Metro Bank has expanded its criteria for joint borrower sole proprietor (JBSP) mortgages to include non-relatives.
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.”
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.
Anna is currently the deputy editor for Mortgage Solutions and editor for Specialist Lending Solutions. She has worked as a journalist since 2019, having secured her Gold Standard NCTJ diploma from News Associates in a fast-track six-month course.
She started her career as a report at specialist publication The Insurance Insider covering a wide range of areas before joining Mortgage Solutions and Specialist Lending Solutions in 2021.
In her role, she helps put together and structure the news agenda for the day and writes up press releases, reports, interviews, analyses and exclusives across both titles. She also commissions blogs for Specialist Lending Solutions and hosts online masterclasses and in-person events across the business.
She has been shortlisted for three journalism awards, which include BIBA Journalist and Media Awards Scoop of Year Award in 2020, Headline Money Mortgage Journalist of the Year Award (B2B) in 2022 and 2023.
Prior to being a journalist, Anna worked in ecommerce across Snow + Rock, Cycle Surgery and Runners Need websites, and before that worked at specialist financial PR firm Rostrum.
In her spare time, Anna enjoys reading, seeing live music, and cooking for friends and family. When she gets a chance, she also enjoys hiking, skiing and indoor rock climbing.
