How a Joint Borrower, Sole Proprietor Mortgage Helped a First-Time Buyer Secure Their Dream Home

When you are a first-time buyer with big ambitions, the numbers on paper don’t always tell the full story.

One of our accountancy partners referred to a client who wanted to purchase a £1 million property with a £400,000 deposit, funded through personal savings and a family gift. The challenge was affordability.

The Challenge – Income vs Loan Size

Our client was a director of a family-owned limited company. While he held a minority shareholding, the majority was still owned by his parents and grandparents. His reported income was £50,000 a year—far below what most lenders would accept for the £600,000 mortgage he needed.

Although succession plans were in place for him to take over more of the business and increase his income, this wasn’t yet reflected in his tax returns. On paper, affordability didn’t stack up.

The Solution – Involving the Parents

The family were committed to helping him get onto the property ladder. We sourced a lender willing to offer a Joint Borrower, Sole Proprietor (JBSP) mortgage.

This meant his parents were added to the mortgage application, allowing their income to be considered in the affordability calculation. Importantly, they weren’t added to the property deeds. This avoided additional stamp duty charges for second homes.

The structure allowed him to borrow the full £600,000 needed to purchase the home.

Why This Worked

• Affordability checked twice – We confirmed that the client could afford the repayments in his own right. His parents weren’t required to make contributions, their income simply supported the application.
  
• Clear exit strategy – As his shareholding and income increased, the plan was to remortgage into his sole name at the end of the five-year fixed period, or earlier if possible.
  
• No disruption to wider tax planning – The client didn’t need to take unnecessary dividends or restructure the business, which avoided an increased tax bill.

Final Thoughts

A Joint Borrower, Sole Proprietor mortgage can be a valuable option where affordability is an issue today, but future income growth is expected. The key is having a clear exit plan and ensuring the mortgage remains affordable without relying on others long-term.

For families looking to help their children onto the property ladder, this approach can provide a flexible solution without triggering unwanted tax or stamp duty complications.

Important Information

Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.

There may be a fee for mortgage advice. The precise amount will depend upon your circumstances.

Symmonds de Lacey is a trading style of Easy Street Financial Services Ltd, which is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales (Company number 6430453). Registered address: Basepoint, 377-399 London Road, Camberley, Surrey, GU15 3HL.

We are not tax advisers. For tax advice, please speak to your accountant or a qualified tax adviser.

Information correct at time of writing – September 2025.