This type of mortgage allows older family members to help out younger relatives buying a home, while younger family members can also help older relatives to buy. For example, with up to four people on the mortgage application, family members are able to assist one another to own their own home, no matter what their age.
Two year variable discounted rates start at 2.75 per cent and are currently available for residential mortgages in England and Wales.
Ashley Pearson (pictured), business development manager at the mutual, said: “We launched this solution in November 2020 at 85 per cent LTVand have been pleased with the response. Increasing the LTV to 90 per cent for standard JBSP means we’ll be able to help more people realise their home ownership ambitions.”
For proprietors whose income is insufficient to cover the mortgage without the assistance of additional joint borrower(s) who live independently from the mortgaged property, affordability will be assessed taking into account income and commitments of all named parties.
The Loughborough’s criteria allows borrowers to potentially take a mortgage over 40 years, rather than have a restricted mortgage term at the outset.
In July this year, Loughborough also relaunched its buy for uni range as a joint borrower sole proprietor (JBSP) mortgage, while still allowing students to rent out rooms.
The product enabled students to get onto the property ladder with the help from a family member with up to two rooms allowed to be rented out to cover mortgage payments.
