Joint Borrower Sole Proprietor
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Joint Borrower Sole Proprietor (Part 1)
Rebecca Ward and Matt Grix explain how a Joint Borrower Sole Proprietor mortgage can help boost your borrowing power.
Approved by The Openwork Partnership on 02/04/2025.
What is a Joint Borrower Sole Proprietor (JBSP) mortgage and how do they work?
A Joint Borrower Sole Proprietor mortgage is where multiple people apply for a mortgage, but only one person is the legal owner of the property. They are the ‘sole proprietor’.
The other applicants are jointly responsible for the mortgage payments. So all the borrowers are equally responsible for repaying the mortgage, but legally only one person is considered the property owner.
What responsibilities do the joint borrower and the sole proprietor have in a JBSP mortgage?
They’re both jointly responsible for the mortgage. If one person isn’t paying the mortgage, the other person has to pay.
It can all be paid by one person, but they’re equally responsible from the lender’s point of view. In terms of ownership of the property, there is just one single owner.
Who is eligible for a JBSP mortgage? Can anyone get one? Can I get a JBSP mortgage as a First Time Buyer?
A JBSP mortgage can be suitable for younger people, families and even elderly parents. To be eligible, they all apply together as borrowers. As with any mortgage, the lender is looking for stable incomes.
Having multiple applicants can increase the chance of approval and boost borrowing capacity. It can help younger people buy a home sooner. Or, it can help elderly parents, if they need to secure a mortgage with the help of their adult child.
It works well for First Time Buyers, who might need financial support. It’s ideal for young professionals who want to borrow more – their incomes might be going up in the future, but they need some help at the beginning.
People with bad credit, who can’t borrow on their own, might need a helping hand with a family member who’s got a better credit background – and a JBSP mortgage can work well in this situation.
What criteria do you need to meet for a JBSP mortgage?
Every lender has their own unique criteria. As with any mortgage, certain things might fit with one lender that wouldn’t necessarily fit with another. A mortgage advisor will guide you on the options.
If one person has a really minimal income, they can use a second person’s income to increase what they could borrow.
Do JBSP mortgages require a larger deposit compared to standard mortgages?
No, not necessarily. A JBSP mortgage usually has similar deposit requirements to a standard mortgage, but those can vary from lender to lender. That’s why you should speak to a good mortgage advisor.
The amount of deposit you have will determine which lenders would consider your application. A large deposit can improve your Loan to Value ratio and lead to better interest rates. It’s very much along the same lines as a standard mortgage.
Deposit sources are the same as for a standard mortgage. It could come from savings, a gift from family or an inheritance. There’s no difference between a JBSP deposit and a standard mortgage deposit.
Do you pay stamp duty on a Joint Borrower Sole Proprietor mortgage?
The important thing to note with stamp duty is that it’s treated as though the sole proprietor, the person owning the property, is making a purchase in their sole name.
If they were purchasing in their sole name and they would be liable to pay stamp duty, then yes, they’d pay stamp duty on a JBSP mortgage.
One of the key benefits of this mortgage type is that if the second person on the mortgage, the joint borrower, owns a background property, they would normally have to pay additional stamp duty. With a JBSP mortgage, that person has no stamp duty liability so the additional duty doesn’t apply.
It’s always worth speaking with a tax advisor and solicitor just to make sure you fully understand any tax implications.
Can you have a sole mortgage on a joint property?
That is the reverse of a JBSP mortgage. In short, the answer is no, because you cannot have a property that is jointly owned with a sole mortgage on it. That makes it too difficult for a lender should they have to repossess in the future.
What’s the difference between a joint mortgage and a JBSP mortgage?
On a joint mortgage, you would both be on the mortgage and both own the property. With a JBSP mortgage, multiple people are on the mortgage and you’re still equally responsible for that, but the property is just owned in one single person’s name – the sole proprietor’s.
What’s the difference between a guarantor mortgage and a JBSP mortgage?
On a JBSP mortgage, the parent or family member of the property owner can contribute to the mortgage right from the start. With a guarantor mortgage, the guarantor would only be liable for the debt if the applicant is unable to make the mortgage payments.
