Metro Bank has launched a 95% to 100% loan-to-value Joint Borrower Sole Proprietor (JBSP) mortgage, giving buyers the ability to purchase a home without providing a deposit when an immediate family member joins the mortgage application.
The Metro Bank 100% mortgage is one of the more substantial family-assisted products to enter the market. It can provide loans of up to £675,000, use income from as many as four applicants and consider borrowing of up to 4.45 times combined income, subject to affordability. This creates a route into larger family homes that would remain beyond the reach of many buyers relying only on their own salary.
However, this access comes at a price. The five-year fixed interest rate is currently 6.99%, and the supporting parent or family member becomes liable for the mortgage payments despite having no ownership rights over the property. Buyers also need to consider what their finances, property value and family circumstances could look like when the fixed period ends.
The product should not be seen as a quick and easy route to purchasing the half-million-pound home you have had your eye on. It requires careful consideration of long-term affordability, remortgage options and the potential impact on the retirement plans of every borrower and supporting family member named on the mortgage.
How the Metro Bank 100% JBSP mortgage works
A Joint Borrower Sole Proprietor mortgage allows more than one person’s income to be included in the mortgage assessment while only one person, or one purchasing household, becomes the legal owner of the property.
A parent could therefore join their child’s mortgage application and allow their income to support the affordability calculation without appearing as an owner on the property title. Metro Bank permits income from up to four applicants, although supporting borrowers above 95% LTV must be immediate family members.
Metro Bank’s published criteria as of July 2026 include:
- Lending from above 95% to 100% LTV
- No minimum deposit or existing equity requirement
- A maximum mortgage of £675,000
- Five-year fixed-rate products
- A maximum mortgage term of 35 years
- No product fee or valuation fee
- Income from up to four applicants
- A maximum income multiple of 4.45 times, subject to affordability
- Availability for purchases and pound-for-pound remortgages
- Manual underwriting and enhanced eligibility checks
The product is not limited exclusively to first-time buyers. Metro Bank states that it can also support existing homeowners, although much of its immediate appeal will be among younger buyers who need family income to qualify for their first home.
New-build properties and homes above commercial premises are excluded.
The parent is a borrower, not simply a guarantor
The most important feature for families to understand is that the supporting relative is entering the mortgage agreement as a borrower.
Metro Bank confirms that both the owner and supporting borrower are liable for repayments. The owner retains the rights to the property, but the family member must step in if payments cannot be maintained.
This creates several potential consequences for the parent:
- Missed payments could affect their credit record.
- The mortgage commitment may reduce their capacity to obtain other borrowing.
- It could affect a future residential mortgage, buy-to-let application or equity-release plan.
- The liability may continue for longer than originally anticipated.
- Retirement plans may become more complicated if the child cannot later support the mortgage independently.
The arrangement should not be treated as a signature required only to satisfy the lender. The supporting relative is accepting a genuine financial obligation while receiving no corresponding share of the property.
Families should also decide privately how payments, maintenance costs and any future sale proceeds will be handled. The legal ownership may be straightforward, but informal assumptions about who has contributed what can create disputes later.
The 6.99% interest rate makes this an expensive route into ownership
Metro Bank’s current product guide sets the interest rate for its above-95% LTV JBSP mortgage at 6.99% fixed for five years, with no product fee and no valuation fee. Its current follow-on standard variable rate is listed as 7.25%, although both mortgage products and variable rates can change.
The absence of fees is useful, but it does not fully compensate for the higher interest rate.
On a repayment mortgage over 35 years, the approximate monthly payments would be:
|
Mortgage Amount
|
Approximate monthly repayment at 6.99%
|
|---|---|
|
£200,000
|
£1,276
|
|
£300,000
|
£1,914
|
|
£500,000
|
£3,191
|
|
£675,000
|
£4,308
|
These figures are illustrative and assume the rate remains fixed at 6.99% for the initial period.
The cost should be compared with other low-deposit products. Lloyds and Halifax launched a £5,000-deposit mortgage with a starting rate of 5.89%, a maximum property value of £300,000 and borrowing of up to 98% LTV. That product does not accept gifted deposits and requires the purchasers to pass affordability without adding a parent as a supporting borrower.
