Executive Summary
Joint Borrower Sole Proprietor (JBSP) mortgages represent a sophisticated financial instrument enabling homeowners to support first-time buyer children without triggering punitive stamp duty liabilities.
The mechanism hinges on a crucial legal distinction: parents serve as co-borrowers while maintaining no beneficial interest in the property. This structure preserves the child's first-time buyer status, allowing access to SDLT relief while leveraging parental income.
Key Benefits of JBSP Mortgages
Stamp Duty Savings
Save thousands by avoiding the 3% additional dwelling surcharge.
- Up to £12k on £400k
First-Time Buyer Status
Preserve SDLT relief while benefiting from parental support.
- Keep FTB benefits
Enhanced Borrowing
Access higher loan amounts by combining family income.
- Higher capacity
Protected Ownership
Child remains sole proprietor with no parental interest.
- Sole title deed
SDLT Calculation for £400,000 Property
Comparing Standard Joint vs JBSP Mortgage
| Measure | Standard Joint | JBSP Mortgage |
|---|---|---|
| First £300,000 (0%) | £0 | £0 |
| £300,001 - £400,000 | £5,000 | £5,000 |
| Add. Surcharge (3%) | £12,000 | £0 |
| Total SDLT | £17,000 | £5,000 |
Total Savings: £12,000. JBSP avoids the 3% surcharge while maintaining FTB benefits.
Lenders Offering JBSP Mortgages
Major Banks
Barclays, NatWest, Halifax, Santander UK
Building Societies
Skipton, Principality, Nationwide, Leeds
Specialist Lenders
Vida Homeloans, Metro Bank, Fernwood
JBSP Mortgage Process
Consultation
Assess family financial situation.
Lender Selection
Choose from 25+ UK lenders.
Application
Submit joint application.
Legal Docs
Establish Deed of Trust.
Completion
Secure SDLT savings.
Important Considerations
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.