JBSP Mortgages - Joint Borrower Sole Proprietor

JBSP stands for Joint Borrower Sole Proprietor. It's a type of mortgage that allows up to 4 people to be named on the mortgage, but only one (or two) people are named on the property deed. This arrangement is particularly popular with parents helping their children get onto the property ladder.

How JBSP Mortgages Work

With a standard joint mortgage, all borrowers appear on both the mortgage and the property deed. With a JBSP mortgage, the arrangement is different:

• On the mortgage - All parties (e.g., child and parents) are named as borrowers
• On the deed - Only the child is named as the property owner
• Income assessment - All borrowers' incomes are considered for affordability
• Stamp duty - Parents avoid the 3% second home surcharge

Key Benefits of JBSP

• Increased borrowing power - Combined incomes mean a larger mortgage
• No stamp duty surcharge - Supporting family member avoids additional tax
• Property ownership clarity - Child owns the property outright
• First-time buyer status protected - Child keeps FTB benefits

Who Is This Best For?

JBSP mortgages are ideal for first-time buyers who can afford monthly payments but don't earn enough to pass affordability tests on their own. Parents who already own property can help without triggering the additional stamp duty charge.

Considerations

• All borrowers are jointly liable for the full mortgage
• The supporting borrower's credit will affect their own future borrowing
• Not all lenders offer JBSP mortgages
• Independent legal advice is recommended for all parties