The range, exclusive to St. James’s Place clients, is designed for parents and grandparents looking to support their children or grandchildren in becoming first-time buyers.
Metro Bank has launched an ‘intergenerational’ range of mortgages with wealth management firm St. James’s Place.
The range, exclusive to St. James’s Place clients, is designed for parents and grandparents looking to support their children or grandchildren in becoming first-time buyers.
Homebuyers can set up a joint application with a relative who doesn’t have to be registered on property deeds, meaning the buyer can avoid paying the 3% stamp duty surcharge on second homes.
There are two other options: gifting money to relatives or applying for a secured deposit account to add security to the first-time buyer’s mortgage.
Craig Donaldson, chief executive of Metro Bank, said: “Accessibility to the property market is a major challenge for young people and we understand their family’s desire to support them.
“We are delighted to be offering this innovative new range of mortgages that will provide St. James’s Place clients with peace of mind, while enabling more young people to get onto and progress up the property ladder.
"We look forward to continuing to innovate alongside St. James’s Place over the coming years.”
St. James’s Place said decades of wealth increasing per generation came to an end in the early 1980s, meaning younger generations are now no longer better off than their parents’ generation.
David Bellamy, its chief executive, said: “We believe there is an opportunity for families to support each other and help with the intergenerational wealth divide.
“We now live in a world where it’s possible for four generations to exist within a family. As the UK demographics change, wealth is increasingly being transferred between generations during lifetimes.
“At St. James’s Place we have certainly seen many of our clients wishing to provide substantial financial support to their adult relatives today.
“While it is great to see families offering such support, they also need to be secure in their own future. In an increasingly complex world, the need for reliable and expert advice has never been more obvious.
“The Intergenerational Mortgage Range allows families to contribute to their children’s home-owning ambitions but also enables them to be secure in their own future and plan for the longer-term.”
