Joint Borrower Sole Proprietor Mortgage – JBSP Mortgage
Joint Borrower, Sole Proprietor is a type of mortgage where not all parties to the mortgage are legal owners of the property.
When two people apply for a Joint Borrower Sole Proprietor mortgage, both are responsible for the mortgage, but only one is listed on the property title.
This setup lets another person, often a parent, guardian, or close family member — join the mortgage to boost affordability. By combining incomes, the main buyer can borrow more and overcome the affordability barriers that often hold first-time buyers back from getting onto the property ladder.
It’s a fantastic way for another parties such as guardians, parents or friends to support a first time buyer with their affordability challenges when attempting to get a mortgage.
What is a joint borrower, sole proprietor mortgage?
Joint borrower, sole proprietor mortgages are aimed at helping families on the property ladder.
This allows multiple people to make payments on mortgage debt while a lone applicant owns the property and is named on the deeds.
These mortgages can be a much-needed solution for first-time buyers who have found it difficult to qualify for approval alone.
However, the criteria for mortgage approval does differ from each lender. The mortgage option can be used in a range of different circumstances, including: combining incomes but keeping sole ownership of the property.
The option could be used to reduce the need to save a large deposit. An additional income on an application can be applied to the mortgage of a family member who has no credit history or an unfavourable one….
Stamp duty implications
Stamp duty abolished for first-time buyers who are buying a home of up to £300,000. The Chancellor of the Exchequer announced that stamp duty would be abolished in 2017. This means that money put by for stamp duty can be added to a deposit. If you are on a joint mortgage, sole proprietor deal and have never owned a freehold or have a leasehold interest in a residential property in the UK or abroad, no. However, you can save more than £5,000 if you are a buyer …
What’s the difference between a joint mortgage and a JBSP mortgage?
Both parties are liable for the mortgage payments so if one is unable to pay, the other must cover. With a JBSP mortgage, the parent will be able to avoid a 3% stamp duty surcharge.
With the JPSB only the son or daughter’s name will be on the property’s deeds. This is because the parent’s name is listed on the deed of the home, but the child is not on the deeds of the property. It is true joint mortgages allow parents, children and partners to club together to get a mortgage. For a joint mortgage, you have no legal claim to the property, and only the child has a right to the deed….
Joint borrower sole proprietor mortgage lenders
JBSP mortgages are still a pretty niche product and are only offered by a limited number of lenders, mostly smaller building societies.
As yet, many lenders are not (as yet) that many lenders offer such products. Older parents may find it harder to get approval from a lender.
Lenders in this market are sometimes strict on their age criteria for those supporting the home buyer. This may change over time, but choice is currently quite limited.
It’s a good idea to speak to a mortgage broker, who can look at the whole market to find the best deal for you.
Pros and cons of a joint borrower sole proprietor mortgage
Joint borrower sole proprietor mortgages can be a total lifesaver if you’re struggling to get a mortgage.
To help you work out whether they’re right for you, here are the main pros and cons.
Pros:
Independence:
Because your parent or family member won’t legally own any of the property, you’ll be able to do what you want with it instead of having to make decisions with them.
Stamp duty:
Your parent or family member won’t have to pay any stamp duty (a tax that’s charged on property purchases) if you get a joint borrower sole proprietor mortgage as they won’t own any of the property.
Cons:
Profits:
Even though your family member is helping to pay for the property, they won’t get any of the money if you sell it (although depending on how you look at it, this might actually be a good thing!).
Disagreements:
Money can cause arguments and put a strain on family relationships. Make sure whoever helps you with the purchase, you both have each others trust 100%.
Commitment:
If you argue and your family member decides they don’t want to contribute towards your property anymore, it could be hard for them to get out of it & also have to pay certain legal & mortgage fees to be able to do so.
Responsibility:
If either one of you stops paying your share of the mortgage repayments, the other one will be responsible as they are a legal owner.
How to get a joint borrower sole proprietor mortgage
Joint borrower sole proprietor mortgages are very niche mortgages, which means they’re not offered by that many lenders.
Even the lenders that do offer them will all have different rules about who qualifies. This is why speaking with one of our brokers would be so beneficial.
JBSP Mortgage Alternatives
335,000 house purchases were supported by the Bank of Family, according to research by Legal & General. That says a lot about how much close family members contribute to helping younger generations onto the property ladder.
