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Joint Borrower Sole Proprietor

Did you know Bath Building Society offers mortgages up to 100% of the purchase price with a joint buyer sole proprietor feature?

This is sometimes referred to as a family mortgage, or guarantor mortgage, however our Residential and Buy for Uni mortgages with the Joint Borrower Sole Proprietor feature are not guarantor mortgages.

With a Bath Building Society JBSP mortgage, the purchaser would be the sole proprietor, meaning only their name would be on the deeds. However, other individuals can be included as Joint Borrowers on the mortgage, and their income and commitments will be assessed as part of the mortgage affordability assessment.

Our Buy for Uni mortgages work on a Joint Borrower Sole Proprietor basis, and allow you to rent out spare rooms in your property to help towards your mortgage affordability calculations. For a Buy For Uni mortgage, the Joint Borrower(s) must be a parent or guardian. With our Buy For University mortgage the applicant can benefit from tax breaks in respect of the rental income.

Talk to one of our mortgage team today to find out more.

Frequently asked questions

Here are some frequently asked questions about the Joint Borrower Sole Proprietor feature

  • What is a JBSP or Joint Borrower Sole Proprietor mortgage feature?

    At Bath Building Society JBSP is a feature of our Buy For Uni and Standard Residential mortgages.

    For example, the Buy For Uni JBSP mortgage feature enables a student to buy a house and then rent out rooms within the house to help towards the affordability calculations for their mortgage payments. The student who owns the house becomes the landlord, buying their own house instead of paying rent to another landlord for their student accommodation whilst completing their studies.

  • How many people can be on a mortgage with the Joint Borrower Sole Proprietor feature?

    Up to three people can be on a Bath Building Society Joint Borrower Sole Proprietor mortgage. That’s one proprietor and up to two joint borrowers.

  • Do you pay stamp duty on mortgages offering the Joint Borrower Sole Proprietor feature?

    If you are a first time buyer and the property value is under £425,000, there is no stamp duty for you to pay. Parent/s also would not pay stamp duty as they would not own any of the property as the purchaser would be the sole proprietor.

  • How are Joint Borrower Sole Proprietor mortgages different from joint mortgages?

    With joint mortgages all borrowers are legal owners of the property. With JBSP mortgages, the sole proprietor is the only legal owner of the property and the parent/s would be joint borrowers for affordability purposes only.

  • What are the benefits of a mortgage with the Joint Borrower Sole Proprietor feature?

    You can achieve enhanced mortgage affordability and take a larger mortgage than might otherwise be possible on your own.

    Your joint borrowers will not be liable for stamp duty on the property you purchase as they will have no legal ownership nor will they be named on the deeds.

    Our standard residential mortgage products as well as our Buy for University mortgages both offer the joint borrower sole proprietor feature.

  • What are the risks of a Joint Borrower Sole Proprietor feature on a mortgage?

    If there is a breakdown in the relationship between borrowers, it could be difficult to remove joint borrower names from the mortgage. The joint borrowers have no legal rights to the property nor any of the increase in its value over time. If the sole proprietor stops making payments, the joint borrowers will be liable for the full amount of the mortgage and non-payment could impact their credit score. Missed or late payments will show up on all parties’ credit reports.

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This section is for use by professional Intermediaries only. If you are a customer please visit our Mortgage section.