When you’re looking to buy a property, the right kind of mortgage is essential. Sometimes it can be challenging to secure a standard mortgage on your own. Perhaps your credit history isn’t up to scratch or you don’t earn enough income to borrow the amount that you need. Perhaps your deposit is too small and you can’t provide the necessary financial guarantee to back your loan. In these instances, there is a range of more specialist mortgages that can be useful.
One example is the joint borrower sole proprietor mortgage, which is increasingly popular for first-time buyers who want to get their feet on the property ladder after renting.
What Are Joint Borrower Sole Proprietor Mortgages?
With joint borrower sole proprietor mortgages, up to four people can be added to the mortgage application to guarantee it and to guarantee its repayment. Usually these are the parents of the applicant, but other people – usually family members who are close to the applicant – can be listed too. What is crucial is that the applicant is the only person who is listed on the mortgage deeds.
The main benefit of joint borrower sole proprietor mortgages is that they can give applicants a chance to borrow more money whilst remaining the only owner of that property. This type of mortgage tends to be popular with young people who may be self-employed or who have rented without the chance to build up a high credit score. They may also have a healthy deposit but not a large enough income to borrow at a large enough multiple to buy a property in their chosen area.
This type of mortgage isn’t just for first-time buyers, though and other people use it as well to help secure the mortgage that they need with the help of their family. These types of mortgage can be taken out for both residential and buy-to-let properties.
How Can You Find a Joint Borrower Sole Proprietor Mortgage?
The best approach is to use a whole market broker with a strong reputation. Many of these deals are only available via brokers and will not be found on typical price comparison websites. By taking this approach, the broker can recommend mortgage products which are designed to meet your specific needs and maximise your chance of borrowing success.