability tests. While 100% mortgages largely disappeared after the financial crisis, lenders have gradually begun reintroducing products designed to help creditworthy borrowers with little or no deposit, often by asking family members to provide additional financial support or guarantees.
Consumer experts say such schemes can provide a valuable route on to the housing ladder, but families should carefully consider the risks before signing up, as joint borrowers remain liable for the debt if the homeowner cannot keep up repayments. The move comes as soaring house prices and tougher affordability rules continue to leave many aspiring homeowners relying on the so-called 'Bank of Mum and Dad' to get on to the property ladder.
