If you want the independence of being a homeowner - without having a hefty deposit or big salary - there are a few mortgage options that you could consider. If you're lucky enough to have a willing and supportive family, they could help you buy a home with either a Guarantor mortgage or Joint Borrower Sole Proprietor (JBSP) mortgage.
These mortgages aren't as well known, and they require carefully crafted mortgage applications. But with the right expert on your side, they can be a great way to get on the property ladder. In this Guide, we’ll look at what the heck these mortgages actually are, and how they could help you become a homeowner.
JBSP mortgages work by allowing you to take out with your parents or family member, while you remain the sole owner of the property. You’re all responsible for paying the mortgage, and you’ll all need to pass the mortgage lender’s assessments, but your family won’t have a stake in your home - they’re just helping you get on to the property ladder.
When getting a mortgage with family members, they won’t be expected to stay on the mortgage forever. In fact, most lenders will want you to take over responsibility for the mortgage when you start earning more.
A JBSP mortgage could open you up to properties that you wouldn’t have been able to afford on your own. This is because your family’s income is taken into account as well as your own. It can give you a boost at the start (when you need the most help) until your situation becomes more comfortable and you can afford the repayments on your own.
UK JBSP mortgages are also pretty flexible, so you can reduce the amount your family needs to pay over time if you want to make the bulk of the payments. When you come to the end of your mortgage deal, you could then switch to a mortgage just in your name.
Yes, you’ll need to pay a deposit for a JBSP mortgage. How much you’ll be asked to put down will depend on which lender you go to and other factors such as your credit history and affordability.
However, if you’re looking at a JBSP mortgage then there’s a good chance you have a supportive family who might be willing to help you with your deposit.
Splitting a mortgage with family is a big commitment, and JBSPs are bespoke mortgages that need thorough research and carefully crafted applications. Our Mortgage Experts live and breathe the tricky stuff. They have a proven track record of matching customers with the right JBSP lenders for their needs. Make an enquiry to find out your options.
Yes, you can absolutely ask a family member to be a mortgage guarantor. Like JBSPs, guarantor mortgages aren’t as widely known, but they can be a good way to get a mortgage if you’d struggle buying the traditional way. If you can’t save for a deposit, have a bad credit history or low income, getting a guarantor mortgage can also be a great way to get the keys to your new home.
Your guarantor agrees to pay your mortgage if you can’t. That’s it. They won’t own any part of your home, they’re just making a commitment to step in if you’re unable to make repayments. It’s a big ask though - your mortgage will be secured against your guarantor’s home or savings, so it needs to be someone you trust, and who trusts you!
When deciding whether to give you a mortgage, lenders look at how much of a risk they’ll be taking. If you have a guarantor, that risk becomes smaller. You could also borrow more than you would going it alone, and you may find that you get offered more competitive interest rates.
One of the biggest upsides of a guarantor mortgage is that some lenders won’t ask for a deposit at all, meaning you could get a 100% mortgage. If you have a low income but have your heart set on a particular property, a guarantor mortgage also could allow you to borrow slightly more than you would on your own.
A lender will take your guarantor's income into account as well as your own, which is good for potentially increasing the amount you can borrow. What kind of mortgage you’ll be able to get will all depend on your individual circumstances, and which lender you go to.
Sharing a mortgage with family is a big commitment, and guarantor mortgages are bespoke financial products that need thorough research and carefully crafted applications. Our Mortgage Experts live and breathe the tricky stuff. They have a proven track record of matching customers with the right guarantor mortgage lenders for their needs. Make an enquiry to find out your options.
Our Mortgage Experts are fully-qualified with experience in bad credit, self-employed and complex mortgages. They have a proven track record of getting mortgages for people who’ve been rejected elsewhere.