Joint Borrower Sole Proprietor

Our joint borrower sole proprietor mortgage advice

A joint borrower sole proprietor mortgage or JBSP mortgage lets you buy a property with the help of up to four people, including your parents. 

The additional applicants make it easier to qualify for a mortgage because you have additional income streams to help meet lender’s affordability rules.

You can also select which of the four applicants will actually own the property, which can help with reducing stamp duty costs, and eliminate capital gains liability.

Joint borrower sole proprietor mortgage arrangements are often used by parents who want to help their children get on to the property ladder.

All borrowers are liable for the mortgage payments, which lowers the risk for banks.  For this reason a degree of trust needs to exist between all parties, and it is also wise to plan how to release the non-owning applicants from the commitment as soon as possible.

Long mortgage terms are available because terms can be split where the part the younger applicants can afford to pay can be spread over 40 years.  Some banks will also lend beyond normal retirement ages expected of the parents.

Banks that offer joint borrower sole proprietor include Accord Mortgages, Barclays Bank, Hinckley & Rugby Building Society, Generation Home, Metro Bank, Principality Building Society, & Skipton Building Society.