Newcastle Intermediaries has revised its Joint Mortgage Sole Proprietor (JMSP) range to include a five-year fixed rate product.
The five year fixed rate JMSP is available at 3.55% (5.1% APRC) and offers £500 cashback to help with legal or moving fees, free standard valuation, and 10% overpayments per annum.
Early repayment charges apply on the five year fix at 5% until 31/03/22, 4% until 31/03/23, 3% until 31/03/24, 2% until 31/03/25 and 1% until 31/03/26.
The product is available up to a maximum LTV of 80% and those aged 18 to 80 are eligible.
JMSP enables family members to help close relatives own their own home, increasing the borrowing power of the applicant by allowing them to apply for a mortgage using the supporting income of a family member. Mortgage affordability is calculated using income from both the occupying and non-occupying borrower. Although the mortgage will be in joint names, the occupying borrower will own the property and will be the sole name on the title deeds.
John Truswell, head of intermediary mortgages at Newcastle Building Society, said: “We’re pleased to be extending our JMSP offer at a time when access to parental assistance mortgage products might be limited. Many would-be home buyers are looking to explore different options and I’m confident these products will help brokers find the best solution for their clients.
“We’d usually expect JMSP to be used by parents to support first-time buyer adult children, but they can also be used to support older generations who would benefit from the support of a family member to continue to live independently.”