Joint Borrower Sole Proprietor Mortgages - the Alternative to Guarantor Mortgages
A joint borrower sole proprietor mortgage lets a family member join your mortgage application to increase borrowing power, without being named on the property title deeds. The main buyer keeps sole ownership of the home while the supporting borrower’s income helps meet the lender’s affordability requirements. It is one of the most practical routes for first-time buyers and home movers who need family support to bridge an affordability gap. Mortgage One arranges JBSP mortgages with lenders from the whole of market and can explain how this structure could work for your purchase.
Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.
To discuss whether a JBSP mortgage could work for your situation, call 01202 155992 or contact Mortgage One.
How a Joint Borrower Sole Proprietor Mortgage Works
With a JBSP mortgage, two or more people are named on the mortgage application and loan agreement, but only the main borrower appears on the property title deeds. The supporting borrower, typically a parent or close family member, adds their income to the affordability assessment. This can increase the amount the main borrower is able to borrow without the supporting party acquiring any ownership interest in the property.
All borrowers are jointly and severally liable for the mortgage repayments. If the main borrower misses a payment, the lender can pursue any borrower on the agreement. This shared liability is what distinguishes JBSP from a traditional guarantor mortgage, where the guarantor’s role was typically limited to covering shortfalls rather than being a full borrower. For a comparison of these two structures, see the guarantor mortgage guide.
Most lenders offering JBSP products allow up to four borrowers on the application. Income from all borrowers can usually be used in the affordability calculation, though some lenders weight the additional incomes differently. The mortgage term is often restricted by the age of the oldest borrower at the end of the term, which can affect monthly payments if the supporting borrower is older.
Who Can Use a JBSP Mortgage
JBSP mortgages are primarily designed for residential purchases where the main borrower will live in the property. They are most commonly used by:
• First-time buyers whose income alone does not meet the lender’s affordability threshold
• Home movers who need additional income support to step up to a larger property
• Young professionals with career earnings potential but a current salary that limits borrowing
• Families who want to support a purchase without the supporting party becoming a property owner
The supporting borrower does not need to live in the property. Their role is to strengthen the affordability position. Some lenders also accept non-family members as supporting borrowers, though criteria vary. For first-time buyers exploring their deposit and affordability options, the first-time buyer mortgage guide and the mortgage deposits guide cover the wider picture.
JBSP is not typically available for buy-to-let purchases. It is designed for owner-occupied residential mortgages, though some lenders may consider it for specific scenarios such as remortgaging.
Stamp Duty and JBSP Mortgages
One of the practical advantages of a JBSP structure is its treatment for Stamp Duty Land Tax purposes. Because the supporting borrower is not named on the property title deeds, they are not treated as purchasing the property. This means:
• A first-time buyer using JBSP can still qualify for first-time buyer stamp duty relief, even if the supporting parent already owns a property. First-time buyer relief currently means no SDLT on the first £300,000 of the purchase price for properties up to £500,000
• The supporting borrower who already owns another property does not trigger the 5% higher rate SDLT surcharge that would apply if they were named on the deeds as a joint owner
This is a significant difference compared to a standard joint mortgage, where adding a parent who already owns property would typically forfeit first-time buyer relief and trigger the surcharge. However, stamp duty rules are complex and individual circumstances vary. Buyers should always take legal advice from their conveyancer on SDLT liability before proceeding. Use the Mortgage One stamp duty calculator for an estimate of what you may owe.
What Lenders Look For
Lender criteria for JBSP mortgages vary, but the following are common requirements:
• Deposit: most lenders require a minimum 5% deposit, though the loan-to-value ratio available depends on the lender and borrower profile. Some lenders offer JBSP at up to 95% loan-to-value
• Income: all borrowers’ incomes are assessed. Lenders typically apply income multiples to the combined earnings, though some weight the highest earner’s income more heavily
• Credit history: all borrowers undergo a full credit check. Any adverse credit on a supporting borrower’s record can affect the application. For guidance on what lenders look for, see the mortgage credit checks guide
• Age: many lenders cap the mortgage term based on the oldest borrower’s age at the end of the term. Common maximum age limits range from 70 to 80, though some lenders extend further when retirement income can be evidenced
• Independent legal advice: lenders typically require each non-proprietor borrower to receive independent legal advice before the mortgage completes. This must come from a separate solicitor to the one handling the property transaction
• Relationship: some lenders restrict JBSP to family members, while others accept friends or other third parties
Mortgage One has access to JBSP products from lenders from the whole of market and can match your circumstances to the right criteria. For a broader look at how lenders assess mortgage applications, the mortgage affordability guide explains the process.
