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Joint Borrower Sole Proprietor Mortgages

Ross Jones from Home Financial talks us through Joint Borrower Sole Proprietor (JBSP) Mortgages.

What is a JBSP mortgage?

A Joint Borrower Sole Proprietor mortgage is where you have multiple people on a mortgage, but you only have a certain number of people on the deeds of the property. For example, if a First Time Buyer wants to buy a property, but their income wouldn’t support a mortgage application, a JBSP would allow up to four people on the mortgage application, but they won’t go onto the deeds of the property. This is similar to how a guarantor would act on a rental property.

How does a JBSP mortgage work?

We can help guide customers to those lenders who offer this type of mortgage, and our professional advice really comes in handy, because we can help to guide you through that process.

With regards to a JBPS mortgage, you apply in the same way as any other standard mortgage, but you need to stipulate who is going to be on the deeds, and who is just supporting the application. The person that takes on the mortgage but isn’t going to be on the deeds, would need to take independent legal advice in relation to their obligations and the potential pitfalls.

What is the criteria for a JBSP mortgage?

Usually there needs to be some sort of family connection to the person or people supporting your mortgage application. There is also a maximum age limit for those who can support the application, for example, somebody over the age of sixty may not be accepted on a twenty five or thirty year mortgage. The key criteria to to be aware of are quite standard, such as credit history, affordability, the usual requirements, on a and a Joint Borrower Sole Proprietor application.

Who’s liable for a JBSP mortgage?

Much like any other joint mortgage, both or all people that are named on the mortgage would be liable for that loan. The key variation is that those people are liable, yet won’t be on the deed to the properties.

Do you pay Stamp duty on a JBSP Mortgage?

It’s very subjective and completely depends on the scenario. One of the main benefits of a JBSP is that if the person supporting the mortgage already has their own property, they would pay a second property rate of stamp duty if they were going onto the deeds. As they’re not going onto the deeds, this mitigates that stamp duty.

What’s the difference between a Joint Mortgage and a JBSP mortgage?

A joint mortgage and a JBSP is basically the same thing, but typically, if you got a joint mortgage, you’d both be on the deed to the property.

What’s the difference between a Guarantor Mortgage and a JBSP Mortgage?

A guarantor Mortgage is the slightly old-fashioned version of this, but it operates in a very similar way. The JBSP schemes approach having a guarantor on a mortgage in a slightly different way, as the person supporting the mortgage to help out, needs to be able to get a mortgage in their own right, much like the person that’s actually being supported.

What are the advantages and disadvantages of JBSP mortgages?

The main main advantage is possibly making something happen that you might not have thought would be possible. Many people just assume that they cannot afford to buy a property in the area they love, without considering other options, such as this one. The main disadvantage is that if you’re helping somebody, and that mortgage goes into default, it’s important to be aware that that’s your responsibility, just as much as it is the owner’s. This is why it’s so important to seek independent legal advice.

The market now is full of options in terms of schemes that can help people out and get people onto the property ladder, JBSP is just one of them. There are also Shared Ownership, Family Assist, and Springboard Mortgages, where somebody can link their savings to a mortgage without putting them against the cost of the property. So ensure you speak to a professional, get the advice you need and be sure you’re aware of all of the options that are available to you.

Joint Borrower Sole Proprietor Mortgages

Ross from Home Financial NW has helped me through every step of the mortgage process over the last few months, a process made much more difficult owing to the fact I am self-employed. He has expertly guided me through every stage of my application and helped me to secure a mortgage for a new house. Throughout the last few months he has provided amazing expert advice in such a friendly way, it has made the entire process super easy and stress free! I would highly recommend Ross to anyone I know.

Joint Borrower Sole Proprietor Mortgages

Can honestly not recommend Ross Jones at homes financial enough, he’s been amazing our case was far from simple without the added issues from covid. He’s worked so hard to source us the best deal and to offer the best advice and guidance he could give, nothings been too much trouble. He fully guided us though the process supported ours decisions with data advice. Ross is Polite, professional, hard working, truthful and honest. Always quick responses to email and calls and goes that extra mile. I’ve already recommended Ross to multiple friends and family. He is an absolute credit to your team, thank you so much.

Joint Borrower Sole Proprietor Mortgages

Fabulous service! This our second time using home financial and wouldn’t go anywhere else. Ross is very knowledgeable and extremely supportive through the whole process. Huge thanks for all your help 🙂

Joint Borrower Sole Proprietor Mortgages

Ross and the team at Home Financial have been brilliant, can’t recommend them enough. They went above and beyond in explaining the process and putting us at ease. 5⭐

Joint Borrower Sole Proprietor Mortgages

A fantastic company to deal with Lindsey was amazing and went out of her way to answer our questions. She made the whole process easy and hassle free! Will continue using Lindsey and this company in the future.

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