Metro Bank has introduced a 100% mortgage product aimed at first-time buyers, allowing them to purchase property without a cash deposit.
The scheme requires applicants to secure a guarantee from parents or other family members, effectively transferring the financial risk from the borrower to their relatives.
With mortgage rates remaining elevated and house prices high, many potential buyers are unable to accumulate the standard 5% to 10% deposit required by most lenders.
This move addresses the persistent barrier of deposit savings that has locked many young professionals out of the UK housing market.
The product arrives as affordability pressures continue to constrain traditional mortgage lending.
With mortgage rates remaining elevated and house prices high, many potential buyers are unable to accumulate the standard 5% to 10% deposit required by most lenders.
Metro Bank’s approach attempts to bridge this gap by leveraging family wealth rather than requiring upfront cash from the borrower.