Vernon Building Society has launched a new range of Joint Borrower Sole Proprietor (JBSP) products.
The JBSP mortgage range allows the incomes of up to four applicants to be considered to support mortgage affordability, with non-owner-occupied borrowers typically being close family members such as parents, children or siblings.
Only the borrower who occupies the property is the owner, but all borrowers are responsible for repaying the mortgage.
Buyers will receive free valuations of up to £1,000 on the full range of JBSP mortgages.
These include the JBSP five-year fixed rate at 4.69%, a maximum loan-to-value (LTV) of 80%, no fees, and a maximum loan value of £500,000; the JBSP five-year fixed rate at 5.09%, a maximum loan-to-value (LTV) of 90%, no fees, and a maximum loan value of £450,000.
In addition, the association has introduced a JBSP two-year discount with an interest rate of 4.69% (discount of 2.91% at an SVR of 7.60%), a maximum LTV of 80%, fees of £499 and a maximum loan value of £500,000.
The product also offers 25% overpayment and no early repayment charges (versus the standard 10%).
Borrowers over the age of 18 can apply for a JBSP mortgage with a minimum property valuation of £125,000.
The mortgage term must not exceed the retirement age or 75 years of age for all borrowers.
Split repayment terms are available, allowing different borrowers to have different term lengths on the same mortgage.
Brendan Crowshaw, Head of Mortgage and Savings Allocation, Vernon Building Society
Brendan Crowshaw, director of mortgages and savings distribution at Vernon Building Society, said:
Brendan Crowshaw, head of mortgages and savings distribution at Vernon Building Society, said: “While house price growth has slowed, affordability remains a significant challenge for many homebuyers despite rising wages.”
“Deposit requirements remain high and the ratio of house prices to incomes remains well above historical norms, meaning family support is often an important way onto the ladder.”
“Our JBSP range is designed to meet these needs – allowing up to four incomes to be considered without complicating property ownership. It’s a practical solution for first-time buyers, those rebuilding after a life change or anyone facing affordability constraints.”
