Joint Borrower Sole Proprietor Mortgage
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Joint Borrower Sole Proprietor Mortgage (Part 1)
What is a Joint Borrower Sole Proprietor (JBSP) mortgage and how do they work?
They’re very similar to guarantor mortgages. The sole proprietor is the owner – although it’s not actually sole – it could be a couple, friends buying together or siblings. The joint borrower is effectively the guarantor.
You use the joint borrower’s income to potentially borrow more. The joint borrower is normally a parent or a brother or sister, but it could also be a friend or a boss. Alternatively, it might be the other way around – where the parents are taking a mortgage into retirement and their son or daughter is helping them out.
A Joint Borrower Sole Proprietor mortgage basically facilitates First Time Buyers in getting stamp duty incentives, because the joint borrower isn’t on the deeds.
What responsibilities do the joint borrower and sole proprietor have in a JBSP mortgage?
It’s not that different to a normal mortgage in terms of responsibilities. The people on the mortgage, which includes the joint borrower, are responsible for paying it back.
If the sole proprietor doesn’t pay the mortgage, the joint borrower needs to step in and pay.
If they don’t, you all run the risk of ruining your credit profiles. As per the classic old phrase, your home may be repossessed if you do not keep up repayments on your mortgage.
Who is eligible for a JBSP mortgage? Can I get a JBSP mortgage as a First Time Buyer?
You can get them as a First Time Buyer – they’re the most common user of this type of product. However, you can also get a JBSP if you’re looking to move homes.
Sometimes they’re used for a couple parting company following a divorce. They’re also used by parents taking a mortgage into retirement, where their wealthier kids are helping them out.
What criteria do you need to meet for a JBSP mortgage?
There are always lending criteria attached to the product, but anyone may be eligible. We’ve had scenarios where students have taken a Joint Borrower Sole Proprietor and they haven’t got an income at all.
The parents are helping them to get on the property ladder and they rent out a room to another student. The lender will use the buyer’s income and the joint borrowers’ income to assess the lending amount available.
Where we get stuck into the challenge, making phone calls and using our expertise, is in considering the joint borrowers’ financial commitments – for example, any debt, bills or mortgage they might have. They’re going to need to support their own household as well as helping the buyer with theirs.
The other factor that comes into play is age. Parents are always older than their kids, obviously, and a parent that’s 60 might still be working – but the mortgage will move into a retirement income scenario. There might be age caps on some JBSP mortgages, but there are lenders with no age limits. This is definitely a product where you need some advice.
Do Joint Borrower Sole Proprietor mortgages require a larger deposit compared to standard mortgages?
No, not really. There is one product on the market that just requires 1% deposit [correct as of February 2025]. Outside of that, the market really opens its doors with a 5% deposit, whether it’s a JBSP mortgage or a conventional one. Products improve if you can achieve a 10% deposit or more.
Do you pay stamp duty on a JBSP mortgage?
The stamp duty is on the purchase of the property itself, not on the mortgage per se. Stamp duty is payable to HMRC.
The key factor with a Joint Borrower Sole Proprietor is that the sole proprietor goes on to the deeds of the property. If there are any stamp duty incentives, like the current First Time Buyer offer that can save you up to £5,000, you’re going to benefit from that – because the joint borrower won’t own the property.
So stamp duty is payable, but you can still take advantage of those incentives if you fit the eligibility.
Can you have a sole mortgage on a joint property?
Usually, the mortgage needs to marry up with the deeds but this type of product is designed for the exact opposite of that, i.e. joint borrowers, sole proprietor. But remember, that sole proprietor could be more than one owner.
What’s the difference between a joint mortgage and a JBSP mortgage?
A joint mortgage will use the incomes of the people looking to buy the property. A Joint Borrower Sole Proprietor mortgage also adds in the income of the parent, sibling or whoever is supporting you to potentially borrow more.
In my opinion, it’s best to see what’s available on a joint mortgage compared to what’s possible on a Joint Borrower Sole Proprietor mortgage. Compare the numbers to make informed decisions.
What’s the difference between a guarantor mortgage and a JBSP mortgage?
Practically speaking, there aren’t any differences. From a lending perspective, with a Joint Borrower Sole Proprietor mortgage they’re actually underwriting the criteria as if the joint borrower is helping out with the household mortgage and bills, even though that’s not necessarily what’s actually happening.
