JMSP can help first time buyers get on to the property ladder or borrowers wanting to purchase a home later in life. They use the income of a family member to increase borrowing capacity.
Newcastle’s range includes a 90 per cent LTV at 3.49 per cent – with an APRC 3.8 per cent – and a 95 per cent at 3.59 per cent, with an APRC of 3.9 per cent.
All fixed-rate products in the JMSP portfolio come with a free standard valuation on properties of up to £500,000 and allow 10 per cent overpayments per annum in addition to the £499 overpayments already permitted.
Adapting to borrowers’ circumstances
Mortgage affordability is 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.
Franco Di Pietro, head of intermediary mortgages at Newcastle Building Society, (pictured) said: “All borrowers’ circumstances are different, and it’s important to Newcastle Building Society that our approach to affordability adapts accordingly. Our competitive range of JMSP products are already being employed by brokers to meet their clients’ homeownership goals and now, as we introduce these five-year fixed rate products up to 95 per cent LTV, borrowers who require family support have the opportunity to secure the home they have their heart set on.”
Scott Taylor-Barr, financial adviser at Carl Summers Financial Services said JBSP mortgages have been one of the really useful innovations in the mortgage market over the past few years.
“There are more and more lenders able to look at lending on this basis, which is great for borrowers. Newcastle’s JBSP deals for those with just a five per cent deposit is good news and will help more people become home owners. It is very important to get good quality advice with these mortgages, especially the person helping the buyer, as they will have all of the responsibility of having a mortgage, but have no claim on the property they are helping to buy.”
