Joint Borrower Solutions

Who did we help?

James (30) is an apprentice IT support worker for a large pharmaceutical company earning £33,000 a year. His dad David (52) is a senior engineer earning £53,000 and his mum Judith is retired and receives a private and state pension. Tony also has a private pension and will qualify for a state pension. Together their total pension income is £70,000.

David and Judith have a small mortgage of £66,000 on their £250,000 residential property. They also own a Buy-to-Let (BTL) property with an outstanding balance of £74,000 on a value of £210,000. The rent received is £1,400 a month which covers the mortgage payments of £400 a month.

"James’s dad was happy to help get his son on the property ladder but didn’t want to be on the title deeds."

What did he need?

James was keen to buy his first house and was looking to borrow £140,000.

He had managed to save a deposit and his only other significant financial commitment is a car loan which costs him £175 a month.

Why was he facing challenges?

As an apprentice, James’s salary is capped but upon completion of his apprenticeship he will earn £41,000 and this will increase each year.

His dad was happy to help get his son on the property ladder but didn’t want to be on the title deeds. We managed to find a solution

How did we help?

Using a lender with a Joint Borrower Sole Owner solution proved the key to home ownership for hard working James. We were able to have his mortgage approved on the basis that his income will improve, his dad’s current income and the overall financial stability of both parties.

As well as allowing James to buy, this product mean’t that James was able to use his First Time Buyers stamp duty allowance and his parents avoided paying any second property tax as they are not named on the deeds.