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St James’s Place launches intergenerational mortgages with Metro Bank

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St James’s Place, in conjunction with Metro Bank, has launched the St James’s Place Intergenerational Mortgage Range, which is specifically designed for parents and grandparents who wish to support their children or grandchildren in buying their first home.

There is a marked and growing generational wealth issue in the UK. Decades of ever increasing wealth by each new generation came to an end in the early 1980s, meaning that for the first time in a century, the younger generation is no longer better off than its parents’ generation.
 
Intergenerational wealth transfer creates many positive opportunities to support generations within families. The new mortgage range offers flexibility to families who wish to provide support to their young relatives, and is designed to make home ownership achievable and affordable. A primary benefit of the product range is that it provides a number of options to allow St James’s Place clients to plan for their own future, while supporting their relatives to get onto the property ladder. 
 
David Bellamy, Chief Executive, St. James’s Place, says: “At St James’s Place 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.”
 
Craig Donaldson, Chief Executive, Metro Bank, adds: “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 collaborates with Metro Bank to develop exclusive, flexible and convenient banking solutions for their clients. St James’s Place is working with Metro Bank to launch further products in 2016. 
 
There are three options available within the St. James’s Place Intergenerational Mortgage Range: gifting – This is designed for families that wish to gift money to their relative thereby increasing their deposit; providing extra mortgage security – Families can apply for a Secured Deposit Account, which enables them to avoid gifting their wealth yet still adds security to their relative’s mortgage; and joint application. The option of jointly applying for a mortgage is available within the range. A differentiating factor of Metro Bank is that it does not require the parents or grandparents, as joint applicants, to be registered on the property deeds. This feature is critical to avoid exposure to stamp duty and other tax implications normally associated with purchasing a second property. 
 

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