First-time buyers often find getting onto the housing ladder to be a challenge, but never more so than today. Rising property values; student debt; stricter affordability requirements; generation rent: all combine to make things incredibly difficult for many of the current generation of first-time buyers.
For those who are not yet earning enough to meet the assessment of affordability requirements that lenders must work to, there is a solution called ‘Joint Borrower – Sole Owner’. This works by allowing the first-time buyer to add a parent to the mortgage so that their income can also be considered, whilst the legal title to the property is held solely in the name of the first-time buyer.
There are several potential benefits to this: the first-time buyer may be eligible for the current waiver of stamp duty that the government has made available to first-time buyers, and it will mean that the parent isn’t buying a second home, which could trigger a higher rate of stamp duty under current rules. It also means that when the first-time buyer can afford the mortgage on their own there will not need to be a change to the title of the property (an assessment process would be required however, and fees may be incurred).
We do not require any savings to be saved with us (as a deposit will be provided in the usual way) and we apply our normal lending criteria. We will also provide advice on the product selection.
Building societies were originally created to help people own their own home, and Furness is proud to be continuing in that long-standing tradition by providing this type of mortgage.
Jenny is a 23 year old HR Manager in the early stages of her career.
She is looking to buy an ideal propertry to help her get on the property ladder but is struggling to find a lender that will help.
Our case study explains how we were able to help Jenny with the support of her mum.find out more