Joint Borrower Sole Proprietor Mortgages – A Smart Solution for First Time Buyers

Buying your first home is rarely straightforward, especially if your income on paper doesn’t reflect your true ability to afford the mortgage. For company directors and business owners, this is a common challenge.

In this case study, we explain how one of our accountancy partners referred a client to us who faced this exact problem—and how a joint borrower, sole proprietor mortgage helped him purchase the home he really wanted.

The Challenge – Low Income on Paper

Our client was a first-time buyer looking to purchase a £1 million property with a 40% deposit. The funds were coming from a mix of personal savings and a family gift.

On paper, the difficulty was clear:

• The client was a director of a family business but only held a minority shareholding.
  
• His declared income was £50,000 per year—far below the level typically needed to support a £600,000 mortgage.
  
• Succession plans were in place for him to take on more of the business and increase his income, but this was not yet reflected in his latest tax return.

Although the client could comfortably afford the monthly repayments, traditional affordability rules meant mainstream lenders would not approve the loan in his sole name.

The Solution – Joint Borrower, Sole Proprietor

We needed a lender who could look beyond the standard model. The answer was a joint borrower, sole proprietor (JBSP) mortgage.

This allowed the client’s parents to go on the mortgage application and have their income considered—without going on the property deeds.

The benefits were significant:

• The parents avoided paying second-property stamp duty, as they were not named on the deeds.
  
• The client was able to borrow the full £600,000 required.
  
• Monthly payments were affordable in his own right, and the parents were not contributing towards them.

Crucially, we agreed on a clear exit strategy: at the end of the five-year fixed term (or sooner), the parents would be removed from the mortgage as the client’s shareholding and income increased.

Why This Worked

This structure meant the client could move forward with his purchase without:

• Restructuring his income or paying unnecessary additional tax.
  
• Delaying until future tax returns caught up with his actual earnings.
  
• Compromising on the property he wanted.

Instead, he secured the home with a clear path to taking full ownership of the mortgage in the near future.

Final Thoughts

Joint borrower, sole proprietor mortgages can be a powerful tool in the right circumstances—particularly for first-time buyers, company directors, and families looking to support the next generation onto the property ladder.

Your home may be repossessed if you do not keep up repayments on your mortgage.

Some forms of Buy to Let mortgages are not regulated by the Financial Conduct Authority.

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 – November 2025.