Joint Borrower Sole Proprietor Mortgages Explained

Buying a home today isn’t easy—especially for first-time buyers. Rising property prices and strict affordability checks can make it feel like homeownership is just out of reach.

That’s where a Joint Borrower Sole Proprietor (JBSP) mortgage could help.

Whether you're a parent looking to support your child onto the property ladder, or a young professional needing a boost in borrowing power, this guide explains everything you need to know about JBSP mortgages in 2024—how they work, who they’re for, and what to watch out for.

What is a Joint Borrower Sole Proprietor Mortgage?

A JBSP mortgage allows multiple people to apply for a mortgage together—even if only one person will own the property.

That means:

• All applicants share responsibility for the mortgage repayments.
• But only one person—the sole proprietor—is named on the property deeds.

This setup is ideal for situations where a buyer needs help passing affordability checks but doesn’t want to (or can’t) share ownership with the person helping them.

How Is It Different from a Joint Mortgage?

With a traditional joint mortgage:

• Everyone on the mortgage is also a co-owner of the property.

With a JBSP mortgage:

• Everyone on the mortgage helps repay it.
• But only one person legally owns the home.

This structure keeps ownership simple and avoids triggering certain tax charges that would apply if parents or helpers were co-owners.

When Are JBSP Mortgages Used?

These mortgages are most commonly used when:

• Parents help their children buy their first home.
• Siblings or friends support one person’s property purchase.
• A higher earner boosts a loved one's mortgage eligibility without owning the property themselves.

In all cases, it's a way of boosting affordability without complicating the ownership structure.

Key Benefits of JBSP Mortgages

✅ Increased Borrowing Power
Up to four people can be named as borrowers, increasing the total income considered by the lender.

✅ Ideal for First-Time Buyers
Great for young buyers with a deposit but not quite enough income. Parents can help—without having to gift or loan large sums of money.

✅ Stamp Duty Benefits
Because only one person owns the property:

• You can avoid the 3% second home Stamp Duty surcharge, often triggered when parents buy jointly.
• Supporting borrowers usually aren’t liable for Capital Gains Tax either.

✅ Flexible Exit Options
Some lenders offer flexible arrangements (like Flex Together) that make it easier for parents to exit the mortgage once the child can afford the payments alone.

Things to Consider

❗ No Ownership Rights for Supporters
Those helping with the mortgage don’t get any legal claim to the property, despite being responsible for repayments.

❗ Legal & Financial Responsibility
All borrowers are jointly and severally liable. If the sole owner can’t pay, the others must cover it—even though they don’t own the home.

❗ Impact on Future Borrowing
Being named on a JBSP mortgage may limit a co-borrower’s ability to get other loans or mortgages in their own name later on.

❗ Exiting the Arrangement
Removing a co-borrower isn’t always simple. A “deed of release” is often needed, and the lender will want to make sure the remaining borrower can afford the mortgage alone.

Legal Protection Is Essential

If you're considering a JBSP mortgage, we strongly recommend:

• Drawing up a Deed of Trust to set out everyone's intentions clearly.
• Getting independent legal advice, especially for those not listed as owners.

This ensures all parties are protected—and there are no surprises down the line.

Is a JBSP Mortgage Right for You?

A Joint Borrower Sole Proprietor mortgage can be a brilliant stepping stone to homeownership. It gives buyers a much-needed affordability boost while protecting the financial supporters from ownership responsibilities and tax complications.

But it’s not for everyone.

That’s why we’re here. At Chetwood Lloyd Mortgages, we take time to understand your unique situation and help you decide whether a JBSP—or another option—is the right move.

Need Help Exploring Your Options?

We're fee-free, truly independent, and with you every step of the way.

📞 Call us for a chat
💬 Message us directly through the website
📅 Book an appointment online

Let’s find the best path to homeownership—together.

FAQs

How many people can be on a JBSP mortgage?
Up to four people can be named as borrowers, but only one will own the property.

Do co-borrowers have any legal claim to the home?
No. Only the sole proprietor is listed on the title deeds. Co-borrowers help with repayments but have no ownership rights.

Will it affect my ability to buy another property?
Yes, potentially. Being named on a JBSP mortgage may affect your borrowing capacity for other loans or mortgages.

Is it the same as a guarantor mortgage?
Not quite. A JBSP mortgage involves co-borrowers making monthly repayments alongside the owner. A guarantor mortgage typically means the guarantor only steps in if payments are missed.

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