Joint Borrower Sole Proprietor

As a first-time buyer, you benefit from a stamp duty exemption up to a certain threshold. That means if the property you’re buying is valued within that threshold, you don’t have to pay any stamp duty. If your property is valued higher than that amount, you only pay the stamp duty rate that’s applicable for the remaining portion.

The first-time buyer stamp duty relief rates were updated as of 1^st April 2025. Currently, no stamp duty is payable up to a value of £300,000. For the portion between £300,001 and £500,000, 5% will be payable.

For example, if you buy your first home for £475,000, the first-time buyer stamp duty you need to pay is calculated as follows:

• 0% on the first £300,000: £0
• 5% on the remaining £175,000: £8,750

This makes the total stamp duty payable on your purchase the sum of £8,750.

If buying a property valued over £500,000 as a first-time buyer, you won’t be able to claim any stamp duty relief.

Yes, some joint borrower sole proprietor mortgage providers offer buy-to-let mortgages. Generally, they stipulate that a higher deposit has to be paid for this type of JBSP mortgage. As an example, a lender may be willing to offer up to a 95% loan-to-value (LTV) ratio for a standard residential JBSP mortgage but will offer a lower LTV of 75% for a buy-to-let JBSP mortgage.

Lenders differ in their criteria when it comes to the age limit for a JBSP mortgage. Some, for example, may stipulate that borrowers mustn’t be over 70 years old when the mortgage term ends. Others may set 80 as the age limit at the end of the mortgage term. Some lenders may accept a non-owner borrower who will be 80 if the sole proprietor accepts responsibility for a larger share of the mortgage loan, such as 70%.
The mortgage term for your JBSP mortgage will be determined by the age of the oldest borrower. Bear in mind that the shorter the term, the higher your monthly payments will be.

With this type of mortgage, each borrower is jointly and severally liable for making the mortgage payments. This means that if the sole proprietor defaults on the payments, the non-owner borrower is liable to pay them.

Yes, some lenders allow married couples to take out JBSP mortgages. In this case, you are both named on the deeds so you both have ownership of the property. The borrower who has applied for the mortgage with you both to help you out financially isn’t named on the deeds. This means that they are liable for the mortgage payments but have no legal claim over the property.

A joint mortgage allows two to four people to buy a property together. Each person is named on the property deeds and the mortgage. This means that each person is a co-owner of the property and is jointly liable for the mortgage payments.

With a joint borrower sole proprietor mortgage, each person is jointly responsible for the mortgage payments but only one person is named on the property deeds. The non-owner borrower is, therefore, financially helping the other borrower to become a homeowner. The non-owner borrower has no financial claim over the property. They also cannot usually live in the property, depending on the lender’s stipulations.

If you, as the legal property owner, should pass away before the end of the mortgage term, the executors of your will would need to put the property up for sale. The proceeds of the sale would then be used to repay the outstanding mortgage debt. The non-owner borrower would have to keep making the full mortgage payments until the property is sold.

With a joint borrower sole proprietor mortgage, each borrower is named on the mortgage and is jointly responsible for making the mortgage payments. This means that if one of you is unable to pay your share, the other is legally liable. If a mortgage payment is missed or a late payment is made, both of your credit scores will be negatively affected. This is regardless of whose fault it is, as you have a financial association with each other. Having missed or late payments on your credit files can affect both of your abilities to secure a loan in the future.

These issues highlight the importance of trusting each other completely before entering into a JBSP mortgage. Any negative aspects can have a big impact on the relationship between you and the other borrower so this arrangement needs to be considered carefully.

A joint borrower sole proprietor mortgage is ideal for anyone needing help with the affordability of a property, while benefitting from sole ownership of it. It’s also ideal for anyone who has a poor credit record and needs help from someone with a strong credit profile to be accepted for a mortgage. A JBSP mortgage is also a great option for someone who wants to help out a loved one without having to become a co-owner of the property. This type of mortgage suits a host of situations, as detailed below.

First-time buyers

First-time buyers often struggle to save adequate deposits or meet the affordability requirements for a mortgage. This arrangement allows someone else to go on the mortgage, which takes their income into account as well as that of the first-time buyer. This boosts their affordability and they can also pool their savings to put down a bigger deposit.

Newly-employed

Those who have just started in their careers may have a low starting salary. As a result, their salary may simply not be sufficient when applying for a mortgage on their own. Applying with another borrower, however, maximises their borrowing potential.

Self-employed workers or contractors

Self-employed workers or contractors typically have irregular incomes. This can make it harder to be accepted for a mortgage. Having the support of a borrower who is in full-time employment helps to reduce the lender’s risk and improves affordability for the mortgage.

Existing homeowners

Existing homeowners are often unable to afford buying a new home, leaving them stuck in their current situation. Having the financial boost of another borrower on the mortgage, who won’t also be on the deeds, enables them to move up the property ladder without impacting their property ownership. 

Borrowers with a poor credit rating or a lack of credit history

Borrowers with a bad credit rating or a lack of credit history can struggle to be accepted for a mortgage. Adding another borrower to the mortgage who has a strong credit history counteracts this issue.

Those who want to help without owning the property

Family members often want to help their loved ones get a foot on the property ladder or move up it. This type of arrangement enables them to help financially without having to be named on the property deeds. This saves them from having to pay a stamp duty surcharge for an additional property.

Younger family members helping older relatives

Younger family members can help older ones to stay in their current homes or buy new ones. A drop in income due to retirement can affect a person’s affordability for a mortgage. A younger relative can be added to their mortgage to help with this.

