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Joint Borrower Sole Proprietor Mortgages for First Time Buyers

Buying a home is stressful, exciting, daunting, and above all, a huge financial burden. But what if it didn’t have to be?

Unfortunately, although we can’t help with the emotional roller coaster of buying a new home, we can help with the financial side of things, by offering you a Joint Borrower Sole Proprietor (JBSP) mortgage.

JBSP mortgages allow someone to give you a financial helping hand with your mortgage and the best part is that they won’t own a single blade of grass, roof tile, or door handle on your property; it’ll all be yours.

Let’s look at what makes a JBSP mortgage tick.

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What is a Joint Borrower Sole Proprietor Mortgage?

Homeownership is the dream of so many people that simply haven’t got the means to climb on the first rung of the property ladder.

JBSP mortgages allow the financial responsibility of paying for a property to be shared by both you and a parent, family member, or close friend.

This means that you will both be expected to repay the mortgage jointly. This is important because a mortgage is one of the biggest financial burdens you will likely have in your life, so the responsibilities need to be made crystal clear to all parties before proceeding.

The main advantage of a JBSP mortgage is that whoever boosts your spending power with their own income, won’t have a stake in your home; they won’t own any of it.

How does a Joint Borrower Sole Proprietor mortgage work?

It’s important to be clear with whoever becomes the joint borrower that they will not own a part of the property. Their role is solely as a way to enable you to reach the borrowing threshold for the property you hope to buy.

You don’t need to be aware of all the technical aspects of getting a mortgage to take advantage of a JBSP mortgage, but there are a few essential things you need to keep in mind.

During the application process, both you and the borrower will need to provide comprehensive details about your incomes and a credit check will be required. The lender (us) will then look at both incomes and assess exactly how much you’ll be able to borrow for a mortgage.

Who is a JBSP mortgage for?

If you are:

A first time buyer – If you’re a young person looking to buy your first home, help from others is often needed.

Self-employed – Inconsistent incomes due to freelance or self-employment make it more difficult to get a mortgage.

A person with limited savings – You may have been unable to build up the substantial savings required for a deposit on a house.

You’ll benefit from having the joint borrowing power to help meet the affordability criteria of the house you want.

What are the pros and cons of a Joint Borrower Sole Proprietor mortgage?

When it comes to getting a mortgage, you need as much help as possible, especially if you’re a first-time buyer. How can you know if a JBSP mortgage is right for you?

Advantages:

Borrow more – Significantly increase the amount you can borrow for a mortgage. Opens up a whole new level of property ownership by unlocking homes you would not be able to afford without the extra help.

Get a deal quick – If you’re having trouble saving up enough money for a deposit, utilising the power of joint borrowing enables you to be ready to apply for a mortgage right now.

Property ownership – You retain complete ownership of the property. The borrower only helps financially and has no claim to your home.

Risks:

Joint liability – In the case that any mortgage payments are missed, both you and your financial helper are accountable. This means that credit scores can be affected and much more serious consequences if payments continue to be missed.

Restricted lending options – We’ll carry out exhaustive searches to find the best deal though with a JBSP mortgage you may have less lender options as many banks don’t offer them.

Why choose The Mortgage Broker to get your JBSP mortgage?

There’s no group of people that could use help when looking for the perfect mortgage more than young, first time buyers.

We know the frustration of feeling hopeless in the face of daunting house prices and a spiralling cost of living.

Our experts will search tirelessly for the right mortgage for you and we’ll keep you informed and in the loop the entire time. We don’t just look at the high street lenders either; thanks to our many years of experience in the sector, our advisors have access to lenders you simply won’t be able to find anywhere else.

Whether you need the financial boost or are buying your first home, we’ll find a deal that suits you. By working with us we’ll be able to present you with a series of options and competitive rates designed to suit your unique circumstances, and our experts will ensure that all parties are aware of their responsibilities, so one will feel like they have been treated unfairly or taken advantage of.

Ready to get in touch? Contact us now for a free consultation.

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JBSP Mortgage FAQs

There are many to choose from; some of the most popular are:

  • Barclays
  • Skipton Building Society
  • Accord Mortgages
  • Bath Building Society

And many more. Although you won’t have access to as many lenders as usual for a JBSP mortgage, there will be more than enough to choose from!

First-time buyers get a relief on stamp duty on homes valued up to £425,000. Because the person lending you their money doesn’t own any part of the property, it won’t affect your stamp duty calculation at all.

A guarantor mortgage is similar to a JBSP mortgage in that you will have help from a third party. Guarantor mortgages will only expect the friend or family member to guarantee the loan, not contribute to it. JBSP mortgages take both you and your contributor’s income into account to help with affordability and share repayments.