As single people find it harder to get onto the property ladder, without the benefit of a partner with a second income, we are often asked for ways that a family member can help.
I’ve been helping people with their mortgage needs for 20 years, and this option is very popular once we tell clients about it, but most have never heard of it before.
It is called Joint borrower, Sole Proprietor.
Technically not a guarantor mortgage, but this type of mortgage allows a single person to get help from another person to buy a property.
How does it work?
Both parties go on the mortgage, but only one name will go on the deeds, allowing the other person to avoid second home stamp duty (if he or she is already a homeowner), or avoid accruing capital gains tax as they will never own the mortgaged property.
The mortgage is assessed on the income of both parties, meaning a higher amount could be borrowed than just the sole person on their own.
This type of scheme is useful for sole borrowers who are...
- Taking out a mortgage to buy a home
- Remortgaging
- Changing the terms, for example by buying a former spouse out of a joint mortgage.
If you want to know more, get in touch to book an appointment via our Contact Us page.
We also have a free guide for First Time Buyers available to download from our website which is packed with all sorts of useful information for those looking to get on the ladder.
Watch our Introduction to Mortgages video on our YouTube page
Willow Tree Financial Services are a Financial Adviser based in Polegate, East Sussex, UK. We specialise in Financial Planning, Mortgages, Investments & Pension Planning, Protection & Insurance Wills, Trusts & Estate Planning.
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