But taking out a Joint Borrower Sole Proprietor (JBSP) mortgage isn’t the only way parents can help their children buy a home. There are several other routes that might suit different family or financial situations — and each has its own impact on borrowing power, affordability checks, and mortgage repayments.
1. Gifted Deposit (Early Inheritance)
If parents are planning to leave an inheritance in the future, they could choose to gift part of it upfront to help with a deposit. The amount gifted can simply be deducted from the eventual inheritance.
This can make the mortgage application stronger, improve affordability, and reduce the size of the loan, meaning lower monthly repayments.
2. Family Loan (Private Agreement)
Another option is for parents or other close family members to lend the money instead of gifting it.
With the help of a solicitor, both parties can draw up a legal agreement outlining repayment terms, interest (if any), and what happens if circumstances change. This approach ensures everyone understands their rights and responsibilities — while keeping the arrangement clear and professional.
3. Springboard Mortgage
A springboard mortgage could be an alternative to a Joint Borrower Sole Proprietor arrangement.
In this setup, a family member (often a parent) places a percentage of the property value into a savings account linked to the mortgage. This acts as security for the lender and boosts the buyer’s borrowing power. After a set number of years — provided mortgage repayments have been made on time , the supporter’s savings are returned, often with interest.
It’s a smart option that allows families to help without becoming equally responsible for the mortgage itself.
Joint Borrower Sole Proprietor mortgage FAQS
1. JBSP Mortgage – Do I have to pay a second charge stamp duty?
The person that is supporting the purchase will not have to pay the 3% second charge stamp duty fee when helping their son/daughter buy a property with a JBSP mortgage because they hold no legal ownership over the property.
2. How does my joint borrower remove themselves from the JBSP mortgage?
Ending a JBSP mortgage becomes inevitable for some people because of a relationship breakdown. It can be difficult for the non-legal owner to have their name removed from the mortgage agreement without a deed of release.
This would only be granted on the basis that you, the homeowner, can afford to repay the mortgage on your own, without your supporter/parent’s financial help.
Many people who take out a JBSP mortgage, remortgage after a few years to an agreement without their supporter / parent’s help, alleviating the legal responsibility of any mortgage repayments from them.
Another option is to sell the property.
3. What happens if the legal owner dies?
In the event that the legal owner passes away before the end of the mortgage term, the executors of the legal owner are responsible for putting the property up for sale, with the intention of settling the mortgage from the proceeds.
Until the property is sold, the non-legal owner is legally obligated to pay the JBSP mortgage.
4. Does the joint borrower need to live in the property?
Typically, no. Most lenders allow the supporting borrower to live elsewhere, which is why this setup is popular among parents helping children onto the property ladder.
5. How is a JBSP mortgage different from a guarantor mortgage?
In a JBSP mortgage, all borrowers are on the mortgage contract and assessed for affordability, unlike a guarantor mortgage, where the guarantor only steps in if repayments are missed. JBSPs are seen as a more flexible, modern alternative.
6. Do all parties need to get Independent Legal Advice (ILA)?
Yes, most lenders require any joint borrower who won’t be on the property deeds to take independent legal advice. This ensures they fully understand that they’re jointly responsible for the mortgage but have no legal ownership of the property. It’s a key safeguard for both the borrower and the lender to confirm informed consent.
7. How many applicants can be on a JBSP mortgage?
Typically, lenders allow up to four applicants. All four incomes can be considered for affordability, though not every lender uses all applicants’ full income in their calculations. It’s common for JBSP applications to involve two people (e.g., a parent and child), but larger setups can include up to four family members or close connections, depending on the lender’s criteria.
8. Is there a maximum age limit for the joint borrower?
Yes, most lenders set a maximum age at the end of the mortgage term, often between 70 and 80 years old. However, some will go higher depending on the borrower’s income type (for example, pension income may be acceptable beyond age 75).
The key factor is whether the supporting borrower’s income is sustainable for the full mortgage term.
Use an independent mortgage broker
How long it takes to get your mortgage will depend on if you have a broker or not.
Mortgages don’t need to be slow and in fact, a broker will speed the whole process up as they will communicate with all the different parties.
When the lender has been chosen, your broker will also know what documents and information will be needed and will be able to submit this with the application. This can shorten the process to mortgage offer by as much as 2 weeks.
So, how do I get a mortgage?
Alexander Southwell would love to help you.
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