Guarantor mortgages nowadays are very few and far between. They aren’t offered by many high street lenders.
What are the pros and cons of a Joint Borrower Sole Proprietor mortgage?
One of the key reasons why someone would take out this type of mortgage is to increase how much they might be able to borrow. They can add a third party to the mortgage and use their income to increase the borrowing.
They could then potentially purchase a higher value property. Not adding a second person as an owner of the property has stamp duty benefits.
It’s important to note that the joint borrower, who doesn’t own the property, could find that they’re limited on how much they could borrow on a future mortgage. The JBSP mortgage they’ve joined will be counted as a credit commitment by future lenders.
A good mortgage advisor would give advice and recommendations on whether it’s going to be suitable for you.
What else do we need to know about Joint Borrower Sole Proprietor mortgages?
A JBSP mortgage is a really good way for someone to increase their borrowing capacity if they otherwise wouldn’t be able to purchase a property. These mortgages are quite niche, but they have grown in popularity in recent years.
They are particularly popular among First Time Buyers and families assisting younger members onto the property ladder.
There are legal and tax implications as we’ve said, so you need to take advice. A key consideration is that all lenders require the joint borrower to take independent legal advice.
That confirms they are fully aware of their obligations to the mortgage and that they’re not being pressured into it. It protects both the other borrower and the lender.
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
Approved by The Openwork Partnership on 02/04/2025.
Speak To An Expert
Our highly experienced Advisers are ready to help you with either buying or remortgaging a home, protecting your property and lifestyle along with saving you time and effort, ensuring you have a competitive deal right for you.
Joint Borrower Sole Proprietor Mortgage (Part 2)
We continue the conversation on Joint Borrower Sole Proprietor (JBSP) mortgages with Jess Kendrick..
Podcast approved by The Openwork Partnership on 25/02/2025.
Is there a Joint Borrower Sole Proprietor mortgage age limit?
There’s no age limit as such, but the term of the mortgage would be based on the eldest applicant’s age.
For instance, if the eldest applicant is age 50 at the time of application, the maximum term would be 20 years for the majority of lenders – taking the applicant up to the age of 70.
They may allow the eldest person to go to the age of 80, if the occupying borrower covers 70% of the total loan request.
One lender can consider no maximum term, if the income being used is sustainable for the term of the mortgage, but as always it is best to get professional advice on the most suitable option for your specific scenario.
What documentation is required for both the Joint Borrower and the Sole Proprietor in a JBSP application?
Proof of income is needed, whether applicants are employed or self-employed, plus bank statements showing salary being deposited, income and expenditure. You will also need identification. There could be additional documents that the lender could request from any applicant.
Many of the lenders offering Joint Borrower Sole Proprietor mortgages may also require independent legal advice for the party not going on the property deeds.
Are there restrictions on the types of properties that can be purchased with a JBSP mortgage?
There are no restrictions as such, but non-standard construction could cause a problem. Lenders are happy with standard construction properties, flats, apartments and new build properties.
The exclusions would be around second home purchases, discounted or family purchases, Buy to Let, and a JBSP mortgage wouldn’t be acceptable in conjunction with any other lending schemes, such as shared ownership or Right to Buy.
Can the joint borrower be added after the mortgage has already been taken out?
Absolutely. If the owner or occupier wishes to add an applicant on, known as the non-proprietor, this will be a remortgage. The non-proprietor will be required to get legal advice. If any additional borrowing is needed, this must be for the benefit of the main borrower.
Can I get a JBSP mortgage with my parents? Can I get a JBSP mortgage with my children?
Yes – there are no restrictions around the relationship between the main borrower and the supporting borrower, but the main borrower must reside in the property.
Can I get a JBSP mortgage with my siblings or friends?
Yes, there are no restrictions at all. It can even be your next-door neighbour, if they’re willing.
How does having multiple joint borrowers affect a JBSP mortgage application? Are there limits on the number of joint borrowers in a JBSP mortgage?
