The lender said the deals were designed to enable scenarios where parents were looking to help their son or daughter to buy a home with the only charge being on the property being purchased.
In the government’s changes to increase the Stamp Duty rate for subsequent property purchases, it suggested that parents already in ownership of one property would be subject to the higher taxation rate if they help one or more of their children with a purchase, despite not living in the property.
Customers borrowing through the Hinckley and Rugby will have their income boosted by parents or a guardian as part of the application, but they will not be added to the title deeds. The Society will not require any savings to be lodged as security.
Hinckley and Rugby’s products are available at up to 95% loan-to-value (LTV) for residential purchases and up to 75% for buy to lets.
Head of intermediary sales Carolyn Thornley-Yates (pictured), said: “The joint borrower sole proprietor mortgage can be very well suited for parents who already own their home to help a son or daughter onto the property ladder.
“Offering this as an option to our competitively priced range of mortgages is very much in tune with our personalised approach to applications. We always look at such applications in the round and make an individual decision based on all the circumstances.”
