Just Mortgages has expanded its first-time buyer range with a semi-exclusive joint borrower sole proprietor mortgage from April Mortgages.
The JBSP+ product, which is being offered through Just Mortgages and a small number of selected intermediary firms during an initial pilot, combines lending of up to 100% loan-to-value with additional affordability support.
It allows up to four applicants, including as many as three supporters whose income can contribute to the affordability assessment while the buyer retains sole ownership of the property.
Supporters may live in a separate household, allowing relatives, partners or friends to help a buyer secure a mortgage without being added to the property deeds.
The product is available at up to 100% loan-to-value on 10-year and 15-year fixed-rate mortgages. It has no early repayment charges when borrowers move home or repay the loan using their own funds, while rates reduce automatically as the loan-to-value falls. Unlimited overpayments are also permitted.
John Doughty, chapter managing director at Just Mortgages, said: “Affordability remains one of the biggest challenges facing prospective homeowners, particularly first-time buyers. While there is no single solution, products like this can make a real difference, giving buyers flexibility in how they demonstrate affordability and secure a mortgage.
“Working with April Mortgages to bring this product to market strengthens the support our advisers can offer and provides another route into homeownership for buyers who may otherwise have struggled to take that first step.”
Mark Eaton, chief operating officer at April Mortgages, said: “JBSP has become a crucial solution for buyers who have the income for a mortgage but need support to meet affordability requirements.
“By extending the proposition to allow up to four applicants and three supporters, we are creating more opportunities for buyers to access homeownership without changing who owns the property.
“We’re delighted to be working with Just Mortgages to launch this proposition and provide its advisers with another option to support clients in a challenging market.”
Michael Brown, head of business development at April Mortgages, added: “This product combines flexibility with simplicity. Buyers can benefit from additional affordability support while retaining sole ownership of the property, and supporters are not added to the deeds.
“Together with the wider flexibility available across April Mortgages’ range, it gives advisers another valuable solution for clients whose circumstances fall outside more traditional lending criteria.”
