The lender’s joint borrower sole proprietor (JBSP) mortgage allows up to four people from two different households to borrow, but only one or two individuals are named on the property’s deeds.
This type of mortgage has, up until now, been associated with first-time buyers who need support from family members to get onto the property ladder. The JBSP mortgage means they can have a parent or other relative named on the mortgage but that person will not be a named owner of the home, meaning they won’t pay additional taxes.
But thanks to Suffolk’s new enhancement, this type of mortgage offers a potential solution for people who need support in different life stages.
The building society explained it could also help parents who want to support a child going through divorce or family breakup by taking over the mortgage on their family home, or to buy out a spouse.
Similarly, it said, children may choose to financially support their parents by being named as borrowers on a mortgage, in order to help mum and dad remain in their family home.
As well as residential mortgages, the building society will also accept applications from buy-to-let, holiday let and ex-pat buy-to-let customers for its JBSP deal.
Charlotte Grimshaw, head of intermediary relations and mortgage sales for Suffolk Building Society said: “We’re always looking to support first-time buyers and those stepping onto the property ladder but we also believe that joint borrower sole proprietor has many other applications which make it an appealing feature for families in differing circumstances.
“Family is important, and where possible family members want to help each other. By launching JBSP we’re supporting this societal norm and providing another vehicle for the generations to pool resources in a way that goes beyond simply ‘gifting’ money.
“We know that house prices continue to rise well above average earnings and that’s affecting many people, not just those new to home ownership.
“For example, couples separating can mean an individual suddenly having to fund a mortgage on one salary. Joint borrower sole proprietor could be just the answer in enabling family members to support that individual to either stay in the family home, or purchase something new.
“Alongside our manual underwriting and flexible criteria, we believe our joint borrower sole proprietor offering will help more people with home ownership when they’re faced with changes in circumstances. We look forward to seeing how different families make use of this new feature.”
The borrowers must all be immediate family, such as parents, grandparents, son, daughter, brother or sister, and can include stepfamily and adoptive family.
You can find out more about this product through your mortgage broker.
Meet our expert…
Suffolk Building Society’s head of mortgages, Charlotte Grimshaw, is no stranger to building societies, having worked for two societies before joining Suffolk in 2020. Charlotte is passionate about bringing in innovative new products and making improvements to give a better borrower experience. Outside of work, Charlotte enjoys spending time in the kitchen cooking up a storm, and redecorates on a regular basis. If you have a question for Charlotte, please email hello@suffolkbuildingsociety.co.uk or leave a message in the comments below.
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