Joint Applicant, Sole Proprietor Mortgages
First-time buyers can find the property market a complicated place, with the challenge of trying to get a foot on the property ladder amid rapidly rising house prices. Joint borrower, sole proprietor mortgages are one of the options to make this more accessible.
In short, a joint borrower, sole proprietor mortgage means that a parent can act as a party to the mortgage and improve the chances of approval. They aren't named on the deeds and don't live in the property.
If you'd like to learn more about a joint borrower, sole proprietor mortgage, or are interested in other first-time buyer loans, give the mortgage advisors team a call on 0330 304 3040, or drop us an email at [email protected].
How Do Joint Borrower, Sole Proprietor Mortgages Work?
In essence, more than one person applies for the mortgage and is responsible for the debt, but just one person owns the home. This type of mortgage is ideal for first-time buyers who can't afford a mortgage alone.
Some of the common reasons for choosing a joint borrower, sole proprietor mortgage include:
- Having a low income and so not passing an affordability assessment as a single applicant. Up to four people and two annual revenues are usually considered, with some lenders including up to four salaries.
- Newly self-employed people are often unable to find a mortgage, as they can't demonstrate a high enough income to cover the repayments.
- People with no credit history, usually because they haven't registered to vote or haven't ever had any previous credit borrowing.
Another benefit is that many first-time buyers struggle to save a large enough deposit. The increased security available means that they are more likely to be approved and usually secure more competitive interest rates.
