Barclays has today announced the expansion of its Joint Borrower Sole Proprietor (JBSP) Mortgage Boost range, designed specifically to help struggling first-time buyers to secure larger loans in today’s challenging housing market. It is no secret that first-time buyers often draw the short straw when it comes to the property market, with deposit and mortgage lending restrictions often quashing hopes of getting on the property ladder. The Barclays Joint Borrower Sole Proprietor mortgage option available to both new and existing customers allows family or friends to support homebuyers without being named on the property deeds. Potentially helping many struggling new buyers to make the dream of home ownership a reality. In this article, I will go answer the questions “What is a joint borrower sole proprietor mortgage?” and “How does a joint borrower sole proprietor mortgage work?”, as well as going through the latest JBSP mortgage boost updates from Barclays.
How the Barclays Joint Borrower Sole Proprietor Mortgage Works
A joint borrower sole proprietor mortgage enables an additional person such as a parent, sibling, or close friend to join a mortgage application, potentially boosting the amount a buyer can borrow. For example, someone buying their first property could earn £40,000 a year on their own, but could also include their parent’s £60,000 a year towards their mortgage affordability. However, only the primary borrower will own the property, meaning the supporting applicant has no legal claim to the home.
This type of mortgage is particularly beneficial in situations where a buyer’s income alone is insufficient to secure a loan large enough to purchase a property. Generally a mortgage lender will be willing to lend you between 4.49X and 5X your income as a loan. The additional applicant’s income is factored into affordability calculations, increasing borrowing potential. So using the figures mentioned above, a standard mortgage loan for someone earning £40,000 a year is £179,600. But a joint application with the extra £60,000 salary on top could boost affordability.
Importantly, both applicants are jointly and severally liable for the mortgage repayments, meaning if the primary borrower cannot make payments, the supporting applicant is responsible for covering them.
How Much Can First-Time Buyers Borrow with the Barclays Joint Borrower Mortgage?
Barclays has provided a practical example to illustrate the benefits of its Mortgage Boost scheme:
If a first-time buyer earns £37,500 per year and has a £30,000 deposit, they might qualify for a mortgage of around £168,375, allowing them to purchase a home worth up to £198,375.
However, if an eligible family member or friend with the same income joins the mortgage application, the borrowing potential increases significantly to £270,000, meaning the buyer can afford a home worth up to £300,000.
Why Barclays’ Joint Borrower Mortgage Matters in Today’s Market
Barclays’ latest Property Insights report, that we covered in a previous article, is all about the challenges faced by first-time buyers. The average age of first-time buyers in the UK has now risen to nearly 34, compared to just over 31 two years ago. This delay in homeownership is largely due to soaring house prices and the increasing cost of deposits. With affordability being a major barrier to entering the housing market, Barclays believes its Joint Borrower Sole Proprietor Mortgage Boost could provide a lifeline to those struggling to buy their first home.
Is a Joint Borrower Mortgage Right for You?
A joint borrower sole proprietor mortgage can be an effective way to increase borrowing capacity, but it’s crucial to consider the financial commitment involved. Since both applicants are legally responsible for the mortgage repayments, the supporting borrower must be confident in their ability to cover the loan if needed. Additionally, as the supporting borrower has no legal ownership of the property, they must be comfortable with this arrangement, particularly if they are contributing to repayments without gaining equity. We would always recommend speaking to both a mortgage advisor and a solicitor before making any decisions about a joint borrower sole proprietor mortgage.
Speak To A Mortgage Professional
Barclays’ Joint Borrower Sole Proprietor Mortgage Boost presents a valuable opportunity for first-time buyers to increase their borrowing potential and step onto the property ladder sooner. With rising house prices and affordability constraints making it harder than ever to buy a home, it is a good idea to explore as many options as you can with a mortgage specialist like ourselves at Oportfolio Mortgages. Call or message our team of advisors today to see how we can help.