The majority of lenders will accept the main borrower and three supporting borrowers on an application – a total of four applicants in total.
This could also be two main applicants, maybe a couple, and one or two supporting borrowers as well, like parents or, as I said, next door neighbours.
Each income source can be considered, but any expenditure would also need to be taken into account. So, for instance, if a supporting borrower has any current mortgages, rental property, credit agreements and living costs, these will all be factored in.
Even though three supporting borrowers are named on the actual mortgage, they’re not named on the deeds – so they do not own the property. Only the main borrower does. The others are only there to support the mortgage.
Are there additional fees or costs associated with taking out a JBSP mortgage?
The only additional cost is whether the lender will charge a product fee – but there will also be an option for a product with no fee.
There’d be a fee for a standard valuation, which is for mortgage purposes only, plus solicitor fees, fees if you’re using a broker, and your moving costs, along with any of the non-proprietor’s legal costs. There could be an additional cost for the independent legal advice for the non-proprietor.
Can I get a JBSP mortgage with bad credit?
It would be all about passing credit scoring, which is done at a Decision in Principle stage – right at the beginning of applying for a mortgage.
It would also be dependent on what type of adverse is on a credit file, how long this has been registered and whether it’s satisfied. We can sometimes appeal a Decision in Principle if it’s declined due to credit score, if it fits lenders’ criteria.
We also have lenders that do a credit check rather than a credit score, which is great for First Time Buyers that have not had any credit commitments. They may still be living at home with parents – so they’ve got a low credit score because there’s just no footprint for them. Certain lenders see that as a positive.
How does remortgaging a JBSP mortgage work?
There are two options. You can go from a standard mortgage and remortgage to a Joint Borrower Sole Proprietor, by adding a non-proprietor borrower as a boost to borrow more.
If you’ve already got a current Joint Borrower Sole Proprietor mortgage in place, and you could now afford the mortgage in your own right, you could look at remortgaging to a standard mortgage and removing the non-proprietor.
What else do we need to know about JBSP mortgages?
Just a bit of advice – when it comes to Joint Borrower Sole Proprietor, it would be best going to a broker because we know the lenders’ criteria. We can hold your hand throughout the process.
As I said before, the main purpose of a JBSP mortgage is really an income boost to support borrowers onto the property ladder. The joint borrowers are not on the mortgage deed, so that you’re only there for assistance with the mortgage.
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
Approved by The Openwork Partnership on 25/02/2025.
Speak To An Expert
Our highly experienced Advisers are ready to help you with either buying or remortgaging a home, protecting your property and lifestyle along with saving you time and effort, ensuring you have a competitive deal right for you.
Joint Borrower Sole Proprietor Mortgage (Part 3)
Amanda Chapman and Matthew Metcalf answer more of your questions on Joint Borrower Sole Proprietor (JBSP) mortgages. Episode three of three.
Podcast approved by The Openwork Partnership on 07/05/2025.
Can I use a JBSP mortgage to buy a second home or holiday home?
This scenario is a little more niche. It’s not just the standard Joint Borrower Sole Proprietor mortgage and so slightly fewer lenders may consider this.
The circumstances need to make sense to the mortgage companies. If so, it is definitely possible to use a JBSP to purchase a holiday home or second home.
Does the joint borrower have to live in a different property?
Normally they do, but they don’t have to. The most standard application of Joint Borrower Sole Proprietor is where parents are assisting children. More often than not the parents live in their own property, and the children will live in the home they are buying.
But you could all live in the same property – you would just need to sign a disclaimer from the lender to allow that to happen. One or two lenders may not allow this, as most joint borrowers already have a home.
Can I switch from a standard mortgage to a JBSP mortgage?
You could. It depends what the switch is and what we’re going for. If you’re selling a property and purchasing somewhere new, it’s a brand new mortgage.
You might sell a home in your sole name and buy somewhere jointly with somebody else. It would work in exactly the same way. It’s definitely possible to and switch from owning one home in one name and purchasing the new one with a JBSP mortgage.
