How To Get A JBSP Mortgage
The definitive guide to getting a Joint Borrower Sole Proprietor/JBSP Mortgage.
What is a JBSP Mortgage?
A JBSP mortgage, or Joint Borrower Sole Proprietor Mortgage is a mortgage where you have multiple people responsible for the mortgage, but only one owns the home.
What this actually means is that someone with a low income can use another person’s income to get their home. Commonly used by parents who want to help their children get their first home but don’t want to be on the deeds to the home.
The downside to this is if the relationship between those on the mortgage breaks down it may be difficult to remove one from the mortgage. However many people find that this type of mortgage can help get people on lower earnings on to the property ladder.
A Joint Borrower Sole Proprietor (JBSP) mortgage can be difficult to get, and the lender will likely take the person helping get the mortgages liabilities into account. This may be their own mortgage, loans, credit cards etc. They also will take both your credit histories into account when assessing your application.
JBSP Mortgage Rates
Joint Borrower Sole Proprietor (JBSP) Rates can vary from lender to lender. However, some lenders will use their standard interest rates from their standard product line. Whereas some lenders will offer mortgage applicants a specialist range of products with potentially higher JBSP mortgage rates.
JBSP Mortgage lenders
There are not many lenders that offer a Joint Borrower Sole Proprietor mortgage. The main ones would probably be Barclays or Metro Bank. However it can be a complex matter if you are trying to get a JBSP mortgage, which is why often people look to a specialist JBSP mortgage advisor. This means they can therefore have their application packaged correctly in order to have the greatest chance of getting accepted.
You are really limited on JBSP mortgage lenders, and may find that you only fit with one or two when you speak to an advisor.
JBSP mortgage calculator
You can generally use a lender’s normal calculator as a JBSP mortgage calculator. We don’t have a JBSP mortgage calculator as they tend to be really inaccurate. We can however tell you how much you can borrow if you can spare us ten minutes over the phone.
The reason Joint Borrower Sole Proprietor mortgage calculators are not very accurate is due to the fact that they tend to only ask basic questions such as your income and age. In order to work out how much you can borrow we need more information than that.
What income can be used for a JBSP Mortgage?
Most types of income can be used for a JBSP Mortgage, including:
- Employed Income
- Self Employed Income
- Income from Property
- Pension Income
- Dividend/Investment income
Who can be on a Joint Borrower Sole Proprietor (JBSP) Mortgage?
Usually a non owner on a JBSP mortgage will be a family member. Often this can be a parent. However, be aware that if it is a Parent this may limit the term of your mortgage based on their age.
JBSP mortgage broker
At Albion Forest we are a JBSP mortgage broker. We have done loads of Joint Borrower Sole Proprietor mortgages and know how to package your application to have the best chance of success with a lender. A JBSP mortgage broker will likely have access to the lenders that offer Joint Borrower Sole Proprietor mortgages, whereas some mortgage brokers only have access to a limited number of lenders.
JBSP mortgage with bad credit
If you have a bad credit history you may struggle with some of the high street JBSP mortgage lenders. However there are some Joint Borrower Sole Proprietor mortgage lenders that accept some bad credit history situations.
If you think you may have bad credit history the first thing you should do is check it with a credit reference agency. For this we recommend that you use Checkmyfile. They can show you your credit history with the main three credit reference agencies that lenders tend to use.
Once you have your credit report speak to a JBSP mortgage broker to find out which lender would be best for your situation.
Deposit for a JBSP mortgage
This will vary depending on your credit history and situation in general. However most lenders will want the same deposit for a JBSP mortgage as any other residential mortgage. The general rule for a JBSP mortgage is more is better.
You may also require a larger deposit if you have a lower credit score. This may mean that you need a Joint Mortgage with a specialist lender with potentially higher mortgage payments.
5 Things you should know about a JBSP Mortgage
- All parties will be liable for the mortgage, but not all will have a claim to the property. – Sounds obvious, but just because you are on the mortgage does not mean that you are entitled to a claim on the property. Only the proprietor has a claim to the property. However if they don’t pay the mortgage, all parties on the mortgage are liable for it.
- It will likely go on all your credit files. This shouldn’t have too much impact but should definitely be considered before application. Seeking independent legal advice should also be considered.
- Limited lenders – We’ve covered this above, not all lenders offer Joint borrower Sole Proprietor mortgages. Therefore don’t assume your bank offers them, feel free to ask, but chances are they don’t offer them unfortunately.
- Credit history – Everyone on the mortgage will probably be credit checked. This means you all need to fit the criteria with the lender.
- All liabilities of all parties will be taken into account when calculating affordability. So any existing mortgages, loans or credit cards will be taken into account and may reduce your affordability.