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Joint Borrower Sole Proprietor Mortgage

What is a Joint-Borrower-Sole-Proprietor Mortgage?


A Joint-Borrower-Sole-Proprietor (JBSP) mortgage allows up to four people, including parents, to help purchase a property without taking ownership.

This type of mortgage combines applicants’ incomes, making it easier to qualify, while only one person owns the property. Here’s everything you need to know.

Understanding a Joint-Borrower-Sole-Proprietor Mortgage

A JBSP mortgage enables multiple people to buy a home together, but with just one person listed as the owner.

This arrangement is beneficial for parents or family members who want to help someone purchase a home without being named on the title deeds.

Unlike guarantor mortgages, JBSP mortgages do not require family members to provide savings or guarantees for a deposit, and all applicants’ incomes are considered.

More lenders are now offering JBSP mortgages with competitive rates comparable to standard mortgages.

How Does a Joint-Borrower-Sole-Proprietor Mortgage Work?

In a JBSP mortgage, up to four people can collaborate to buy a home, but only one person will own it.

This setup is often used by parents assisting their children to get on the property ladder, or by siblings or friends pooling their incomes to buy a home for one of them to live in.

All borrowers share joint responsibility for the mortgage payments, reducing risk for lenders.

This also means if one borrower defaults, the others must cover the payments. Therefore, it’s crucial to only enter a JBSP mortgage with someone you trust and understand their financial situation.

The non-owner borrowers are not named on the title deeds and have no legal claim to the property or any increase in its value.

This type of mortgage allows family members or friends to help someone buy a home or upgrade to a larger property.

Once the initial deal period ends and early repayment charges are no longer applicable, the sole owner can transfer the mortgage to their name alone.

Criteria and Considerations

Lenders will scrutinise all borrowers, taking into account their income and expenses to assess affordability. Applicants must meet the lender’s criteria, including age limits and creditworthiness. Typically, the age limit is up to 70 or 80 years at the end of the mortgage term.

Missed payments can affect all borrowers’ credit profiles, as they are all liable for repayments.

The primary difference with a JBSP mortgage is that only the proprietor is named on the property deeds, and lenders usually require this person to live in the property.

Parents or other non-owner participants can exit the arrangement once the proprietor can afford the mortgage independently.

Additionally, JBSP mortgages can offer Stamp Duty benefits, avoiding the 3% surcharge for additional properties if the non-owner borrowers already own a home.

It’s important to consider how you would manage payments if you became ill or lost your job.

Income protection insurance is a viable option to cover mortgage repayments in such situations.

JBSP Mortgage vs. Joint Mortgage

The main difference between a JBSP mortgage and a joint mortgage is ownership.

In a JBSP mortgage, not all borrowers are property owners; only the proprietor is listed on the title deeds and responsible for Stamp Duty.

In contrast, a joint mortgage involves all borrowers owning and having their names on the title deeds.

Alternatives to JBSP Mortgages

  • Guarantor Mortgage: A guarantor, usually a parent, offers savings or their own property as collateral instead of a deposit, allowing the borrower to secure a mortgage with little or no savings.
  • Tenants-in-Common Mortgage: Borrowers purchase shares of a property, which they can sell independently.
  • Shared Ownership: Borrowers use a mortgage to buy a share of a home and pay rent on the remaining portion, a scheme typically run by developers.
  • Rent to Buy: Tenants pay reduced rent on a new-build home while saving for a deposit to purchase the property or a share of it, a government-backed scheme.


A Joint-Borrower-Sole-Proprietor mortgage can be an effective way for family members or friends to assist in purchasing a home without taking ownership.

It offers flexibility and the potential for significant financial support but requires careful consideration of the responsibilities and risks involved. Always consult with a mortgage advisor to understand the best option for your specific circumstances.

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