Joint Borrower Sole Proprietor (JBSP) mortgages can offer a family solution to affordability.
Who can support a Joint Borrower Sole Proprietor arrangement (JBSP)?
- For owner occupier arrangements, family members who can provide support include parents, grandparents, siblings and aunts / uncles
- For a Buy to Let arrangement, a spouse or parent can support
- For a reverse JBSP, adult children can also support their parents.
Benefits of Joint Borrower Sole Proprietor (JBSP)
- Up to four incomes can be used for affordability – one or two borrowers (who will own and occupy the property) can be supported by up to two other family members
- Supporting family members will not be liable for stamp duty on a second home – they will be listed on the mortgage but will not own the property.
Generous age limits apply
For Joint Borrower Sole Proprietor arrangements generous age limits can apply for the main (occupying) borrowers.
• Owner occupier JBSP arrangement:
– Repayment mortgages, up to a maximum age of 95 at the end of term
– Interest Only up to a maximum age of 89 when the loan commences
– Up to 80% LTV.
• For a Buy to Let mortgage arrangement
– Maximum age of 89 when the loan commences
– Up to 70% LTV.
• If any of the loan is on an Interest Only basis, the mortgage must finish before either the expected retirement age of the eldest supporting (non-occupying) borrower or by age 70, whichever is sooner.
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To discuss how you can help a family member get a mortgage, please contact us.