Do Guarantor Mortgages Still Exist?

Let’s say you’ve found your dream flat. The one with the charming brickwork, the perfect coffee shop nearby, and just enough space for your collection of houseplants and existential dread.

There’s just one problem: the mortgage affordability calculator laughed when it saw your income.

Enter the modern guarantor mortgage, AKA Joint-Borrower Sole Proprietor (JBSP) mortgage — the real estate world’s way of saying, “It’s OK to get by with a little help from your (financially stable) friends or family.”

So, What is a JBSP or Guarantor Mortgage?

A JBSP mortgage allows two or more people to apply for a mortgage together, using everyone’s income to boost borrowing power — but only one person owns the property. That’s right: joint borrowers, sole proprietor. It's like going Dutch on the mortgage, but only one name gets put on the front door.

It’s most commonly used by:

• First-time buyers whose income needs a top-up

• Parents helping their grown-up kids onto the ladder without getting hit by second property stamp duty

• Couples where one person wants to be the sole legal owner (for tax or relationship reasons)

Why Would You Need A Mortgage Guarantor?

Because life is expensive, and being able to afford a home solo in the current market is about as likely as finding a unicorn in the Waitrose car park.

By adding someone else's income into the affordability mix (like a parent or partner), you can:

• Borrow more than you could alone

• Get on the ladder sooner

• Avoid the stamp duty surcharge that hits if your helper already owns a home

What’s the Catch?

The guarantor / supporter is financially responsible for the mortgage if you can't make repayments, but with no legal ownership or rights to the property. Essentially, they’re footing part of the bill… without getting a spare key.

Lender Criteria: Do I Qualify?

JBSP mortgages sound fab, but not every lender rolls out the red carpet for them. Here’s what they usually want to see:

• Clean(ish) Credit Histories

  The borrower and their helpful mortgage buddy need decent credit. If Dad has an Omaze addiction that puts him in overdraft at the end of every month, we may have issues.

  
  

• Affordability Rules Apply

  All incomes are considered, but lenders still need reassurance that everyone involved can cover the repayments. They’ll scrutinise:

  • Salaries

  • Existing debts

  • Commitments of the supporter like their own mortgage repayments

  
  

• Relationship Requirements

  Usually the joint borrower must be a close family member. Some lenders are open to friends or co-habiting partners, but your mate Dave from the pub might not make the cut.

  
  

• Age Limits

  Some lenders cap the oldest applicant’s age at 70 or 75 at the end of the term. So your 93 year old grandma might not make the cut, and your parents' age might mean a short mortgage term and higher repayments for you.

  
  

• Deposit & Loan-to-Value (LTV)

  Most lenders want to see a solid deposit — typically at least 10%, but more is better (as always).

What Happens Later?

At some point, you’ll want to fly solo. Here’s how that might look:

• Remortgage into your own name if your income has increased

• Use overpayments to reduce the debt faster

• Reassess if your helper needs their borrowing power back (maybe they want a yacht, who knows?)

It’s worth noting that the joint borrower remains liable for the mortgage until officially removed, so have a plan in place — ideally something more concrete than “When I win the Euromillions.”

Final Thoughts: JBSP – The Unsung Hero of Modern Mortgages

A JBSP mortgage is a brilliant solution when your ambition outweighs your bank balance. It’s like a financial piggyback ride from someone who loves you enough to take on debt, but not enough to insist on a room with a view.

Because nothing says “I love you” quite like “Don’t worry, I’ll co-sign your mortgage!”