What is a Joint Borrower Sole Proprietor (JBSP) mortgage?

A Joint Borrower Sole Proprietor (JBSP) mortgage is a type of home loan designed to help someone buy a property when they can’t borrow enough on their own, either because their income is too low or they wish to borrow more than they would be able to alone.

Key things to know

• There is only one legal owner, the person who is on the property deeds - the “Sole Proprietor”. This is usually the person that wants to live in the property.
• There are multiple borrowers on the mortgage, which depending on the lender can be up to 3 or 4 people if required. The “Joint Borrowers” help boost the affordability calculations due to the additional income.
  

Why would I consider a JBSP mortgage?

JBSP mortgages are often used by individuals with parents willing to help their child/children buy their first home.

It can also help people who have high deposits but low earnings, or someone who has irregular or self-employed income.

How does it work?

1. The applicant (Sole Proprietor) applies for the mortgage with one or more supporting borrowers. This is often a parent or another family member.
2. The lender assesses the combined income of all borrowers when calculating affordability.
3. The mortgage is issued in the name of all borrowers, but only the Sole Proprietor is on the property deeds.
4. This avoids additional Stamp Duty Land Tax charges for the supporting borrower (such as a parent) who may already own a property.
5. All borrowers are legally liable for the mortgage repayments, even though only one owns the property.

Nick Bernard from Torc24, our recommended mortgage advisors says “A JBSP mortgage can be an effective way for first time buyers to get onto the property ladder with help from family.

“It allows parents, relatives or a significant other to support a buyer by adding their income to the mortgage application, without having to go on the property deeds themselves.

“This means the buyer gets access to a bigger loan, but those helping avoid second property stamp duty charges and don’t complicate future ownership. It’s a flexible option that gives buyers a chance to purchase sooner than they might otherwise be able to on their own.”

David Dee, Sales Manager at Fairview New Homes says “We have seen an increase in first time buyers using JBSP mortgages in the last 12 months, especially where parents want to help their children onto the property ladder but don’t necessarily have the funds available to gift a deposit. This is an excellent way for them to do so.”

If you’d like to know more about how a Joint Borrower Sole Proprietor mortgage could work for you, please speak to a member of our sales team or call our recommended mortgage advisors Torc24 for a free, no obligation appointment.

*Mortgages are subject to eligibility. The offer is subject to the lender's final approval and verification of your financial details.