Stuart Mackenzie, mortgage manager at Miles Rhodes Mortgages, looks at how parents can help their child get on the property ladder with a Joint Borrower Sole Proprietor mortgage.

Parents who want to help their child to buy a home is something we are dealing with more and more at Miles Rhodes Mortgages. First-time buyers face significant hurdles buying a home; high house prices, alongside the rising cost of living and rent can make saving a big enough deposit feel impossible. So, it’s no surprise so many first-time buyers turn to the so called “Bank of Mum and Dad” for help.

Joint Borrower Sole Proprietor (JBSP) mortgages are bespoke mortgages that require carefully planned applications, and only certain lenders offer them. If you’re thinking of taking out a JBSP, it’s best to speak to an expert mortgage broker. That’s where Miles Rhodes Mortgages come in! 

Stuart Mackenzie, mortgage manager at Miles Rhodes MortgagesStuart Mackenzie, mortgage manager at Miles Rhodes Mortgages (Image: Miles Rhodes Mortgages) A JBSP is a mortgage that can be taken out with your parents or a family member. This gives you the ability to borrow more money on a mortgage. Everyone is responsible for paying the mortgage, however, you’ll be the sole owner of the property. 

This type of mortgage can give you a boost at the start (when you need the most help) until your situation becomes more comfortable and you can afford the repayments on your own.

You’ll all need to pass the lender’s various checks, but a JBSP mortgage could open up to properties that you wouldn’t have been able to afford on your own. This is because your family’s income is considered as well as your own.

Your family won’t be expected to stay on the mortgage forever. In fact, most lenders will want you to take over responsibility for the mortgage when you start earning more. 

JBSPs are flexible mortgages, so you can reduce the amount your family needs to pay overall if you want to make the extra payments. 

Usually, JBSP mortgages are designed for first-time buyers. But you don’t necessarily have to be a first-time buyer to get one. It’s possible you could take out a JBSP when remortgaging or moving home. 

You can have up to four people named on your JBSP mortgage. Technically, you can ask anyone, but most lenders will want it to be family. You’ll need to agree that only you can live at the property - your family won’t have a stake in your home.  

Some lenders might need you to prove that your salary will increase after a certain amount of time. If you’re an employee with a clear career path, then this will be easier. If you don’t then you might struggle to get accepted. 

Lenders will also need to know the age of the oldest person on the mortgage. They’ll use this to work out how long your mortgage term can be. Most lenders need mortgages to be paid off before you reach 75, but some are more flexible. Remember, the shorter your mortgage term, the higher your monthly repayments will be.

A JBSP mortgage isn’t something to enter into lightly. It’s a really big commitment, so it’s best to get advice before applying. 

Contact our Dereham office on 01362 423042 or find an adviser here.