The key element of a guarantor mortgage is that where a borrower is not paying the mortgage, the guarantor needs to step in. From a practical sense, they’re really the same, but there are technical differences.
What are the pros and cons of JBSP mortgages?
The reason you’d look at a Joint Borrower Sole Proprietor mortgage is to facilitate higher borrowing. That could allow you to keep your present property, particularly in the case of a parent borrowing with the support of their kids.
Most commonly, the product is used to borrow more and purchase a property you will be comfortable and happy to live in.
The products do carry a premium, however, over a conventional mortgage, although it’s not huge. I’d recommend you compare a conventional mortgage against a Joint Borrower Sole Proprietor mortgage. Have the numbers in front of you to make informed decisions for your circumstances and objectives.
What else do we need to know about JBSP mortgages?
A good few lenders offer them, but going direct to a bank you would be very limited. Knowledge and expertise of this area are important to get the right borrowing amount and product for your circumstances.
I’d recommend you chat with a mortgage advisor that has access to the whole of the market so they can find a solution that’s right for you and your objectives.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP WITH YOUR MORTGAGE REPAYMENTS.
SPEAK TO AN EXPERT
We will save you time by researching the market, checking that you meet the lenders criteria to find the best mortgage for your circumstance.
Joint Borrower Sole Proprietor Mortgage (Part 2)
Kevin Dunks is back to answer more of your questions on Joint Borrower Sole Proprietor (JBSP) mortgages. Episode two of two, recorded in April 2025.
Is there a Joint Borrower Sole Proprietor mortgage age limit?
Most lenders do have an age limit, but others lenders don’t, meaning that a son or daughter can potentially take out a 35 year repayment mortgage, for example, to keep the monthly payments down.
What documentation is required for both the joint borrower and the sole proprietor in a JBSP application?
Lenders request proof of income and deposit for both the joint borrower and the sole proprietor. For someone that’s employed, they’d ask for recent pay slips, and if you’re self-employed it may be two years’ tax returns. If the parent is retired, they’d want to see evidence of pension income.
Are there restrictions on the types of properties that can be purchased with a JBSP mortgage?
Not really, a JBSP mortgage doesn’t restrict the property type. If a lender is happy with the property and they do Joint Borrower Sole Proprietor mortgages, you’ll get the lending.
That said, lenders don’t necessarily have an appetite for all types of property. If it is a flat above a kebab shop, for example, or a house next to a busy pub, they may not be keen. They’re basically looking at the saleability of the property in a less proactive market.
Can a joint borrower be added after the mortgage has already been taken out?
The only circumstance where I think this might apply is perhaps if someone’s parting company with an ex-partner. Or, possibly, they may be looking to raise monies for home improvements – you’re then looking to add a joint borrower to the circumstance.
The new situation will need to meet the lender’s criteria and that lender must have the appetite to do JBSP, if you want to add that person onto your current mortgage.
You’d always have the potential option of leaving your current lender and remortgaging to a JBSP option elsewhere. However, you will need to consider any costs – particularly whether you’ve got any early redemption penalties on your current mortgage.
If you’ve got any questions, you can always reach out. We can analyse it and work out what’s best.
Can I get a JBSP mortgage with my parents? Can I get a JBSP mortgage with my children?
The most popular option for JBSP mortgages is definitely parents supporting children, but they do work the other way around.
For example, a parent might be retiring but wants to stay in their home, as opposed to downsizing or moving out of the area. They need a mortgage to be taken into retirement, and they’re using the child’s income to allow that via a JBSP mortgage.
What does need to be considered, however, is that child’s ability to obtain a mortgage in future. If they’re planning to move and borrow more money, that should be considered at the time of doing the JBSP. It’s best to discuss that now and talk about what might be happening in the future.
Can I get a JBSP mortgage with my siblings or friends?
Yes. It works exactly the same way. Lenders will look to use all the incomes as well as all the commitments to assess how much can be borrowed.
Again, it could impact your sibling’s ability to obtain a mortgage in the future. It’s always best to chat through the circumstance with us beforehand, covering present and future objectives.
How does having multiple joint borrowers affect a JBSP mortgage application? Are there limits on the number of joint borrowers in a JBSP mortgage?
Most lenders have a limit of four applicants, which is normally about system capacity, really. A common scenario is for a child to have their parents come onto the mortgage, or a couple brings their parents on.
