Vernon Building Society has announced that it has launched a new Joint Borrower Sole Proprietor (JBSP) range of products.
The JBSP range allows for up to four applicants' incomes to be considered to support mortgage affordability, with the non-occupying borrowers usually being close family members such as a parent, child or sibling. Only the occupying borrowers, the proprietors, are property owners, but all borrowers have responsibility for mortgage repayments.
Borrowers aged over 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 for all borrowers. Split repayment terms are available, allowing different borrowers to have separate term lengths within the same mortgage.
Buyers will receive free valuation of up to £1,000 on the full range of JBSP mortgages, which includes a five-year fixed rate at 4.69%, 80% maximum LTV and no fee with a maximum loan value of £500,000, a five-year fixed rate at 5.09%, 90% maximum LTV and no fee with a maximum loan value of £450,000, and a two-year discount at 4.69% (2.91% discount from SVR of 7.60%), 80% maximum LTV and £499 fee with a maximum loan value of £500,000. This product also offers 25% overpayment without incurring early repayment charges, as opposed to the standard 10%.
"While house price growth has slowed, affordability remains a significant challenge for many buyers despite wage increases," said Brendan Crowshaw, head of mortgage and savings distribution at Vernon Building Society. "Deposit requirements are still high, and price-to-income ratios remain well above historic norms, meaning family support is often an essential route to getting on the ladder."
"Our JBSP range is designed for 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 life changes, or anyone facing affordability constraints."
"With features like split repayment terms, enhanced overpayment options, and free valuations up to £1,000, these products give brokers the tools to help clients in a market that still demands flexibility. We remain committed to supporting complex cases and those underserved by mainstream lenders through individual underwriting and options for purchase or remortgage, including acceptance of gifted deposits."
