Making a Difference: Joint Borrower, Sole Proprietor



I guess the first thing to say is, how quickly has a year gone by? Especially for Skipton’s policy – Joint Borrower, Sole Proprietor.

When Joint Borrower, Sole Proprietor (herein known as JBSP) was first launched, as a BDM, quite naturally, my first reaction is that it adds another string to my bow. Additional criteria helps in broker conversations, provides new opportunities and the ability to reach a wider audience.

However, JBSP has become more important than that, it’s provided us as a lender the ability to support more First Time Buyers (FTBs) on to the property ladder, which relates to our core purpose as a Building Society of helping people into homes. It also complements some of our existing criteria, which supports the ever-increasing challenge of home ownership. We support various schemes – such as Shared Ownership, Help to Buy and the Scottish LIFT Scheme. Whilst also helping borrowers to overcome the challenges of providing larger deposits, by accepting gifted deposits from family.

So JBSP fits right into our agenda and I am a firm believer in supporting the next generation. There are many challenges, for example average house prices are currently 8 times the median annual disposable income. Official figures showed the average price paid for a home in the UK jumped over 150% over the last 20 years, which is more than likely to have limited the access to home ownership for many people. We've all heard the term ‘generation rent’ and the challenges faced due to renting such as limited security/stability.

Here’s a reminder of our JBSP proposition:

  • We accept up to four applicants and will assess based on up to all four incomes.
  • There are no restrictions around the relationship between the main borrower(s) and the supporting borrower(s) (known as the non-proprietor).
  • Available up to 85% LTV.
  • The maximum term will be based on the oldest income-providing applicant.

JBSP enables borrowers to support their family members or friends on to the property ladder. Funnily enough, we have seen some unexpected results since our launch of this proposition. My thoughts were the original supporters for JBSP would be parents, supporting their children on to the ladder. However, we have found there is a growing market of children supporting their parents. This could be for capital raising purposes for home improvements or end of mortgage term, looking for an extension. We have seen some cases, where due to change in circumstances, parents have become unable to service the mortgage themselves and the support of their child has helped them find a solution out of this situation. Then there are those who have helped parents move from rented accommodation to getting their own mortgage.

I asked broker Gareth Lowman, Director Property Finance at SPF Private Clients, his views on JBSP.

“JBSP has provided our clients, young and old with another opportunity to support their dreams of homeownership. Having Skipton as another lender in this field strengthens the choices and proposition we, as a firm, can offer."

Michael Brown
Business Development Manager

December 2020

These views are Michael’s own.

All information correct at time of publish.

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