Loughborough Building Society Launches Joint Borrower Sole Proprietor Mortgages up to 100% LTV
Loughborough Building Society has added a new option to their Family Assist range.
It’s a hybrid of the Joint Borrower Sole Proprietor (JBSP) concept and the family backed Deposit Guarantee. So for those borrowers who are short on income and short on deposit and have family members who are willing and able to help, this new solution could be the answer to owning their home. This includes up to 100% lending when guarantees are in place.
As with all JBSP mortgages, all parties will be responsible for the mortgage payments, and there is no requirement for the proprietor to be able to take on the mortgage alone until all family members are ready and able to make the change.
The same family member who takes the role of joint borrower can also offer a deposit guarantee of up to 20% of the property value by way of either depositing a sum of cash into a specially designed account or by a collateral (second) charge on their home, or a mix of both. Once the terms of the guarantee are met, the cash sum will be returned to the assisting family member or their collateral charge removed.
These mortgage products are available for the purchase or re-mortgage of properties in England and Wales.
Ashley Pearson, BDM at The Loughborough said, “The blend of the two Family Assist product concepts makes total sense. We know from experience that families are often willing and able to help one another to realise home ownership dreams and this is a great way for them to be able to do just that”.