A Guide to Joint Borrower Sole Proprietor (JBSP) Mortgages

Buying a home can feel out of reach if your income alone doesn’t meet a lender’s affordability criteria. A Joint Borrower Sole Proprietor (JBSP) mortgage (often considered the modern version of a guarantor mortgage) can be a practical way for someone to support your application without being added to the property deeds.

A JBSP mortgage allows a family member or trusted person to support your application by adding their income to the affordability assessment. You remain the sole legal owner of the property, but everyone listed on the mortgage is responsible for the repayments. Over time, the intention is often that your income increases so you can later remortgage into your sole name. In this way, the Joint Borrower Sole Proprietor mortgage option provides flexibility for changing circumstances.

How Does a Joint Borrower Sole Proprietor Mortgage Work?

A JBSP mortgage involves:

  • Two or more people on the mortgage application
  • From one person on the property deeds (Land Registry)
  • All borrowers jointly responsible for the mortgage payments

This structure can make buying a home far more achievable for those who fall just short on affordability when applying alone, and a Joint Borrower Sole Proprietor mortgage helps bridge that gap.

Key Benefits of a JBSP Mortgage

1. Increased Borrowing Power

By combining incomes, lenders can offer a higher loan amount than they would to a single applicant. This is particularly helpful for someone seeking a Joint Borrower Sole Proprietor mortgage arrangement.

  • First-time buyers
  • Younger buyers early in their careers
  • Self-employed applicants
  • Anyone who can afford the repayments but doesn’t pass lender affordability checks alone

2. Helps When Traditional Mortgages Aren’t Enough

JBSP can bridge the gap for buyers who have strong long‑term affordability but need support to meet today’s lender criteria. Joint Borrower Sole Proprietor mortgages are especially useful for these scenarios.

3. Stamp Duty Benefits for First-Time Buyers

Stamp duty is based on those named on the deeds—not the mortgage, which means that Joint Borrower Sole Proprietor mortgage arrangements may offer extra benefits to first-time buyers.

If the sole proprietor is a first-time buyer and the purchase price is below the £425,000 threshold (as at January 2024), no first-time buyer stamp duty is payable.

This is often a key advantage over other multi-person mortgage arrangements.

Points to Consider

While JBSP mortgages offer strong benefits, it’s important to understand the full picture. If you are considering a Joint Borrower Sole Proprietor mortgage, review all points carefully.

1. Joint Responsibility for Repayments

All borrowers are fully responsible for the mortgage payments—even if they are not a legal owner. Missed payments affect everyone’s credit files, which is important to remember with Joint Borrower Sole Proprietor mortgage setups.

2. Supporting Applicants Take on a Full Credit Commitment

The mortgage appears on the supporting applicant’s credit file and must be declared on any future credit applications.
This could affect their ability to borrow or remortgage elsewhere, especially if they have a Joint Borrower Sole Proprietor mortgage commitment.

Supporting applicants do not have any legal rights to the property.
This can become complicated in the event of disagreements or relationship breakdowns with a Joint Borrower Sole Proprietor mortgage.

Most lenders require supporting applicants to obtain independent legal advice before completion to confirm they understand their responsibilities. This step is crucial for anyone entering a Joint Borrower Sole Proprietor mortgage.

Are JBSP Mortgages Available Through All Lenders?

Not all lenders offer JBSP arrangements, and criteria vary widely. Lenders differ on:

  • Who can support the mortgage with Joint Borrower Sole Proprietor terms
  • Maximum age rules
  • How income is assessed in Joint Borrower Sole Proprietor mortgage cases
  • Plans for removing supporting applicants in the future

Speaking with a mortgage broker is essential to understand your options, including Joint Borrower Sole Proprietor mortgage possibilities.

Conclusion

Joint Borrower Sole Proprietor mortgages can be an excellent solution for buyers who need additional support to get onto the property ladder or buy their next home. They offer increased borrowing capacity without adding multiple people to the property deeds, and they remain a flexible route for first-time buyers and families supporting one another.

If you’re considering a JBSP mortgage or want to understand whether it fits your situation, a mortgage broker can guide you through the options, compare lenders and ensure you understand the responsibilities involved, especially with Joint Borrower Sole Proprietor mortgages.