For a £300,000 purchase, the broad comparison is:
- Metro Bank: £300,000 mortgage at 6.99%; approximately £1,914 per month.
- Lloyds or Halifax: £295,000 mortgage after a £5,000 deposit at the launch rate of 5.89%; approximately £1,660 per month.
That represents an illustrative difference of around £254 per month, or more than £15,000 over five years, although the loan amounts, eligibility rules and available rates are different.
A household capable of raising £5,000 and passing affordability without parental income would therefore need a clear reason to choose the more expensive JBSP structure.
Is the Metro mortgage realistically most useful above £300,000?
Metro Bank’s £675,000 maximum makes the product more flexible than several competing low-deposit mortgages. At first glance, its strongest appeal appears to be for buyers seeking properties between £300,000 and £675,000 who have little or no deposit, although the most suitable price range is more nuanced.
Below £300,000, products such as the Lloyds and Halifax £5,000 deposit mortgage may offer a cheaper and cleaner structure for buyers who meet the affordability criteria independently, especially as the parent would not need to become responsible for the mortgage.
Between £300,000 and £500,000, Yorkshire Building Society offers a separate £5,000-deposit mortgage at up to 99% LTV. This is available on properties worth up to £500,000, with a maximum loan of £495,000 and a term of up to 40 years. Unlike the Lloyds product, the published criteria say a family-gifted cash deposit can be accepted, while the Metro JBSP applications are not eligible.
Metro’s strongest use cases are likely to include:
- Buyers who cannot provide even a £5,000 deposit.
- Buyers whose own income is insufficient but whose family has income available to support the application.
- Couples or families seeking a property above competing £300,000 or £500,000 caps.
- Households in higher-value parts of the UK where entry-level family homes exceed the limits of other low-deposit products.
- Families who prefer to preserve savings for moving costs, repairs or an emergency fund rather than using everything as a deposit.
Above £500,000, Metro occupies a particularly distinctive position because its £675,000 lending ceiling extends beyond the limits of everything else this segment of the mortgage market offers.
The opportunity for borrowers: access to a suitable home sooner
The main benefit is not simply that the buyer can avoid saving a deposit. The combined-income calculation may allow a young family to buy a home that meets its longer-term requirements.
A buyer relying only on one or two early-career salaries may otherwise be restricted to a smaller flat or a property in an unsuitable location. Adding parental income could support the purchase of a home with an additional bedroom, outside space or better access to work and schools. This could reduce the likelihood of having to move again within a few years, with the associated legal fees, moving costs and Stamp Duty implications.
The product can also help families whose monthly finances are stronger than their savings position. High rents can make it difficult to accumulate a substantial deposit even when the household has demonstrated that it can manage a significant monthly housing payment.
Housing affordability remains structurally difficult. In 2025, the median home in England cost £300,000, equivalent to 7.6 times the median annual earnings of a full-time employee, which loosely means the ratio remains far above the income multiples normally available through a mortgage.
Family assistance is already shaping access to ownership. UK Finance analysis found meaningful differences in deposits, incomes, ages and purchase prices between first-time buyers who received family support and those who did not.
Metro’s structure allows families to provide that support through income rather than requiring parents to release savings, sell investments or raise money against their own home.
Could 100% mortgages support the wider housing market?
High-LTV mortgage products increase the number of households capable of purchasing property. This can support transaction volumes, particularly in areas where first-time buyers are being constrained by deposit requirements or income multiples.
At the lower end of the market, reduced first-time buyer demand can affect entire property chains. Existing owners may struggle to sell starter homes, which can delay their move into larger properties and reduce transactions further up the chain.
Products that increase first-time buyer purchasing power may therefore reduce some downward pressure caused by weak owner-occupier demand. They can also help buyers compete with investors purchasing properties at discounted prices.
However, easier credit does not resolve the underlying shortage of suitable homes or the gap between prices and wages. There is also a risk that additional borrowing capacity becomes reflected in asking prices, particularly where housing supply is limited.
Our previous analysis of whether £5,000-deposit mortgages could put the UK economy at risk examined this tension: low-deposit lending can widen access to ownership and support the market, but it also increases household leverage and leaves buyers more exposed to changes in property values.
