Joint Borrower Sole Proprietor Mortgages

At Landmark, we know that first-time buyers are still struggling to get onto the property ladder. To start their property journey, many are joining forces with partners, friends, or family to combine two or more deposits and incomes, allowing them greater purchasing power. Aimed at bridging the gap between salaries and property prices, and with the government’s 3% stamp duty surcharge on second homes being introduced last year, Joint Borrower Sole Proprietor (JBSP) mortgage applications are on the increase.

Most JBSP residential mortgages allow parents, step-parents, or grandparents to help their child or grandchild with their mortgage. Their incomes are included in the affordability assessment, without their having to be on the title deeds and become joint owners of the property. These arrangements are for purchase and repayment applications only and offer a loan-to-value (LTV) of up to 90 percent.

On the plus side, it means that the supported applicant will be able to get a foot on the property ladder when they may not be able to otherwise.

Such bespoke mortgages are only dealt with by certain lenders therefore speaking to an advisor that works with a broad range of lenders is imperative for this type of application. For advice on getting a JBSP mortgage, get in touch with The Landmark Private Finance expert team who will find you the best possible plan.

Key Mortgage Lending Criteria:

• The term of the mortgage will be defined by the age of the oldest applicant – some lenders will lend up to the age of 80.
• Your own mortgage (if you still have one) and financial credit commitments will be considered. to determine the mortgage lending offered.
• Some lenders will allow up to a 95% LTV – so 5% deposit only.
• Some lenders have a minimum property value and a maximum loan value.
• Up to four applicants accepted utilising all four incomes for affordability.
• No minimum income criteria.
• No exit strategy required for parents/grandparents.
• Repayment only or Interest only.

Benefits of a JBSP mortgage:

• Greater scope for your grand/child to increase their borrowing capacity and get their foot on the property ladder.
• You will not be liable for the second home 3% stamp duty charge as you will not be on the title deeds.
• Unlike a guarantor mortgage, you will not have to put up additional security such as your home or savings.
• It provides an easy exit strategy once the applicant is able to afford the mortgage on their own.

Please call 0203 773 7299 or email info@landmarkprivatefinance.com Landmark Private Finance to discover whether a JBSP Mortgage is an option for you or if you have any further questions.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE