Owning your own home is a big step. With a Joint Borrower, Sole Proprietor, our team of mortgage advisors can make it happen.
A “Joint Borrower, Sole Proprietor” mortgage is a type of mortgage arrangement that allows multiple people to be joint borrowers on a mortgage loan while only one person is the sole proprietor or owner of the property. This type of mortgage is often used in situations where one person wants to buy a home but needs the income, creditworthiness, or financial support of another person to qualify for the mortgage.
Benefits include:
– Buying together to get on the property ladder when individually you may not pass the mortgage lenders affordability checks.
– Making repayments more affordable by pooling incomes whilst building the credit rating of the sole proprietor.
– Enabling parents to help children buy their first home without being named on the deeds.
– The joint borrow will not have to pay stamp duty or additional property stamp duty vs both being named on the mortgage deeds.
This type of mortgage can be beneficial for individuals who may not qualify for a mortgage on their own due to insufficient income or credit but have a willing co-borrower. It allows them to buy a home while sharing the financial responsibilities with the co-borrower. It is important you fully understand this mortgage and consider carefully if it is suitable. The named sole proprietor takes on all long-term financial risk.
Your home may be repossessed if you do not keep up repayments on your mortgage.
