If you’re looking to purchase or remortgage, it can be challenging to illustrate to a lender that your income can support a large mortgage. This issue is commonly experienced in the London market, where property values are so high. Whether your salary can’t support the level of borrowing you need to purchase your next property, or your circumstances have changed, a mortgage on a joint borrower sole proprietor mortgage could be the answer.
Our product of the week is a residential product from a lender who accepts applications on a joint mortgage sole proprietor basis, which can be a fantastic way for parents to help their children onto the property ladder, or for family members to support each other with property finance.
With a flexible attitude and individual case underwriting, this lender takes account of your personal circumstances, which is ideal if you have a complex profile or background issues.
If you have a deposit of 25%, this lender can offer borrowing of up to £2million, at a fantastic 2-year fixed rate of 1.94%. Alternatively, if you only have a 20% deposit, you can borrow up to £1.5million at the same rate.
This product also allows an annual overpayment of 20%, which is ideal if you’re looking for the flexibility to reduce the outstanding debt on a yearly basis. For example, if you have a lower base salary but receive a significant bonus or commission, a product like this can be a great option. Additionally, this lender can potentially offer the loan on an interest-only basis up to 75% loan to value (LTV), providing you have a credible repayment strategy in place.
- 2-year fixed rate
- Up to £2million at 75% LTV
- Available on joint borrower sole proprietor basis
If you are a parent or family member considering supporting an application on a joint borrower sole proprietor basis, a 2-year fixed rate period is often appealing as you will not be tied to the mortgage for too long. If you only want to be on the mortgage for a brief period—perhaps until your child/family member has become more established in their career—this will give you the opportunity to leave the mortgage when the fixed rate period is up.
Whatever your requirements are, I would be happy to advise you further if you have questions about taking out a large mortgage.