14th January 2025
A JBSP case that landed with us, needing a unique look from us to make it fit.
At Vernon Building Society, we pride ourselves on taking a thoughtful, common-sense approach to lending. Joint Borrower Sole Proprietor (JBSP) mortgages are an excellent solution for borrowers with unique circumstances, particularly when flexibility and tailored assessments are required. One recent case demonstrates how we embrace complexity to provide positive outcomes for our clients.
The applicants were a 33-year-old tenant looking to buy the flat they had been renting and their 64-year-old parent who owned their home outright. The younger borrower earned £22,000 annually and had saved a £42,000 deposit, while the older borrower brought a steady income of £26,000 and planned for retirement at age 70. The property, valued at £164,000, had a long lease and reasonable service charges, making it an attractive purchase.
The case presented challenges that might have deterred other lenders. The primary applicant had limited credit history, while the parent, nearing retirement, required a split-term structure. We approved a 35-year term for the main applicant, with the parent contributing for the first 10 years before transitioning to retirement income. We evaluated the parent's future income, including their SIPP drawdown and state pension projections, ensuring affordability beyond retirement.
The applicant’s progression plan was also carefully reviewed. With a clear trajectory for salary growth, we assessed affordability based on an expected income of £30,000. This allowed us to conclude that the younger borrower could sustain the mortgage independently after their parent’s involvement concluded.
Our manual underwriting approach enabled us to assess the case holistically rather than relying on rigid credit scoring. By considering the full financial picture, we provided a solution that supported both applicants' goals while adhering to responsible lending standards.
At Vernon Building Society, we specialise in helping borrowers with unconventional circumstances. Whether it's limited credit history, retirement considerations, or unique property purchases, our human underwriters are committed to finding solutions where others might not.
If your clients have a story like this, talk to us today. Let us take a personal view of your case—no algorithms, no rigid thresholds, just common-sense lending designed to meet real-life needs.
Brendan joined in 2020 after managing his own broker firm for seven years. He oversees our Mortgage and Savings distribution strategy and is responsible for our Intermediary Team and their approach to your cases.