Unfortunately, it’s not uncommon these days that we see clients where their borrowing potential is not as much as they were hoping.

This is especially difficult in the South-East where our offices are based, where you are hard pushed to find a flat for £200,000.

Available Options

So, let’s look at a couple of options that are available to you which could help boost the amount that you are able to borrow.

Joint Borrower, Sole Proprietor (JBSP)

JBSP mortgages allow either 1 or 2 third parties (often parents) to contribute to a mortgage by being party to the mortgage, however they would not be on the Title Deeds or have any legal stake in the property. It means the lender will consider the third parties’ income when assessing whether the mortgage is going to be affordable without the purchaser having to share ownership to the property.

This scheme is more common in First Time Buyers and over the past 2 years the number of enquiries for the scheme have rocketed, given the increasingly high financial bar that they are faced with.

The Bank of Mum and Dad

It is not uncommon to see clients who have been renting privately, to find that they are struggling to get a deposit together. We can see clearly that they have been affording high rent payments yet often they do not meet a lenders affordability for the mortgage even though we can see that the monthly mortgage payment will be less than they are already paying. More and more often we find that parents and grandparents are willing to help with a deposit.

This can either be from their personal cash and savings or sometimes the parents are willing to raise the capital from their own homes which will enable them to Gift money to their children and grandchildren. This can very often mean that the clients are able to borrow a lower percentage of the property purchase price.

The advantage of this is that they are likely to fall into being able to secure a mortgage at a lower interest rate with more affordable monthly repayments. These are just 2 ways to help get you to where you want to be in the housing market.

I Can Help

If you would like a chat about your options either with or without family backing, then please get in touch here or call 01702 746811 and we will be happy to look at possible options for you.

We always welcome family members who you would like to take part in discussions, so just let us know and we will arrange it.

Photo courtesy of Canva April 2022