Those who are getting divorced

Married couples who decide to get divorced can get support from family members. If one half of the couple wants to keep the property but can’t afford to buy out their spouse, a family member can be named on the mortgage to enable them to do this.

The amount of deposit you need to pay depends on the lender as each has its own criteria. However, you can typically expect to pay a minimum of 5% to 10% of the property’s value. Having a lower deposit restricts the lenders that can be approached and, subsequently, the deals you have access to. The more you can pay, however, the wider the choice of lenders and the more deals will become available. Generally, the bigger your deposit, the better the interest rates you’ll be offered.

One benefit of a JBSP mortgage is that with a joint application, you can pool your savings to raise a bigger deposit. A higher deposit lowers the loan-to-value (LTV) ratio, which reduces a lender’s risk. As such, this provides access to more competitive interest rates.

If you’ve used a deposit scheme, such as Deposit Unlock, to raise the funds you need, just bear in mind that some lenders won’t accept applications using certain schemes. Our mortgage brokers know which lenders accept different deposit schemes so they will approach the right ones on your behalf accordingly.

As a niche type of mortgage, not all lenders offer JBSP products. A specialist mortgage broker, such as Trinity Finance, knows which lenders deal with this type of mortgage and what their differing criteria are. These can include restrictions on the number of applicants, how your income is assessed, age limits and scheme restrictions. Some lenders won’t allow certain types of JBSP mortgage arrangements, such as interest-only or discount mortgages. Some restrict what a JBSP mortgage can be used for — for example, they may not approve a JBSP loan if you’re buying a second home. A broker can help navigate these criteria and match you with the most suitable lender for your circumstances.

With a sole ownership structure and multiple mortgage applicants, a joint borrower sole proprietor mortgage is complex to arrange. An expert JBSP broker will ensure that the extensive documentation is correctly prepared, the borrowing capacity is maximised and the application is correctly structured for both you as the sole proprietor and the non-owner borrower. The broker will also negotiate for the best deal on your behalf, ensuring it meets your mortgage goals as well as the supporting borrower’s requirements.

Yes, you can get a joint borrower sole proprietor mortgage if you’re self-employed. Whilst the application process can be more complex because your income isn’t considered to be as stable as for someone who is employed, this doesn’t mean that you can’t benefit from having a JBSP mortgage.

Instead of asking you to provide payslips and P60 forms, which an employed applicant would be asked for, the lender will usually require the following documentation from you:

• 2 to 3 years of certified accounts
• SA302 forms for the last 2 or 3 years, or a tax overview from HMRC

If you haven’t been trading for that long, you can still apply for a JBSP mortgage. Some lenders are willing to accept 1 year of accounts as well as a projection, plus an SA302 form for 1 year.

Our mortgage brokers can discuss your self-employed circumstances and different lender requirements with you, offering guidance on how to improve your chances of having a successful application. If the borrower who is supporting you with this mortgage is in full-time employment, the stability of their income will help to reduce any risk for the lender.

Should the non-owner borrower pass away, you need to get in touch with the lender to make them aware. As with any mortgage, the payments still have to be made but they may be able to offer support while you try to make other arrangements. If you’re unable to make arrangements and cannot afford the mortgage payments on your own at that point, you may have to sell the property.
It’s best to get in touch with our mortgage brokers if the joint borrower has passed away. We know this is a difficult situation to deal with and can liaise with the lender on your behalf and offer support when you need it the most.

It can be more challenging to get a JBSP mortgage with bad credit but it’s not impossible. Lenders vary in how they look at bad credit issues but, generally, they take into account the severity of the issue, how long ago it occurred and the amount involved. Our mortgage brokers will approach the most appropriate lender on your behalf to meet the needs of your situation.

Up to four people can usually apply for a JBSP mortgage together. Some lenders, however, stipulate a lower number of applicants, such as two.

Lenders differ in their flexibility on who can assist you as the non-owner borrower. Some don’t have any restrictions on the relationship between you, even allowing friends to apply, not just family members. Others insist on a familial connection, with some accepting immediate family members only.

With a JBSP mortgage, each borrower’s income is taken into account for the affordability criteria, increasing your borrowing potential. As each borrower is named on the mortgage, you are jointly liable for the mortgage payments from the start of the mortgage term.

For a guarantor mortgage, the person acting as your guarantor needs to provide the lender with some form of security. This is in case you default on the mortgage and the security can be their own property or their savings. Your guarantor will only become liable for the mortgage payments if you’re unable to make them.

This type of arrangement is hard to find but there are some lenders who will agree to it. Usually, though, there have to be exceptional circumstances. Having a property with joint owners when one is not liable for the mortgage payments considerably increases a lender’s risk.

A JBSP mortgage is designed to enable someone to buy a property with financial help from a joint borrower. The aim is for the sole proprietor to take over the mortgage payments on their own at a later date when they’re in a position to do so. At that point, as long as the lender agrees, the sole proprietor can remortgage, allowing the non-owner borrower to be released from the JBSP mortgage arrangement.

Aside from this, circumstances change and the non-owner borrower may wish to be released from the mortgage arrangement. For example, they may want to buy a property of their own. In this instance, you need to contact the mortgage lender. The lender will then decide whether or not this is possible based on your ability to repay the mortgage loan on your own. If so, they will issue a deed of release.

Alternatively, you and the non-owner borrower can agree to sell the property and repay the mortgage loan from the proceeds.

As the non-owner borrower has a financial obligation with a JBSP mortgage, it may affect their affordability when it comes to being approved for another mortgage. They must declare their JBSP mortgage commitment to a mortgage broker or lender when applying for one. As long as they meet the new lender’s affordability criteria despite also being legally liable for the JBSP mortgage payments, they can get another mortgage for another property.