Mortgage Calculator

Joint-Borrower Sole-Proprietor

  • Home
  • Joint-Borrower Sole-Proprietor

Joint Borrower Sole Proprietor (JBSP) helps young people on a modest salary get on the property ladder. JBSP allows a parent (or family member) to contribute to their child’s mortgage without being a co-owner of the property.  The ‘joint borrower’ can boost the applicant’s affordability, helping enable the young person to move to a desirable place.

The ‘joint – Borrower’ will agree to contribute to the mortgage payments from the start without having any legal right to the property.

The ‘guarantor mortgages’ and ‘joint-borrower mortgages’ differ slightly to the ‘Joint-Borrower, Sole-Proprietor”. Speak to us today to find out the difference.

Don’t get confused with Guarantor mortgages!

With a guarantor mortgage, the guarantor (parent) only becomes liable for the debt if the son or daughter can no longer make the payments or if they fall into arrears. The guarantor will have no legal ownership of the property.

Difference between “joint borrower” and “Joint Borrower Sole-proprietor”

With joint mortgages, you can get a mortgage to buy your home with someone else like your partner, friend, or a relative. All borrowers will be liable to the mortgage payments; if one is unable to pay their share the other must cover the payments.

The ownership would be the important factor as the ‘joint-borrower’ will also have legal right to the ownership unlike the Guarantor or JBSP mortgages. However, if you are a young person building your career on a modest salary, a ‘joint-borrower’ could boost your affordability and enable you to move to a desirable place.

Think carefully before securing other debts against your home. Your home or property may be repossessed if you do not keep up with repayments on your mortgage or on any other secured loans.

There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances. The fee is up to 1% of the amount borrowed, but a typical fee is £495.