What is a JBSP?

A joint borrower sole proprietor (JBSP) mortgage allows buyers to take out a mortgage with somebody else, however that person will not be named on the title deeds or have a legal stake in the property.

This type of mortgage is most common for first-time buyers who cannot afford to buy a property on their own; including somebody else’s income, more often than not a parent, during the affordability assessment process they are able to borrow more money and get help with repayments, without having to share ownership of their home.

What’s the difference between a joint mortgage and a JBSP mortgage?

A joint mortgage is where you borrow money to buy a home with someone else. Both parties are liable for the mortgage payments even if one is unable to pay their share for whatever reason, the other must cover. Most importantly, both have a legal claim to ownership of the property.

Whereas with a JBSP mortgage, the other person (typically a parent) accepts joint responsibility for making mortgage payments, however they have no legal claim to the property.

The 3% stamp duty surcharge for a second home does not have to be paid by the supporting borrower, even if they own a property already as they have no legal rights to new home.

What’s the difference between a JBSB mortgage and a guarantor mortgage?

This is designed for parents and family members to help individuals to get on the property ladder. Like the JBSB, the parent or family member (the guarantor) will not legally own the property, however they are responsible for paying the mortgage if you cannot make your payments. As they are promising to pay the mortgage if you can’t, this gives the lender extra piece of mind and they still get their monthly payments.

What are the benefits of joint borrower sole proprietor mortgages?

  • Helps people get onto the property ladder
  • A larger amount can be borrowed through combined incomes vs. making a solo application
  • If other applicants, such as parents, already own a property, they won’t be liable to pay a second-property stamp duty surcharge, as they won’t be registered on the title deeds.
  • You aren’t confined to new build properties, unlike the government’s Help to Buy scheme.
  • JBSP mortgages can be used for residential and buy-to-let applications as well as by first-time buyers.