Requirement

Our client, a go getter by nature, approached me looking to purchase her first home, a period garden maisonette in East London for £500k, ahead of a significant pay increase in a year's time when she completes her solicitor training contract with a top city law firm

Solution

Her present pay would only achieve a fraction of the mortgage needed. We therefore needed a workaround for what essentially is a timing issue.

The answer came in form of her partner, a homeowner already and not looking to move, but happy to support his partner on her journey.

We achieved the borrowing needed through a 'joint borrower sole proprietor' mortgage, where the partner is a joint borrower but not a named owner, meaning his income could be included to support the application but stamp duty still be calculated on a first time buyer basis saving c.£20k.

A flexible penalty-free mortgage product was recommended enabling the clients to review the mortgage in one year, at which point we plan to refinance and Mr removed as a borrower.

Popular uses for Joint Borrower Sole Proprietor mortgages

• Parent helping child
• Child helping parent
• Tax planning and efficiency