Joint Borrower Sole Proprietor (JBSP) mortgages
A JBSP mortgage enables the applicant’s parent(s), or sibling to join the mortgage, in order for their income to be taken into consideration when it comes to assessing affordability. There is no need for the parent(s) or sibling to be added to the title deeds, meaning that your client(s) have sole ownership of the purchase property. This also means that parents who already own their residential home, will not have any further implications in relation to Stamp Duty that may have occurred if they did have to appear on the deeds. Applications where siblings are joining the mortgage are accepted whereby the sibling is already a homeowner.
Who is entitled to do a JBSP mortgage?
Our Joint Borrower Sole Proprietor mortgages are accepted for applicant/parent relationships. With the intention being, the parent(s) are to support the applicant(s) as a short-term solution until they are in a position financially to take over the mortgage as normal.
Reverse JBSP cases, where it is in fact the child who is supporting the parent(s), will be considered on a case by case basis.
Sibling supported applications are only permitted where the sibling is an existing homeowner.
Things to consider
- All borrowers must take separate and independent legal advice as part of the conveyancing process.
- All borrowers must sign the Mortgage Deed in front of the solicitor acting as the conveyancer. This must be on a face to face basis.
- Release of one of the borrowers from the mortgage will require approval from the Society and be reliant on the mortgage being affordable by the remaining parties. Any legal costs incurred will be the responsibility of the borrowers.
- The affordability calculation takes into account the additional parties outgoings i.e. they must have disposable income that could be used towards the mortgage should the need arise as they are jointly and severally liable for the debt.
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