Just Mortgages and April Mortgages launch 100% LTV JBSP mortgage
Just Mortgages has launched a semi-exclusive joint borrower sole proprietor (JBSP) mortgage with April Mortgages, aimed at helping more first-time buyers access homeownership.
The product is available through Just Mortgages and a limited number of intermediary firms as part of an initial pilot. It combines up to 100% loan-to-value (LTV) lending with enhanced affordability options.
Under the JBSP+ proposition, up to four applicants can be included on a mortgage, with as many as three supporters contributing their income towards affordability. Ownership of the property remains with the buyer.
Supporters can live in a separate household, allowing family members, partners or friends to help applicants who might otherwise struggle to meet affordability requirements.
As affordability pressures mount for first-time buyers, parental support has seen a shift toward greater mortgage involvement, rather than gifting alone. It has been said that 57% of first-time buyers under 35 years old needed financial support from family.
The mortgage is available on 10- and 15-year fixed rate terms and offers up to 100% LTV.
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Borrowers also have access to April Mortgages’ product features, including no early repayment charges when moving home or repaying from their own funds, automatic rate reductions as LTV improves and unlimited overpayments.
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.”
The launch forms part of Just Mortgages’ ongoing commitment to expanding the range of specialist lending solutions available to advisers, helping them support a broader range of clients in an increasingly complex housing market.
