As a building society, we’ve been helping people own their own home for over 150 years. Achieving this often needs imagination as well as commitment. Our commitment to manual underwriting and using a pragmatic, common-sense approach means that, even as markets change, we can evolve to offer the kind of financial support that can help more families onto the property ladder.
Our Joint Mortgage Sole Proprietor (JMSP) mortgages use the income of a family member in order to increase borrowing capacity. Affordability is one of the most pressing issues facing home-buyers. High prices, lenders requiring higher deposits and tighter control of borrowing versus income have all meant that times can be tough for certain categories of buyer – not least the youngest.
In the face of these challenges, it’s not surprising that so many first-time buyers turn to their parents for help. Research by Legal & General in October 20201 found that more than half of first timers under 35 bought a property with financial support from their parents. By combining a borrower’s income with that of a family member means they can borrow more.
The JMSP mortgage is ideal for adult children whose income will rise in the future and for a short time need the support of a family member to get onto the property ladder. But it is also suited to older borrowers whose circumstances have changed and require the support of a family member to continue to live independently. Importantly, the family member isn’t named on the title deed of the property but does take on the responsibility of being a mortgage borrower.
Our JMSP proposition is designed to help people get the home they want when more mainstream routes appear limited. Here are a few other reasons to consider using us with your clients:
- Products are available up to 95% LTV
- Available on loans from £25,000 and up to a maximum of £1,000,000
- Affordability will be calculated using combined income from the
occupying and non-occupying borrower - Maximum age is 80 years at the end of the mortgage term based on the
oldest applicant - Competitive 2 and 5 year products available
- Free standard valuation on properties up to £500,000 on all fixed rate products
- 10% overpayments allowed per annum
At Newcastle Intermediaries, we are committed to providing excellent products and services to support you, in making home ownership a possibility for your clients.
If you would like to find out more about how we can help, contact your dedicated Business Development Manager or visit our website.
1 https://www.legalandgeneralgroup.com/media-centre/press-releases/bank-of-mum-and-dad-funds-one-in-two-house-purchases-among-under-35s-legal-general-research-reveals/
