Award-Winning Bad Credit Specialist · FCA No. 301173
Joint Borrower Sole Proprietor Mortgage Parents Helping Children Buy
The Joint Borrower Sole Proprietor JBSP mortgage is one of the most powerful but least understood mortgage products. Darryl Dhoffer explains exactly how it works and when it is the right solution.
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What Is a Joint Borrower Sole Proprietor Mortgage?
A Joint Borrower Sole Proprietor JBSP mortgage allows up to 4 people to be responsible for mortgage repayments but only one person the sole proprietor to appear on the property title deeds as owner.
This is most commonly used when parents want to help their adult child buy a home. The parent income boosts the mortgage affordability but because they do not appear on the title deeds no stamp duty surcharge applies which would otherwise add 3% of the purchase price if the parent already owns a home.
Darryl Dhoffer — The Mortgage Geezer
20+ years in mortgages. Award-winning specialist. Featured in the Daily Express, FT Adviser and The Intermediary. I have helped hundreds of people across the UK who were told no by their bank — and I work with 90+ lenders including specialist adverse credit lenders you will not find on comparison sites.
When you contact me, you speak to me directly. No call centres. No being passed around. I personally review every case and respond within 2 hours.
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Frequently Asked Questions
What is a Joint Borrower Sole Proprietor mortgage? ›
A JBSP mortgage allows multiple people up to 4 to be jointly responsible for mortgage repayments while only one person owns the property. The people not on the title deeds are joint borrowers. Their income counts towards affordability but they have no ownership rights. This avoids the 3% stamp duty surcharge that applies when someone who already owns a home buys another property jointly.
What are the advantages of a JBSP mortgage? ›
Key advantages include avoiding the stamp duty surcharge for parents who already own a home; boosting the first-time buyer borrowing capacity using parental income; the first-time buyer retaining sole ownership and benefiting from first-time buyer stamp duty relief; parents not being on the title deeds so their own estate planning is not complicated; and when the first-time buyer income grows they can remortgage in their sole name.
What are the risks of a JBSP mortgage for parents? ›
The parent is legally responsible for mortgage repayments if their child cannot meet them. The mortgage will appear on the parent credit file and count as a financial commitment which may affect their own borrowing capacity. Parents should seek independent legal advice before entering a JBSP arrangement.
Can a JBSP mortgage be used with bad credit? ›
Yes. If one applicant has bad credit a JBSP arrangement can sometimes help by adding a person with clean credit to the application. Not all lenders offer JBSP for bad credit scenarios. Darryl Dhoffer will assess whether JBSP is the right structure for your specific situation.
How do I remove a parent from a JBSP mortgage? ›
When the sole proprietor income is sufficient to support the full mortgage in their own name they can remortgage in sole name. This releases the parent from all responsibility. Darryl will help you plan from day one including the target income and credit position needed to successfully remortgage in sole name.
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01234 237321
darryl@themortgagegeezer.co.uk
FCA No. 301173
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The Mortgage Geezer is a trading style of Access Financial Services Limited, authorised and regulated by the FCA No. 301173. Your home may be repossessed if you do not keep up repayments on a mortgage.
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