Suffolk Building Society has implemented a series of important reforms to its lending criteria, welcoming more and more UK borrowers to its products. This comes after enhancements to Joint Borrower Sole Proprietor (JBSP) mortgages, improved lending conditions for new build flats, and the removal of minimum income requirements on later life lending.
JBSP Mortgages up to 90% Loan-to-Value (LTV)
Suffolk Building Society’s key news is an extension of lending on Joint Borrower Sole Proprietor (JBSP) mortgages up to 90% LTV. JBSP mortgages are designed to help buyers, often first-time buyers, onto the housing ladder with the help of a close relative. A parent, grandparent, or brother or sister can sign up for the mortgage as a borrower, making affordability more feasible, without being named on the property title.
Key features of Suffolk’s JBSP criteria:
- 90% LTV option.
- No restriction if all applying are retired, or 90 maximum age at term end in other cases.
- Non-proprietor may transfer the deposit (if not living in the property).
- Non-proprietor may live in the property (if not transferring).
- Four maximum applicants (two for expat borrowers).
- Must be close relatives, e.g., parents, grandparents, siblings, stepfamily, adopted family.
This is a specially attractive option in my eyes, for families that want to lend to young buyers entering the property market but are not ready to be tied to shared ownership.
New Build Flats Now 90% LTV
Alongside the JBSP reforms, Suffolk Building Society has also raised lending on new build flats to 90% LTV. Historically, lenders have taken a risk-adverse approach to new build homes and charged bigger deposits. In offering lending up to 90% LTV, Suffolk is giving borrowers more opportunities to purchase new, fuel-efficient homes.
Other Suffolk BS New Build Criteria
- Maximum of 10 storeys considered.
- Deposits provided as gifts.
- Will look above good quality commercial units.
- Higher income multiple of 5.49x for borrowers with 12 months’ rental experience.
- No age restriction at term end (later life LTVs apply).
- Maximum builder incentive 5%.
- Non-simultaneous completions allowed.
This renders Suffolk’s product highly competitive within the new build mortgage sector, particularly for first-time buyers or those in order to move up the housing ladder.
Later Life Lending Criteria Simplified
Suffolk has also removed the minimum income requirement on later life borrowing. This step could bring more retired borrowers access to mortgage products on offer, especially those looking for some flexibility in their own financial arrangements.
Speak to a Joint Borrower Sole Proprietor Mortgage Adviser Today
If you’re considering a JBSP mortgage, looking to buy a new build flat with a smaller deposit, or exploring your later life lending options, Oportfolio Mortgages can help. Our team specialises in finding the right mortgage product for your individual circumstances. Call our team today for a free free, no obligation initial chat with one of our advisers.Â
FAQ – JBSP and New Build Mortgages
Q: What is a Joint Borrower Sole Proprietor (JBSP) mortgage?
A: A JBSP mortgage allows a family member to make a contribution towards higher affordability through becoming a borrower against the mortgage without being named on the property title.
Q: Who can join as a joint borrower on a JBSP mortgage with the Suffolk Building Society?
A: Immediate family members such as parents, grandparents, siblings, stepfamily, and adoptive family.
Q: What is 90% LTV for borrowers?
A: It is possible to borrow 90% of the property value and leave the deposit at 10%.
Q: Can I use a gifted deposit on a new build flat with Suffolk?
A: Yes. Suffolk Building Society will accept gifted deposits on new build flats at 90% LTV.
Q: Is there an age limit on Suffolk’s JBSP or later life mortgages?
A: For JBSP, there is no age limit if all the applicants are retired, or 90 at the end of the term otherwise. For later life lending, the income minimum requirement has been removed.