Risks and Considerations for Supporting Borrowers
A JBSP mortgage creates real financial obligations for the supporting borrower, even though they have no ownership interest in the property. Before agreeing to this arrangement, all parties should understand:
• The mortgage will appear on the supporting borrower’s credit file for as long as they remain on the agreement. This may reduce their own borrowing capacity if they apply for credit or a mortgage elsewhere
• If any payment is missed or late, it will be recorded on every borrower’s credit report
• The supporting borrower has no legal claim to the property, no share of any equity growth, and no right to sell the property
• If the main borrower cannot make repayments, the lender can pursue the supporting borrower for the full amount owed
• All parties should consider whether mortgage payment protection or income protection insurance is appropriate
These obligations are one reason independent legal advice is a standard lender requirement. Both the main borrower and the supporting borrower should be clear on the terms before proceeding.
Removing a Supporting Borrower Later
JBSP is often intended as a temporary arrangement. Once the main borrower’s income has increased, or enough of the mortgage has been repaid, it may be possible to remove the supporting borrower. This is usually done by remortgaging into a sole application, subject to passing the lender’s affordability assessment on the main borrower’s income alone. The remortgaging guide explains how the process works.
Some lenders also allow a supporting borrower to be removed at the end of the initial product term without a full remortgage, provided the remaining borrower meets affordability criteria. Timing this around the end of a fixed-rate period can avoid early repayment charges.
Planning an exit route from the outset is sensible. Mortgage One can advise on structuring the arrangement so that removing the supporting borrower is as straightforward as possible when the time comes.
For a free initial consultation on JBSP mortgages, call 01202 155992 or contact Mortgage One.
The information provided in this article is for general guidance only and does not constitute personal or regulated financial advice. If you’d like to understand what these moves could mean for you, speak to Mortgage One. We can explain your options and timings based on your specific circumstances.
Some Buy to Let mortgages are not regulated by the Financial Conduct Authority.
FAQs
1. What is a joint borrower sole proprietor mortgage? A JBSP mortgage allows two or more people to be named on the mortgage, but only the main borrower appears on the property title deeds and legally owns the home. The supporting borrower’s income boosts affordability without them becoming a property owner.
2. How is a JBSP mortgage different from a guarantor mortgage? With a guarantor mortgage, the guarantor agrees to cover payments if the borrower defaults but is not usually a full borrower on the application. With a JBSP mortgage, the supporting party is a joint borrower whose income is assessed for affordability, and all borrowers share full liability for repayments.
3. Will a JBSP mortgage affect the supporting borrower’s credit file? Yes. The mortgage will show on the supporting borrower’s credit report for as long as they remain on the agreement. Any missed or late payments will be recorded against all borrowers.
4. Can I still get first-time buyer stamp duty relief with a JBSP mortgage? In most cases, yes. Because the supporting borrower is not named on the title deeds, first-time buyer SDLT relief is assessed based on the sole proprietor’s status. Take legal advice from your conveyancer to confirm your position.
5. How many people can be on a JBSP mortgage? Most lenders allow up to four borrowers on a JBSP application, though criteria vary. Income from all borrowers can typically be used in the affordability assessment.
6. Can the supporting borrower be removed later? Yes. This is usually done by remortgaging once the main borrower can demonstrate sufficient income to meet affordability on their own. Some lenders allow removal at the end of a product term without a full remortgage.
7. Are JBSP mortgages available for buy-to-let? Generally not. JBSP products are designed for residential owner-occupied purchases. Buy-to-let affordability is typically assessed differently.
8. Does the supporting borrower need independent legal advice? Most lenders require each non-proprietor borrower to receive independent legal advice from a solicitor who is separate from the one handling the property purchase. This is usually a condition of the mortgage offer.