Metro Bank launches new offering after revealing losses

Metro Bank launches new offering after revealing losses

Challenger lender Metro Bank has brought an exclusive new mortgage product to market, shortly after announcing losses after tax of £11.1m during the first quarter of 2016.

The bank’s new intergenerational mortgage range will allow clients of adviser firm, St. James’s Place Wealth Management, to support their children and grandchildren with purchasing a property.

Earlier this month Metro Bank declared post-tax losses of £11.1m, despite recording 125% growth in total loans.

The offering enables clients to increase their relatives’ deposit through gifting money or providing extra mortgage security with a secured deposit account.

Customers can also apply for a joint mortgage with their relative, without having to register on the property deeds.

Craig Donaldson, CEO 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.”

Metro Bank is set to develop its innovation with the wealth management firm over the coming years.

David Bellamy, Chief Executive of St. James’s Place added: “At St. James’s Place we believe there is an opportunity for families to support each other and help with the intergenerational wealth divide.

“The intergenerational mortgage range allows families to contribute to their children’s homeowning ambitions but also enables them to be secure in their own future and plan for the longer term.”

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