Joint borrower, sole proprietor mortgages are products offered by a select few mortgage lenders. They are primarily designed to help first time buyers increase their affordability and allow parents and guardians to help their children buy, without giving them cash.
Your home may be repossessed if you do not keep up repayments on your mortgage
What is a Joint Borrower, Sole Proprietor Mortgage?
A JBSP (joint borrower, sole proprietor) mortgage is a product which is designed so parents, guardians or others can help you get onto the property ladder.
Ordinarily help with a mortgage would take the form of a large sum of cash to help with a deposit. Joint borrower, sole proprietor mortgages take on a different approach.
Joint Borrower Sole Proprietor mortgages allow a parent or guardian to join you on the mortgage application. This way, their income will be considered when the lender calculates how much they will lend you.
This is where the term ‘joint borrower’ comes from.
Usually, to get help from a parent you would need to ask them to part with a considerable amount of cash to help you bolster your deposit and increase your buying power.
Conversely, Joint Borrower Sole Proprietor mortgages allow a parent or guardian to join you on the mortgage application. This way, their income will be considered when the lender calculates how much they will lend you.
This is where the term ‘joint borrower’ comes from. All names on the mortgage will be equally responsible for keeping up repayments on the mortgage loan.
Sole Proprietor means that although the mortgage is in two or more people’s names only one named person need go on the deeds. This eliminates certain potential tax liabilities from any relations who will be jointly named on the mortgage. For example, Stamp Duty Land Tax.
Sole Proprietor means that although the mortgage is in two or more people’s names only one named person need go on the deeds. This eliminates certain potential tax liabilities from any relations who will be jointly named on the mortgage. For example, Stamp Duty Land Tax.
The main benefit of a JBSP mortgage is that it will help someone buy a property that they otherwise wouldn’t have been able to afford. It does this without the need for large deposit gifts from family.
Secondly, by organising a mortgage this way, the primary applicant wouldn’t lose their First-Time Buyer status and therefore the purchase will not be subject to Stamp Duty Land Tax or the increased Stamp Duty which is required when purchasing a second home or investment property.
The main benefit of a JBSP mortgage is that it will help someone buy a property that they otherwise wouldn’t have been able to afford. It does this without the need for large deposit gifts from family.
Secondly, by organising a mortgage this way, the primary applicant wouldn’t lose their First-Time Buyer status and therefore the purchase will not be subject to Stamp Duty Land Tax or the increased Stamp Duty which is required when purchasing a second home or investment property.
If the relationship between the two borrowers breaks down, it could prove difficult for the non-legal owner to have their name removed from the mortgage.
They are a niche product, and you will most likely need the expertise of an expert mortgage broker to obtain one.
If the relationship between the two borrowers breaks down, it could prove difficult for the non-legal owner to have their name removed from the mortgage.
As above, the non-legal owner is also legally liable to pay the mortgage repayments. This is the case even though they have no legal right over the property and don’t stand to benefit from any financial gain which it may make.
By joining someone on a mortgage you also create a financial link between the two of you. Should the legal owner default on the mortgage then this will also negatively affect the non-legal owner.
They are a niche product, and you will most likely need the expertise of an expert mortgage broker in order to obtain one.
This depends entirely on your current financial situation and the income of all parties who are going to be on the mortgage application.
The benefit to the affordability is that the non-legal owner’s income would be used to calculate how much money they may be happy to lend you. So, if a parent wants to help their child with this type of mortgage and earns £30,000 per annum then the lender would take the £30,000 in to account and conclude that a higher level of mortgage loan could be offered.
This depends entirely on your current financial situation and the income of all parties who are going to be on the mortgage application.
The benefit to the affordability is that the non-legal owner’s income would be used to calculate how much money they may be happy to lend you. So, if a parent wants to help their child with this type of mortgage and earns £30,000 per annum then the lender would take the £30,000 in to account and conclude that a higher level of mortgage loan could be offered.
Yes, the lender will also want to check over the non-legal owner’s financial situation. They should expect the same checks as the legal owner. This means that they should be willing to share their bank accounts, pay slips and other means of evidence with the lender.
Yes, the lender will also want to check over the non-legal owner’s financial situation. They should expect the same checks as the legal owner. This means that they should be willing to share their bank accounts, pay slips and other means of evidence with the lender.
As you’ve learned, the non-legal owner is going to have no claim over the property. For this reason, the lender is likely to insist that they speak to a solicitor and get independent legal advice before they commit to the loan. They will likely request that a disclosure is signed by the non-legal owner and seen by the underwriter before they sign off your mortgage offer.
To begin with, you will need to speak to one of our mortgage experts. They will be able to start mortgage calculations for you right away. If you are specifically looking for joint borrower, sole proprietor mortgages because you’ve not had luck elsewhere, then it is important that the person who is applying with you joins you on the call.
To begin with, you will need to speak to one of our mortgage experts. They will be able to start mortgage calculations for you right away. If you are specifically looking for joint borrower, sole proprietor mortgages because you’ve not had luck elsewhere, then it is important that the person who is applying with you joins you on the call.
EXCELLENT
Based on 137 reviews
Posted on Google
Tracey J2nd time using prospect mortgages and would highly recommend them. Superb fast and easy service from start to finishPosted on Google
vas nMatt is brilliant. Very well organised, sends timely reminders and goes through all the details. Not pushy.Posted on Google
julie brodieMatt was able to give all the advice I needed in a reassuring and knowledgeable way. Answered all my questions, reiterated when required. Need advice - have confidence in MattPosted on Google
Kiemia FarrowWe have had such a fabulous experience with Phil from start to finish. He was so detailed, knew how best to support us and advised us in as many ways he could. He helped us secure a great rate mortgage despite it being a challenging time in the market and we are very grateful for his help. Highly recommend. Thanks Phil! :-)Posted on Google
Ash DenverWas given Phil's details by a friend, he was excellent. Kept me informed all the way through, answered all my questions (I am a first time buyers so I had MANY) and helped me through the process. Highly recommend.Posted on Google
Luke BalzanMatt Lee was brilliant, the process was straight forward. Quick telephone call followed by sending a series of documents was the only leg work involved from my side. Matt worked his magic and within 4 weeks I had an acceptance letter from the bank. I highly recommend prospect tree if you have an overtime heavy salary as they will utilise lenders who view the overtime as regular income. The service was overall stress free and reasonably priced. I was also offered competitive market interest rates. Great advice given and there was no pressure selling for any additional services. Top service.Posted on Google
David HoughtonGraeme was friendly and helpful in finding is the best mortgage available.Posted on Google
Noel KernanThe team where on the ball from the very start, even on a Friday afternoon when the Lenders where changing rates with 90 mins to secure lower rate and got the necessary paperwork done and secured. saved me 1.5% keep up the good workPosted on Google
Ryan AlboroughPhil has been a fantastic broker for us for a number of years now. He's approachable, friendly and explains things with great care and attention to detail. Will continue to use his services for many years to come.