Joint borrower sole proprietor mortgage for £2million property

GET MORTGAGE ADVICE FROM ANDREW

No matter the complexity of your situation, it’s likely Enness Private Office can help. For example, I was recently able to arrange a creative resolution—a joint borrower sole proprietor mortgage—for a client in a difficult situation.

My client was separating from her husband, and was looking to buy him out so she could continue living in the property. She therefore needed to remortgage and borrow an additional £700,000 for total borrowing of £1.2million.

Sadly, her income meant she would not be able to take out a mortgage on this scale. As she was unable to meet the affordability requirements for such a large loan, she would need somebody else’s income to be taken into consideration. She was also hoping to secure the mortgage on an interest only repayment basis, to minimise her monthly outgoings.

Fortunately, her brother had offered to help. However, as he already owned a residential property, he did not want to end up on the deeds of the property, as this would leave him liable to second home stamp duty. My client therefore approached Enness for advice on how they could structure their refinancing.

OUR SOLUTION

I suggested they move forward on a joint borrower sole proprietor basis, which would enable the brother’s income to be used when calculating the affordability of the loan. On a joint borrower sole proprietor mortgage, only one of the applicants is listed on the deeds – an ideal solution for this case.

Working with the private banking arm of an excellent retail bank, I was able to secure this facility for my client at a low rate on an interest only repayment basis. I have also referred this case to the Enness Insurance team, so my client can rest assured they have the correct protection in place.

Although difficult to arrange due to the limited number of lenders who will offer them, joint mortgage sole proprietor mortgages can be a creative solution which suits a wide variety of clients. As this case illustrates, no matter the complexity of your requirements, it’s likely Enness Private Office can help.