Or, you might be staying in the same home and looking to potentially remortgage to a JBSP – that can be done as well. A few more rules apply. Matt has seen this a couple of times recently, actually, with young couples that separated.
Both young ladies are staying in the property and the parents have got involved to buy the partner out. It’s going from a standard residential joint mortgage to a Joint Borrower Sole Proprietor mortgage, on the same property.
How do interest rates compare for JBSP mortgages? Are there any differences here?
They’re not too dissimilar, possibly fractionally higher, but there’s not a lot of difference from standard residential rates.
Some lenders have specific Joint Borrower Sole Proprietor mortgages that are set apart from other deals. But often you could just choose from a lender’s standard range.
Is it possible to use a JBSP mortgage for Buy to Let properties?
It’s definitely possible. Not all lenders are happy doing it that way – the majority like it to be on a residential basis, but it’s something they will consider.
It won’t work quite the same way because the property is going to be let. The options may be limited. In the whole marketplace of lenders, only a handful do Joint Borrower Sole Proprietors – and only a couple of them will entertain Buy to Let on this basis. That might change in the future, but as of today, there are only a couple [Correct at the time of recording this episode in April 2025.]
What happens if the joint borrower passes away or can’t pay the mortgage?
It’s similar to a normal residential mortgage, to be honest – you have the same responsibility. We would discuss the implications of this happening at the outset of any mortgage type, because the implications are the same.
If somebody passes away, the remaining person still has the responsibility to pay the mortgage. If the person living in the property passes away, the parent or joint borrower would still be expected to either pay the mortgage or sell the property to clear the debt. It’s no different to a standard residential mortgage.
It’s not nice, but we do have to deal with people in this type of situation – and not necessarily on a Joint Borrower Sole Proprietor mortgage. We can always help you contact the mortgage company to let them know and keep up communication so they know what’s happening.
Can I get a JBSP mortgage if one borrower has an existing mortgage?
Yes, and again it’s all down to affordability. The numbers would be crunched as normal. Joint borrowers and proprietors are looked at in the same light with affordability as for a standard residential.
For example, if the joint borrower – the parent – already has a mortgage, and they’re looking to support their children, lenders will factor in their financial responsibilities. That could be a mortgage, a loan, credit cards… they’re all included. Lenders have to confirm that it’s affordable.
Are there any special considerations for older joint borrowers in a JBSP mortgage?
Again, it’s all about affordability. Any mortgage is based on the oldest person’s age, how long they plan to work, their income and how that will continue going forward.
Even though with JBSP the plan might just be for someone to join the mortgage for a short time, the lenders still assess it as though they will stay on for the ful length of the mortgage.
Being based on the oldest borrower’s age may reduce the term available. Some lenders may allow it to go to age 80 or 85, but others are considerably lower than that – perhaps 75.
Most commonly with clients for Joint Borrower Sole Proprietor, they’re looking at a stopgap. You start off with the parents helping you and the term might be 20 years. That pushes the cost up, so as quickly as possible we would look to move from JBSP to a standard residential – as soon as it’s affordable for the person in their own right. They can then extend the term and it becomes cheaper.
It’s a really good vehicle, Joint Borrower Sole Proprietor, but it can limit the opportunities at times.
You’ve both demonstrated this throughout the episode, but how can a mortgage broker help? Any final thoughts?
Just to highlight that we have access to various systems to help us. Once we’ve got an idea of your wishes, we find a deal that fits for you and meets the lender’s criteria. We aim to secure the most competitive rates available.
We know where to go, and from doing JBSP mortgages in the past we’ve got experience to bring to the table. When we’re talking to clients, we can explain how it’s worked for others.
It’s harder for a client to go and find this themselves. They could go to their bank – but that bank may not do Joint Borrower Sole Proprietors. Our experience in situations like this always helps. We’re in a good position to offer clients the right advice tailored to their needs.
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
MOST BUY TO LET MORTGAGES ARE NOT REGULATED BY THE FINANCIAL CONDUCT AUTHORITY.
Approved by The Openwork Partnership on 07/05/2025.
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