Joint borrower sole proprietor mortgages

With a guarantor mortgage, your family member agrees to repay your loan if you cannot. They will usually be required to use their home or another valuable asset as security for the mortgage.

They are very similar to a JBSP mortgage; however, for a guarantor mortgage, the supporting family member is only liable for the mortgage payments if you’re unable to keep up with them.

Springboard mortgages are very similar to guarantor mortgages. A friend or family member uses their savings as a deposit for your mortgage, but the money is held in a savings account rather than go towards the purchase.

At the end of a set period, usually three or five years, they get the money back with interest. The money is there as a safety net in case you are unable to keep up with the repayments. If this happens, the lender can hold onto the savings for longer or use the money to cover the payments.

This is where a close relative or loved one provides the deposit for your purchase, allowing you to buy a home. If the deposit is gifted, it means it won’t need to be paid back, but you could agree to repay the deposit privately. 

When you provide a deposit for a house purchase, the mortgage lender may ask where the funds have come from. That means the family member may need to provide documented evidence of the gift and confirmation that it doesn’t need to be repaid.

The proprietor is the only legal owner of the property with a JBSP mortgage. Their name alone will appear on the title deeds, and the other borrowers will hold no legal rights to the property, including any increase in value.

Stamp duty is still applicable; however, the liability only applies to the proprietors. This is a big advantage of JBSP mortgage, as it means you can take advantage of first-time buyer stamp duty rates, even if the supporting borrowers are already homeowners.

The main difference is that not all the borrowers are owners of the property when you take out a JBSP. With a joint mortgage, all borrowers will be listed on the title deeds and will be liable to pay stamp duty.

As a supporting borrower on a JBSP mortgage, you will have no legal claim to the property but will share the responsibility of repaying the loan.

Most lenders will accept four applicants and consider all four incomes when assessing the application. Usually, only one applicant is considered the proprietor of the property.

Yes, you will still need to provide a deposit to get a joint borrower sole proprietor mortgage. How much deposit you need will depend on the lender, but some will accept as little as 5% of the purchase price.