Metro Bank will now allow godparents and family friends to support buyers on its joint borrower, sole proprietor mortgages.
It is widening the criteria on these home loans, which are primarily aimed at first-time buyers, to include those who are not direct family members.
For residential purchases, joint borrowers are now also permitted to reside in the property and can also now gift a deposit.
This product already allows up to 95% LTV for purchases with up to four named applicants on the mortgage.
The bank initially launched this product in 2020, although at the time it only allowed a maximum 90% LTV for purchases. It reintroduced a 95% LTV band for residential mortgages in January this year.
Metro Bank director of mortgage distribution Charles Morley says: “Joint borrower, sole proprietor mortgages have allowed parents and grandparents to help loved ones onto the property ladder.”
He aded this this more flexible approach will allow others, including godparents, cousins or even family friends to support buyers getting onto the first or next rung of the property ladder.
