The bank says that the change to JBSP will allow more people to get onto the property ladder, as godparents or close family friends can now be used, for instance.

The lender said that, for residential purchases, joint borrowers can reside in the property and gift a deposit.

Metro Bank’s JBSP goes up to a maximum loan to value (LTV) of 95 per cent and can accept up to four named applicants on the mortgage.

A maximum of two households are allowed, including the security property household on completions.

Charles Morley, director of mortgage distribution at Metro Bank, said: “JBSP mortgages have long allowed parents and grandparents to help loved ones onto the property ladder. Metro Bank’s enhancements today provide a more flexible approach, allowing godparents, cousins or even family friends to support loved ones onto the first or next rung of the property ladder.”

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Metro Bank decided not to sell £3bn of its residential mortgage portfolio, citing market conditions at the end of last year.

This came after speculation earlier this year that the lender was looking to offload loans to boost its profitability and reduce its risk weight assets.

As a result, the bank secured a finance package of £925m to raise capital and confirmed a cost reduction plan.

The plan would reduce its headcount by a fifth, in a move that would save around £30m per year.