Negative equity can develop after a relatively small price fall
A 100% mortgage begins with no equity cushion. If the property value falls immediately after completion, the mortgage can become larger than the value of the home. Negative equity does not automatically create a problem for someone who keeps making payments and remains in the property. It becomes more restrictive when the owner needs to sell, move or remortgage.
Because the Metro mortgage can run for 35 years, the capital balance falls slowly during the first five years.
On a £300,000 mortgage at 6.99% over 35 years, the approximate balance after five years would still be around £288,000. If the property remained worth £300,000, the homeowner would have accumulated equity of approximately £12,000, giving an LTV of around 96%.
A 5% fall in value would reduce the property to £285,000, placing the borrower in slight negative equity despite five years of repayments.
The same percentage applies across different loan sizes:
|
Initial value and mortgage
|
Approximate balance after five years
|
Value after 5% fall
|
Approximate position
|
|---|---|---|---|
|
£200,000
|
£288,000
|
£285,000
|
£3,000 negative equity
|
|
£500,000
|
£480,000
|
£475,000
|
£5,000 negative equity
|
|
£675,000
|
£648,000
|
£641,250
|
£6,750 negative equity
|
Negative equity occurs when the market value of a property is below the outstanding mortgage secured against it.
Buyers can reduce this risk by making permitted overpayments, maintaining cash reserves and avoiding paying an inflated price simply because the lender will provide the required mortgage.
The five-year exit plan matters as much as the initial approval
The most important question may arise in 2031 rather than in 2026.
When the five-year fixed period ends, the borrower will need to choose between a new Metro Bank product, the lender’s prevailing variable rate (currently sitting at 7.25%) or a remortgage to another lender.
A new lender will reassess:
- The property’s current value
- The outstanding mortgage balance
- The owner’s income and employment
- The supporting parent’s age and income
- The remaining mortgage term
- Credit history and payment conduct
- The loan-to-value ratio
- The lender’s criteria at that time
If the property value remains unchanged, the mortgage may still be close to 96% LTV after five years. The choice of remortgage products could therefore remain limited.
If the owner’s income has risen sufficiently, they may be able to refinance without the parent. If their income has not increased, the supporting borrower may still be required.
This becomes particularly relevant where the parent intends to retire. Metro’s current criteria state that the joint borrower must have a source of income outside pension income or benefits. A future lender may apply different rules, but the loss of employment income could materially reduce the family’s remortgage capacity.
The family should therefore consider from the outset whether it is realistic for the owner’s income to support the remaining mortgage independently within five years.
Practical steps if you're considering a 100% JBSP mortgage
Families considering the product should complete a five-year plan rather than assessing only whether the initial application can be approved.
They should:
- Compare the mortgage against £5,000-deposit, 98%, 99% and conventional 95% LTV alternatives.
- Stress-test the monthly payment against reduced income, childcare costs and higher household expenditure.
- Assess the parent’s retirement timetable, existing borrowing and future housing requirements.
- Estimate the mortgage balance after five years, not only the balance at completion.
- Model flat, rising and falling property values to understand the likely remortgage LTV.
- Consider regular overpayments where affordable to build equity more quickly.
- Maintain a cash reserve rather than completing with no savings left for repairs or emergencies.
- Obtain separate legal advice so every borrower understands the liability being accepted.
Closing thought: Metro Bank’s 100% mortgage is valuable, but highly case-specific
Metro Bank’s new JBSP mortgage is a useful addition to the market. It gives families a way to support younger buyers without providing a substantial deposit or taking ownership of the property, while the £675,000 maximum opens access to homes beyond the limits of several competing low-deposit products.
Its value is strongest where parental income is genuinely required, the buyer has little or no deposit, or the desired property sits above the price caps imposed by other lenders.
The 6.99% rate, joint family liability and limited initial equity mean it should not be selected purely because 100% lending is available. A buyer able to raise a modest deposit and qualify independently may obtain a lower rate, preserve the parent’s borrowing capacity and create a simpler route to remortgaging.
The correct assessment is therefore not limited to whether the family can buy the property today. It must establish whether the owner can afford it, build sufficient equity and refinance it on sustainable terms when the five-year fixed period ends.
