The Skipton Building Society has introduced its new Joint Borrower Sole Proprietor proposition for new and existing customers through its intermediaries.
The Joint Borrower Sole Proprietor policy will mean Skipton will accept up to four applicants upon the mortgage; however, not all applicants are required to be the legal homeowners although it is the choice of the non-proprietor whether to be on the title or not.
The main borrowers will be the legal owners of the property, whilst the supporting borrower (also known as non-proprietor) will be treated as a main borrower – though unlike the main borrower they will not be named on the title deeds as a registered owner and therefore will not be required to pay the additional stamp duty due to the ownership of the supporting borrower’s property.
There are no restrictions around the relationship between the main borrower and the supporting borrower and there are also no restrictions on the ratio of borrowers to supporting borrowers.
Alex Beavis, Skipton’s Head of Mortgages, said; “I’m really excited about our launch of Joint Borrower Sole Proprietor mortgages. JBPS probably isn’t the most well-known type of mortgage, but is a fantastic way for parents, guardians, friends or family to support would-be first time buyers with the significant affordability challenges posed by accessing the housing ladder.
“Hopefully our launch into this market can raise awareness of this growing product area and demonstrate our continued commitment to finding real life lending solutions for brokers and their clients.”
The Joint Borrower Sole Proprietor will be available up to 95% LTV and in England, Scotland and Wales.
Jane Benjamin, director of mortgages, Sesame and PMS, added: “House prices have risen significantly in recent years and affordability is a major challenge for first time buyers attempting to get onto the property ladder.
“This enhancement from Skipton for Intermediaries is great news and demonstrates a commitment to support the market as a whole, from new borrowers through to the mortgage brokers who represent them.”