Our clients’ situation
A UK expat living in Saudi Arabia approached us for support in helping his son buy a home in the UK. They wanted to use a Joint Borrower Sole Proprietor (JBSP) arrangement, where a family member can go on the mortgage to boost affordability while the purchaser remains the sole legal owner of the property. It’s a structure often used by parents wanting to help their children onto the property ladder without becoming co owners themselves.
In this case, the father had a strong income paid in UAE Dirhams and free from UK tax due to Saudi Arabia’s tax system. Several complexities made this a more challenging application. His expenditure was high, including a substantial monthly loan repayment, ongoing rent commitments and a significant level of credit card borrowing—much of which had accrued as a result of processing company expenses through personal cards.
He and the main applicant required a large mortgage at a high loan to value ratio, which placed considerable pressure on affordability. This was further complicated by the fact that some lenders apply an assumed UK tax rate to foreign income, dramatically reducing the level of income they recognise and therefore restricting borrowing capacity.
There were also policy hurdles. The property’s ground rent was higher than the level many lenders are comfortable with, sitting above the typical 0.1% threshold that some use as a policy limit.
Neither applicant currently owned a property. The applicants were also subject to maximum term restrictions, which further tightened affordability and limited how far the mortgage term could be extended to reduce monthly payments. And as a UK expat based in Saudi Arabia, many mainstream lenders simply wouldn’t consider the case under their criteria.
Alexander Hall’s solution
Our adviser performed a detailed review of the client’s full circumstances and affordability across multiple lenders. One particular Building Society emerged as the strongest fit due to their flexible and more realistic approach to expat income and JBSP applications. Crucially, they accepted the father’s earnings as genuinely non taxable, allowing the income to be keyed as such rather than being subjected to an assumed UK tax deduction. This meant the lender was effectively able to assess the case using an income level significantly higher than the figure many lenders would typically recognise, which was essential in meeting the required loan size.
They were also comfortable lending to UK expats living in Saudi Arabia and were willing to support a 90% LTV structure in this scenario. Their stance on ground rent was pragmatic, relying on the surveyor’s comments rather than applying a blanket cap. They also didn’t require the sole proprietor—in this case, the son—to be earning, which is key in many JBSP cases where parental support is the main driver of affordability.
They applied a stress test to the applicant’s existing debts, allowing a level of background financial commitments that many other lenders would not have accepted.
The process took roughly six weeks to reach offer, largely due to reasonable underwriter queries rather than heavy documentation demands. Their Business Development Manager worked closely with our adviser throughout the process to ensure smooth escalation and prompt turnaround of checks, helping keep the application moving.
This case is a strong example of how the right lender selection—combined with deep understanding of expat policy nuances, JBSP structures and income treatment—can unlock borrowing options that many clients assume are out of reach.
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To talk to one of our advisers about your mortgage needs, call us on 08000 38 37 36 or book an appointment today.
This is for information only. Products and rates vary depending on your circumstances, lender criteria and products available at the time. There may be tax implications when arranging this type of transaction, this depends on your personal circumstances and may change. We recommend that you take independent tax advice before making these decisions.
