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.
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 3)
Can I use a JBSP mortgage to buy a second home or holiday home?
This doesn’t tend to come up. Joint Borrower Sole Proprietor is designed for people looking to buy a residential property, and lenders’ criteria tend to focus around that.
However, I have had conversations with a couple of lenders who could potentially consider a second home or a holiday home. It would be subject to underwriters’ discretion and the specific situation.
Does the joint borrower have to live in a different property?
No, they can live in the property whether or not they’re on the deeds. They will typically need to sign an occupancy waiver form, which means that if, for any reason, the lender had to repossess the property, they would leave.
Another question that typically comes up is whether the joint borrower can live in the property if they have also provided the deposit – and that is also potentially possible as well.
Can I switch from a standard mortgage to a JBSP mortgage?
Yes. A typical scenario for JBSP is a younger person is looking to buy their first property, but the affordability isn’t there to borrow enough money, so a parent typically steps in.
If you’re looking at changing from a standard mortgage to a JBSP, it could be the opposite way around. Perhaps the parents are at an older age with lower incomes, and their child joins the mortgage to allow them to borrow enough money.
How do interest rates compare for JBSP mortgages?
Currently some lenders offer both JBSP and a range of standard products, and there’s no difference in the interest rates between them.
However, other lenders do make these products slightly more expensive than their standard range. It just depends upon which lender we need to go to based upon the client’s circumstances.
Is it possible to use a JBSP mortgage for Buy to Let properties?
It’s really designed to support residential lending, but some lenders can do Joint Borrower Sole Proprietor mortgages on a Buy to Let property. It very much comes down to underwriter discretion, understanding the case and why the client is looking for that type of mortgage on a Buy to Let.
Recently I had a young client who didn’t have the income to support the application or experience as a landlord – but their parent did. That parent came on as a joint borrower to support the application. So it’s possible, but subject to the underwriter’s discretion.
What happens if the joint borrower passes away or can’t pay the mortgage?
It’s never a nice subject, but this is something that always needs to be considered. When we recommend any mortgage to a client, we will look at these possible situations and discuss life assurance or critical illness cover.
Hopefully there will then be an insurance policy in place to pay off the mortgage. If someone hasn’t got those policies in place, there’s no simple answer to this question.
You would need to let the lender know what’s happened, and while they will try to be accommodating, they will want to know how the mortgage will be paid going forwards. You would find out what is possible and, if needed, you can always come back to us to look at the possible solutions.
Can I get a JBSP mortgage if one borrower has an existing mortgage?
This is a pretty normal situation if it’s a parent helping a child. The child would be the sole proprietor – the sole owner of the property – and the parent as joint borrower may still have a mortgage on their property.
Lenders would just take that into account as part of the affordability. The parent’s mortgage is included as an expense and they check it’s still affordable with two mortgages in place.
Are there any special considerations for older joint borrowers on a JBSP mortgage?
This continues on that theme of a parent helping a child – and this is a big question which can sometimes mean a JBSP isn’t suitable.
The term of the mortgage is based upon the eldest applicant, so with a parent in their 50s or 60s and some lenders only going up to a maximum age of 70, the term could be reduced.
That has a knock-on effect with affordability for the child. If they are paying that mortgage on their own, the payments will be higher if it’s on a shorter term.
There are lenders that can go past the age of 70 – sometimes to age 80 – but they’re typically looking at pension income for the older applicant, which again may impact affordability. A few lenders could go up to the eldest applicant’s 95th birthday – so there is flexibility there, but there are limited lenders and potentially higher rates.
How can a mortgage broker help here? Any final thoughts?
Joint Borrower Sole Proprietor mortgages are tricky. It won’t tick every single box for everyone. Ages, affordability and existing mortgages can all play a part in what’s possible.
Also, some lenders have strict conditions for the borrower in terms of minimum income. Sometimes partners or married couples apply for a JBSP, and this can be tricky. Not all lenders accept this, as it can be seen as an attempt to avoid stamp duty.
I would always recommend speaking to a tax advisor to find out where you will sit with stamp duty costs. But some lenders can accept married couples on a JBSP mortgage. We’ll explore all the options with you.
Key Takeaways:
- Joint Borrower Sole Proprietor (JBSP) mortgages are primarily designed for residential properties, but some lenders may consider them for a second home, holiday home, or Buy to Let property based on underwriter discretion.
- The joint borrower is not required to live in a different property and can reside in the mortgaged home, even if they contributed to the deposit (typically they would sign an occupancy waiver form).
- Interest rates for JBSP products are not consistent across the market; some lenders offer the same rates as their standard products, while others charge slightly higher rates.
- A critical consideration for older joint borrowers is that the mortgage term is based on the eldest applicant, which can reduce the term and lead to higher monthly payments for the sole proprietor.
- A person with an existing mortgage can still act as a joint borrower, but lenders will include the parent’s existing mortgage as an expense when checking the overall affordability for both mortgages.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP WITH YOUR MORTGAGE REPAYMENTS.
THE FINANCIAL CONDUCT AUTHORITY DOES NOT REGULATE MOST BUY TO LET MORTGAGES.
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