Do you have clients who are self-employed wanting to get on the property ladder?
As of July 2021, there are approximately 4.3 million self-employed people in the UK and this figure is steadily increasing.*
Post pandemic, many self-employed people have and are experiencing reduced income and have needed government support to stay afloat.
We are here to help!
Our Joint Borrower Sole Proprietor (JBSP) product is a great option for any self-employed applicants who have been impacted by Covid.
Joint Borrower Sole Proprietor: Case Study
Note: this case study is representative of a real life case, however all details have been changed to protect the identity of our member.Billy is a 25 year old self-employed PE teacher. During Covid, he turned to the government grant scheme as he could not teach as often during that time. He has recently returned to work and his income is increasing. Billy’s Dad, Marcus, has been self-employed for some time and his earnings were not affected by the pandemic and remained stable. Billy has saved £60,000 for a deposit and would now like to buy his first home worth £300,000. After receiving independent legal advice, Billy’s Dad was happy to help and support his son with the affordability by being added to the mortgage. The 40 year term is based on Billy’s age as we expect to release Marcus from the mortgage obligations within 5 years when Billy’s income fully recovers, which can be demonstrated through accounts or tax returns. Marcus incurs no stamp duty liability as he is not an owner of the property. By using the Buckinghamshire Building Society Joint Borrower Sole Proprietor option, the application was able to proceed quickly to completion with a minimum of fuss around proof of income for Billy. |
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Highlights of Buckinghamshire Building Societies JBSP product: |
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- Max LTV: 90%
- 2 years income evidence required for self-employed applicants
- Also available for employed applicants
- Can consider up to a 40 year term
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- Income must cover both households expenses
- Earned income can be considered up to age 75 based on job plausibility and clients intention to work to age 75
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