Vernon Building Society has enhanced its Joint Borrower Sole Proprietor (JBSP) mortgage proposition giving brokers greater flexibility to help buyers secure a mortgage with support from family members.
Under the new criteria, the mortgage term can now extend beyond the supporting borrowers’ intended retirement age. There is no maximum age for capital-and-repayment mortgages, while interest-only lending can also be considered up to age 85 in defined circumstances. This greater age and term flexibility also gives brokers more scope for reverse JBSP cases, which see adult children support their parents’ mortgage affordability.
The Vernon has also removed the requirement for the property-owning borrower to demonstrate they could afford at least 50% of the monthly mortgage payment. Affordability is assessed across all borrowers, with each applicant fully assessed against the Society’s lending criteria.
The enhanced proposition retains a range of features designed to help brokers find solutions for more complex cases, including:
- Up to four applicants and incomes: allowing more than one family member to help support the mortgage application.
- Split repayment terms: different parts of the mortgage can be repaid over different periods. This can help borrowers pay back the part of the loan supported by a family member’s income sooner, while spreading the rest of the borrowing over a longer period.
- No fixed minimum income: there is no set minimum income applicants must earn. Instead, the Vernon assesses whether the mortgage is affordable based on the borrowers’ combined circumstances.
- A broad range of accepted income: the Society considers 100% of regular bonus, overtime and allowances, as well as income from zero-hours contracts and limited-company directors.
- Available for purchases and remortgages.
As with all mortgages from the Vernon, all applications are considered individually and manually underwritten, rather than assessed through automated credit scoring.
Brendan Crowshaw, Head of Mortgage and Savings Distribution at Vernon Building Society, says:
“Family support can make a real difference to someone’s ability to buy a home, but the rules around how that support is structured can sometimes create unnecessary obstacles. We’ve enhanced our JBSP proposition to give brokers greater flexibility, with a more considered approach to mortgage terms and how the combined income of borrowers is assessed.
“Our new approach is about looking at the complete picture and considering each case on its individual merits, rather than applying additional restrictions that may not reflect the borrowers’ circumstances.”
For further information visit:
https://www.thevernon.co.uk/intermediaries/products/joint-borrower-sole-proprietor/
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