Joint Borrower/sole proprietor:

By Prospect Mortgage Services

What is a joint borrower/sole proprietor?

A mortgage option that allows first time buyers with a lower income to get support, usually from a family member.

if an individual has too low of an income for a mortgage, someone else (usually a family member) can step in and financially support them by becoming an additional applicant on the mortgage. They effectively become a guarantor. On paper, the additional person is added onto the mortgage to increase the chances of the lender having confidence to let you borrow their money. The lender may also be more likely to increase the borrowing amount due to there being salaries from both the applicant and the supporting individual. However, the additional applicant does not become a legal owner of the property – they are just there to assist financially.

With house prices at record highs, and incomes not acting in line with expenses of today, having the reassurance that someone is there to help if money becomes tight takes away some of the stress and anxiety in such challenging economic times.

This scheme enables first-time-buyers to get themselves onto the property ladder and we believe there should more awareness of its existence now more than ever.

Circumstances where this type of mortgage would be beneficial:

  • Your income is too low: Many lenders accept up to four applicants and in most instances, consider two incomes.
  • You are newly self-employed: You have not got enough income for a mortgage.
  • Your credit score is low: A supporting individual with a good credit score could increase the chances of the mortgage being approved.

Prospect Mortgage Services advise on joint borrowing and sole proprietor enquiries. We provide high quality advice and a speed of service, responding to queries within just 24 hours. Our team support you every step of the way at, what should be, an exciting and pivotal time of life.


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