Joint Borrower Sole Proprietor mortgages are mortgages where not all of the mortgage applicants are required by the lender to go onto the Title Deeds of the property i.e., to become the owner of the property. The lender will usually consider the income from all the mortgage applicants towards affordability and maximum borrowing - but the stamp duty will be paid on the basis of the owner of the property not the mortgage applicants.
We have assisted many clients with joint borrower sole proprietor mortgages, and they are typically used in two scenarios: 1) Parents apply with their son or daughter to buy a property for their son or daughter to own and live in; 2) Children apply with their parents to buy a property for their parents to own and live in. In a number of cases, we have also assisted clients whereby a family friend is happy to help another to buy a home.
Typically, clients we successfully assist with joint Borrower sole proprietor mortgages tell us of the difficulty they have experienced in trying to arrange the most competitive mortgage finance on the home they wish purchase or remortgage. Often they express their frustration in finding an appropriate lender, given the thousands of mortgages advertised nationally and the fact that few lenders will consider joint applicant sole proprietor mortgages.
