Joint Borrower Sole Proprietor (JBSP) Explained

Boost how much you can borrow with the help of our Joint Borrower Sole Proprietor mortgage.

If you're looking to buy your first home or to remortgage, but haven't quite got enough income to borrow what you need, you may be able to with the support from close family members. Our Joint Borrower Sole Proprietor mortgage, allows you to use the income of up to four people to apply for a residential mortgage.

How does it work?

Although the name suggests this mortgage is just for a sole proprietor (one person to reside in the property), our Joint Borrower Sole Proprietor mortgages actually allows up to two occupiers to apply and live in the property together. 

We will then also consider the income of up to two close family members to help support your mortgage application. They will not live in the property and are known as non-occupying borrowers. 

This means that we can accept up to four applicants in total, combining the income of up to four people means you could borrow more.

Only the occupier(s) of the property will be named as the legal owners. Any close family members added to the mortgage, as non-occupying borrowers, will be responsible along with the occupier(s) for the total mortgage balance including the monthly mortgage payments. However, they will not live in the property or be named as legal owners on the title of the property.

It's available across our range of standard residential mortgages, but doesn't include our specialist mortgages such as Shared Ownership, Help to Buy and Credit Assist, and is subject to our lending criteria at the time of application. 

What if my circumstances change?

In the future if you can afford the mortgage on your own, you can apply to remove the non-occupying borrowers who have assisted you, providing the remaining occupier(s) meets our lending policy at the time. 

We ask, as part of the mortgage process, that all non-occupying borrowers take independent legal advice, to make sure they fully understand their commitment and the potential consequences of their decision. Any costs incurred for this advice will be payable by the non-occupying borrower.

Book an appointment to find out more

Who is defined as a close family member?

A close family member could be your

• Spouse, Civil Partner
• Parents
• Siblings
• Grandparents
• Aunt, Uncle, Niece, Nephew
• Children

Important things to consider

The following information is important if you are a family member intending to act as a non-occupying borrower.

• As you will be a party to the mortgage, you are all jointly and individually responsible for the whole mortgage balance and monthly repayments. Meaning you are all liable for the mortgage payments if the occupier(s) is unable to make the required monthly payment. Failure to make payments when required could result in legal action being taken against you.
• A mortgage is a long term debt. You should consider what future commitments/plans you may have and if these may be affected by your decision to support the mortgage.
• You could be required to support the borrower(s) for the duration of the mortgage term. The Cambridge would only be prepared to release you from your agreement if we're satisfied that the remaining borrower(s) can demonstrate that the loan remains affordable without your support. Affordability of the remaining borrower(s) would be determined using our lending criteria at the time of your request to be removed from the mortgage.
• Entering an arrangement by which you are committing yourself to repayment of a long term debt needs your careful consideration, therefore we insist that you take independent legal advice and sign a declaration confirming this.

More information

If you'd like to find out more information on our Joint Borrower Sole Proprietor mortgages book a mortgage appointment with one of our advisers or give us a call on 0345 601 3344 and we'll be happy to help.

 

 

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.