The JMSP increases the borrowing power of the applicant by allowing them to apply for a mortgage using the supporting income of a family member, with affordability calculated using income from both the occupying and non-occupying borrower.
Although the mortgage will be in joint names, the occupying borrower will own the property and will be the sole name on the title deeds.
The two-year fixed rate JMSP is available at 80 per cent loan to value (LTV) with a rate of 2.95 per cent or 5.2 per cent with £500 cashback.
There is also an allowance of 10 per cent overpayments each year. The deal has an early repayment charge of two per cent until 31 December 2021 and a one per cent early repayment charge until 31 December 2022. The product is available to those aged 18 to 80.
John Truswell (pictured), head of intermediary mortgages at Newcastle Building Society, said: “We know that for many would-be home buyers, circumstances will have changed over the last few months, meaning a re-think and possibly a different approach when it comes to their borrowing.
“We’re delighted to reintroduce our JMSP mortgage to give more options for people wanting to own their own home.”
He added: “We’d usually expect these mortgages to be used by parents to support first-time buyer adult children, but the product can also be used to support older generations who would benefit from the support of a family member to continue to live independently.”