Does John Charcol offer a joint mortgage application with a the option for a sole proprietor?
Posted on 16 February 2016 by Bob
In a Moneywise article from 2014 it said that John Charcol offered a product called a joint borrower, sole proprietor mortgage. Is this product still available?
Hi, thanks you for your question, via our ‘Ask the Expert’ section of our website. Typically, most lenders require that if both names are on the mortgage, then both names must be on the deeds. However, there are a couple of lenders that do offer what's known as a joint borrower/sole proprietor product, which is effectively where two applicants are named on the mortgage, but the title deeds would be in just the one sole name.
To explain why you might want to do this. A parent could be assessed as part of a mortgage application with their son or daughter but the house could just be in their child's name. With this the parent's incomes would be assessed as part of the affordability calculation, meaning the child could potentially borrow more, but both the parent and their child would be responsible for the mortgage repayment.
This facility is currently still available through a number of lenders and there are other lenders whom may consider this type of transaction on an individual basis but this will be subject to being receipt of your financial circumstances.
For more information I'd suggest that you call us at John Charcol and ask to speak with Paul Newman who is one of our senior consultants. He will be able to best assist you in the complexities of this type of mortgage.
Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.
We recommend you seek professional advice with regard to any of these topics where appropriate.
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY DEBT SECURED ON IT.
John Charcol is a trading name of John Charcol Limited and its Appointed Representatives. John Charcol Limited is authorised and regulated by the Financial Conduct Authority. The Financial Services Register number is 665649. Registered in England No. 9157892. Registered office address for John Charcol Limited is 5th Floor, Cutlers Exchange, 123 Houndsditch, London, EC3A 7BU. The FCA does not regulate some investment mortgage contracts. Calls may be recorded for training and monitoring.