Family Assistance

Sometimes, people find that they are a bit short on income to pass the strict affordability criteria that lenders have. They are happy that the monthly mortgage payments are affordable, but just need a hand getting the income to a level that the lender is happy with. There are various schemes available from different lenders whereby a family member (typically mum or dad) would be added to the mortgage and their income is used to boost the overall income calculations. This is often called a “Joint Borrower Sole Proprietor” (or JBSP) mortgage. The family member in no way owns any of the new house (meaning no additional stamp duty liability) and can come off the mortgage when you are earning enough income to satisfy the lender’s criteria. Some lenders will allow non family members to help.