Eli Kosiner
Case study 1 – The benefits of joint-borrower-sole-proprietor mortgage
At a glance:
- Our client is a father in his mid-70s with non-conventional provable income by way of a Trust
- His son (early 30s) has a low income, insufficient to secure his desired mortgage.
- We help to secure a repayment joint-borrower-sole-proprietor (JBSP) mortgage on a 21-year term using our client’s income.
Using a joint-borrower-sole-proprietor mortgage to purchase a main residence
We were recently contacted by a client in his 70s who was looking to help his son (in his early 30s) get onto the property ladder.
While the father had non-conventional provable income by way of a Trust, his son was currently on a low income, with insufficient regular income to secure a mortgage.
Let’s take a closer look at what happened next.
Adding our client to his son’s mortgage application allowed us to secure a competitive agreement
While our client had non-conventional provable income, his son had a low income, so needed help to secure a mortgage for a property that would be his main residence.
This made a joint-borrower-sole-proprietor (JBSP) mortgage an attractive proposition. A JBSP mortgage allows an individual to buy a property with the help of up to four people, including an individual’s parents. A combination of applicants can make qualifying for a mortgage easier.
Remember, though, that only one person ultimately owns the property.
In this case, we were able to secure a competitive repayment mortgage on just a 21-year term based on the father’s income.
This enabled our client’s son to get onto the property ladder at a time in his life when it would have proved extremely difficult, if not impossible, based on his income alone.
Case study 2 – Non-conventional income can be used to secure a competitive remortgage
At a glance:
- A client in his mid-70s with no conventional income is looking to remortgage.
- We are able to secure lending of £1.5 million based on the value of his self-invested personal pension (SIPP) and other investments.
Using non-conventional income to secure a remortgage at a competitive rate
There are many reasons why you might opt to remortgage your main residence as a high net worth individual, from consolidating debts to making home improvements or taking advantage of more competitive rates.
Recently, a client approached us about a remortgage for a specific reason. In his mid-70s, our client was looking to release some capital to make a special, one-off purchase.
As a retiree with a high net worth, he had no conventional income, but we were able to help. Here’s how.
Our client’s pension value was sufficient to allow for large lending
While our client had no conventional or employment income, his large self-invested personal pension (SIPP) value, combined with other invested funds, was sufficient to prove affordability.
We were able to secure lending of £1.5 million at a loan-to-value of 50%, allowing our client to make their dream purchase.
As experts in our field, we could help you to secure the mortgage or remortgage you need, whatever your reasons, so get in touch to see how we could help.
Get in touch
To find out how we can help you secure the right mortgage for you or your loved ones, please get in touch. Contact us online or call 020 7400 4700.
Please note
Your home may be repossessed if you do not keep up repayments on a mortgage or other loans secured on it. The Financial Conduct Authority does not regulate commercial mortgages. Think carefully before securing other debts against your home.