If there are four applicants, the lender will look to use all four incomes – as well as their commitments – to get to the borrowing amount.
It might be one parent and one sibling supporting a sole proprietor. Or, the proprietors might be a couple. In reverse, if the parents are the sole proprietors and the kids are the joint borrowers, it can be mum and dad with son and daughter; or their son and their partner, or a daughter and their partner.
Are there additional fees or costs associated with taking out a JBSP mortgage?
With many lenders, the products are available from their standard range and there are no additional charges. Some lenders do actively promote JBSP mortgages, and the product might carry a slight premium on the rate, but not fees.
There might be additional fees outside the mortgage. Lenders may request that the joint borrower seeks independent legal advice, to understand their obligations.
Can I get a JBSP mortgage with bad credit?
Yes. It depends how bad the credit is. There are JBSP options available for someone who has missed occasional payments on their credit card, or for modest sized defaults or CCJs.
It’s usually best to satisfy any defaults or CCJs before applying for the mortgage. If you need advice, just reach out and we can chat through it.
How does remortgaging a JBSP mortgage work? So any differences here?
When you’re remortgaging, it does go through underwriting again, so we’ll ask for proof of income. That’s normal. It’s always best to start by chatting over your objectives and your circumstances before exploring the options.
It may be best just to do a product switch with your current lender. That isn’t regarded as a remortgage and therefore there is no need for paperwork.
Have you got any final points to highlight around JBSP mortgages?
Just that we love helping people achieve their goals and we’re always happy to have exploratory conversations. We can help you put a plan in place, either for a few months’ time or a year’s time.
If you want any help, just reach out. That’s what we’re here for.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP WITH YOUR MORTGAGE REPAYMENTS.
Joint Borrower Sole Proprietor Mortgage (Part 3)
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What you need to know…
You can get an indication of how much you can borrow by using our handy “how much can I borrow” calculator. The actual amount you can borrow will depend on your credit commitments, your regular monthly outgoings and how each lender assesses your income.
It may be possible to borrow more than our calculator shows you, that’s where the expertise of our personal advisers comes in and where our independent status benefits you.
The minimum deposit required is 5% of the property purchase price. Most lenders will allow the deposit to come from a gift and some lenders will even consider this being raised via a personal loan. There are government incentives to help boost your savings if you are a first time buyer. Depending on your circumstance you may either need to have a larger deposit or will perhaps want to put a larger deposit down, due to preferable interest rates.
Because we are independent mortgage brokers we will be able to secure you the best deal for your circumstance.
An Agreement in Principle, also known as a ‘Decision in Principle’ will be provided after affordability and credit checks have been approved. An Agreement in Principle is extremely useful to increase your confidence when viewing and offering on properties. Estate Agents will typically want to see an Agreement in Principle before presenting your offer to the seller. Our personal advisers can help you with this.
It’s a requirement of your mortgage to have buildings insurance. This covers the bricks and mortar of the property.
It’s also a good idea to take advice from your personal adviser on protecting you and your loved ones if something bad happens. For example: Life Cover, Critical Illness Cover and Income Protection.
Being accepted for a mortgage does depend on your circumstances. We are experts with all types of mortgages…. We specialise in obtaining mortgages for the self-employed, contractors, construction industry scheme (CIS) workers and those with historic adverse credit (as well as employed people of course). In all these situations we can frequently secure high street deals. Being independent and experts is a real benefit in these circumstances.
Your monthly payments will vary according to the chosen mortgage term, choice of product, level of deposit and repayment type. You can get an indication of the monthly payments by using our calculator below, but it is best to chat with a personal adviser to find out exactly what interest rate and term you can secure to give an accurate monthly payment.
Most of the first time buyers we have helped secure a mortgage are paying less on their mortgage than they used to pay on rent. This does, however, depend on circumstances. The mortgage term chosen is a major factor which can be dictated by your age and intended retirement age. Of course, it is also worth noting you are paying back the mortgage and once it is repaid you won’t have any rent to pay.
There are costs associated with purchasing your first home. You will need to pay legal fees and other potential costs include a survey fee, stamp duty (which is a property land tax) and administration fees. There are First Time Buyer government incentives on savings and stamp duty that can help you with raising the monies for a deposit, costs and reducing stamp duty. Our personal advisers can give guidance within a free consultation.