Joint Borrower Sole Propietor
Share your mortgage but not your home
With property prices unaffordable for most first-time buyers, getting your foot on the property ladder can be an impossible financial challenge. If you’re in this situation but have family members or friends willing to help you financially, a joint borrower sole proprietor mortgage could be the solution to getting your new home. With this type of mortgage, you’ll be the sole legal owner of your home but share your mortgage with your benefactor. The arrangement allows you to borrow more than you could afford to on your own, increasing your house-buying options.
Finding a joint borrower sole proprietor mortgage
While joint borrower sole proprietor mortgages are increasingly popular, they’re still a niche product few lenders offer. They’re also more complicated than traditional residential mortgages, as there’s more than one borrower. The easiest way to find the available deals and lenders is to speak to us. We know which lenders offer joint borrower sole proprietor mortgages and what products are available. We’ll advise you on the most suitable options and manage your mortgage application from start to finish. Coordinating several applicants isn’t easy, but we’ll handle it for you. With our help, the process will be easy and stress-free, and you’ll soon be celebrating with the keys to your new home.
For help securing a joint borrower sole proprietor mortgage, get in touch for a free, no-obligation chat with a mortgage adviser.
Joint Borrower Sole Propietor FAQs
What is a joint borrower sole proprietor mortgage?
A joint borrower sole proprietor mortgage is a type of home-buying loan that allows several people to apply for a mortgage together, but only one is the legal owner of the property. This arrangement enables the home buyer to borrow more money than they could afford on their own as the income and assets of the other borrowers boost mortgage affordability.
How does a joint borrower sole proprietor mortgage work?
A joint borrower is typically a family member, such as a grandparent, but can also be a friend. Up to four people can join the buyer on the mortgage. Lenders consider the income and assets of all borrowers in the affordability assessment, thereby increasing the amount they’ll be willing to lend.
The buyer (the sole proprietor) is named on the deeds and is the legal owner of the property. The sole proprietor is responsible for the property’s maintenance and is the only borrower able to make decisions about the property, such as selling it. Only the homeowner benefits from the property’s value, but all borrowers are responsible for monthly mortgage payments.
What is the mortgage application process for a joint borrower sole proprietor mortgage?
Applying for a joint borrower sole proprietor mortgage is similar to a traditional residential mortgage. All borrowers will need to submit their financial documentation with their application. The lender will then assess the financial standing of all applicants against their lending criteria to determine the overall affordability and creditworthiness.
What are the drawbacks of a joint borrower sole proprietor mortgage?
All parties named on the mortgage are liable for repaying the mortgage, but only the homeowner has the rights to the value in the property. Also, the joint borrowers may face restrictions on future borrowing.
