Increased borrowing power with JBSP

Apr 2025

Background

James, 21, is at the start of his career in property and currently renting in South West London. He’s always imagined buying a home in the same area, close to work and friends, and recently received a large family inheritance of £250,000.

Despite the sizeable deposit, his income of £50,000 wasn’t enough to borrow what he needed to buy the kind of property he could see himself living in. The properties he liked were around £750,000, but based on his income alone, borrowing was capped at around £250,000 to £300,000 with most lenders.

James was feeling frustrated and unsure if he’d have to compromise on location or hold off altogether.

Main Issue - Not Enough Mortgage Capacity

James had the deposit ready and a clear idea of what he wanted, but not the mortgage to match it.

He originally assumed he’d need to take on the mortgage alone, but once we explored Joint Borrower, Sole Proprietor (JBSP) mortgages, things opened up. After talking to his dad, a 56-year-old lawyer earning £150,000 and with no mortgage on his own home, they agreed to explore this route together.

The MUVADO method

We took the following steps to help James access the kind of borrowing power needed to stay in SW London and secure a home that suited his lifestyle.

Borrowing power without JBSP

James could borrow approximately £250,000 to £300,000, depending on the lender.Even with his large deposit, this kept him well below the purchase prices of the homes he was targeting.

Borrowing power with JBSP

With his dad added to the mortgage, borrowing capacity more than doubled, meaning James could now comfortably look at properties around the £750,000 mark.

Navigating JBSP

A Joint Borrower Sole Proprietor mortgage allows an additional applicant (his dad) to support the mortgage without becoming a legal owner of the property. This was a big win for stamp duty too, because the dad wouldn’t be on the title deeds, James avoided the second property stamp duty surcharge.

There were some key considerations to work through:

• Independent legal advice: James’s dad had to seek separate legal advice to confirm he understood he wouldn’t own the property, even though he was jointly liable for the mortgage.

• Exit strategy: The plan is for James to gradually take over the mortgage as his income grows, and eventually remove his dad from the arrangement in the future.

Payment Structure

They opted for an interest-only mortgage to keep payments lower in the short term.With a clear career trajectory and expected earnings growth, James plans to make regular overpayments and look at switching to repayment when affordable.

Summary

James was able to stay in the part of London he loved without compromising on location or quality, something that wouldn’t have been possible without a JBSP mortgage.

By thinking a little differently and getting family involved in a smart, structured way, James got a foot on the property ladder on his own terms.

If you're wondering whether a parent or family member could help you take the next step, book a call below to see what’s possible.

Book in a call

Risk warnings

Your home maybe repossessed if you do not keep up repayments on you mortgage.