When a family member returned to the UK after living overseas, buying a property proved more complicated than expected. While there was a strong income supporting the application, a combination of existing commitments, a limited UK credit history and age-related lending restrictions meant many mainstream lenders were unable to help.
The challenge
Several lenders struggled with the application due to the applicants' circumstances. Affordability assessments were impacted by existing borrowing commitments, while age restrictions limited the available mortgage term. The case was further complicated by one applicant having only a limited UK credit footprint following a period living abroad. As a result, a number of mainstream lenders were unable to provide a suitable solution.
The solution
After reviewing the available options, our adviser identified a lending solution that met the applicants' circumstances. The purchase was structured using a Joint Borrower Sole Proprietor (JBSP) mortgage. This is 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 that can be used by parents wanting to help their children onto the property ladder without becoming co‑owners.
The lender was able to take a more flexible approach to affordability and consider the applicants' circumstances in a way that better reflected their overall financial position. They were also able to offer a mortgage term that worked for the applicants' requirements and take a pragmatic view of the limited UK credit history. This combination allowed the purchase to proceed where other options had been unsuccessful.
Joint Borrower Sole Proprietor mortgages that involve age considerations, existing commitments or limited UK credit history can often require a more flexible lending approach. By exploring options beyond the high street, a solution was found that enabled the purchase to go ahead and helped the family achieve their property goals.
To talk to one of our advisers about your property goals and 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.
Any joint borrowers remain responsible for the mortgage debt and the arrangement may affect their ability to obtain further borrowing in the future. Whether a JBSP mortgage is suitable will depend on individual circumstances.
