Joint Borrower Sole Proprietor Mortgages

Our joint borrower sole proprietor residential product allows parents, step-parents and grandparents to join their child or grandchild on their mortgage by including their income in our affordability assessment – without needing to be on the title deeds and jointly owning the property. These products are for purchase and repayment applications only and offer a LTV of up to 90 per cent.

Key Mortgage Lending Criteria
  • Up to 4 applicants accepted utilising all 4 incomes for affordability
  • No minimum income criteria
  • No exit strategy required for parents/grandparents
  • Repayment only

When processing a JBSP application to Principality, you must complete the following forms: 
  • Joint Borrower Sole Proprietor Ownership details - This form will need to be completed on submission of an application
  • Certificate of Independent Legal Advice (CILA) - This form will need to be completed on completion of an application

The following forms may also need to be completed in certain situations: 
  • Waiver Form - This form will need to be completed when the parent is providing the deposit for the purchase

These forms are available to download from our Useful Documents page by clicking here.

*Subject to lending criteria and affordability

Frequently Asked Questions
Will there be a dedicated product?

Yes – there will be products specifically for JBSP applications. The society will only accept a JBSP case where these products have been selected.

Who's household expenditure will need to be inputted on affordability?

Household expenditure will be based on the regional data for the security address. There is no need to complete the budget planner on most cases as regional data will be used to calculate affordability. You may need to provide actual household expenditure if any of the applicants have unusually large expenditure (e.g. Private school fees).

Do I need to include parent's mortgage debt in affordability?

Yes, affordability must cover the aggregate lending of all mortgage debt, including any mortgages held by parents. Total affordability will need to cover all parties’ current mortgage(s) and the amount being applied for.

Example:

Parents/grandparents outstanding mortgage is £152000, loan amount applied for is £150000 = affordability will need to cover £152k and 150k = Total aggregation will need to be £302k plus. The parents/grandparents mortgage balance does not need to be added to expenditure.

Is it available for purchase and re-mortgage?

Purchase transactions only.

Is it available for any family members?

Parents, step-parents and grandparents only.

How about children helping their parents or grandparents?

We are currently unable to offer ‘the reverse’. The situation must be that of the parent or grandparent being the ‘non-owning borrower’.

Where can I find a copy of the Certificate of Independent Legal Advice (CILA)?

This form, as well as all other required forms, is available under the ‘Useful Documents’ section of the Principality Intermediary website.

Who will need to get Independent legal advice?

Any non-owning borrower will need to get independent legal advice. A copy of the societies Certificate of Independent legal advice is available on request. Each non-owning party will need to provide a completed certificate prior to Society releasing funds.

When does the non-owning borrower need to get Independent legal advice?

The Certificate of Independent legal Advice must be completed and returned to Principality prior to completion. There is no requirement to submit this prior to Offer.

Would parents be able to reside at the property?

No, parents wont be able to reside at the property.

What payment methods are available for the Joint Borrow Sole Proprietor products?

We only offer the capital repayment method for Joint Borrower Sole Proprietor products.

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