Joint Borrower Sole Proprietor with High Net Worth Family Support.
The Borrowers.
- Son owned a property worth £800,000 with an existing mortgage of £400,000
- Household income had reduced temporarily while he retrained to progress his career
- Parents wanted to help support affordability without being added to the property’s title deeds
- Parents owned an unencumbered home worth £1.3m
- Additional assets included: £2.2m managed investment portfolio, £1.3m SIPP (not yet drawn), State pension income
The Challenge.
- The son’s income had reduced in the short term while studying and retraining for career progression
- Additional affordability support was needed, but only on a temporary basis
- While there were several potential options available, including using capital to reduce the mortgage balance, the family preferred to retain their assets and investments
- Parents had significant wealth, but relatively modest assessable income under traditional lending criteria
- The goal was to provide short-term support until the son’s future earning potential could be realised
The Solution.
A Joint Borrower Sole Proprietor (JBSP) structure enabled the parents to support affordability without being added to the property’s ownership. To strengthen affordability, we considered:
- The parents’ investment portfolio
- The undrawn SIPP
- Existing pension income
Outcome.
✅ JBSP structure used to provide temporary affordability support
✅ Parents supported the mortgage without being added to the property title
✅ Investments and pension assets utilised without needing to liquidate or gift capital
✅ Interest-only payments helped reduce monthly outgoings during the transition period
✅ Family retained flexibility while protecting long-term wealth plans
✅ Clear strategy for the son to take over the mortgage independently once his income increased