Family Building Society has enhanced their lending criteria to allow up to two owner occupiers for all Joint Mortgage Sole Owner (JMSO) applications.

JMSO enables additional borrowers (such as parents) to join in a mortgage without being joint owners of the mortgaged property. This facility has become increasing important for first time buyers as it enables parents to help them without triggering the additional 3% stamp duty surcharge for second properties and benefit from the stamp duty exemption introduced last November. The facility is not limited to first time buyers – it also enables older family members to be assisted by their adult children, which is increasingly important as more people find they need to continue borrowing past retirement.

Combined with the Family Building Society’s recent change to the maximum term for older borrowers, a 60 year old parent can now help their child with a mortgage with a 35 year term, and likewise children can help support their 70 year old parents mortgage over a 25 year mortgage term.

Examples of who a JMSO arrangement might be suitable for:

• Young professional borrowers where their income is likely to increase, but are currently unable to afford the full
• Recently separated or divorced professionals who wish to remain in their current home but need temporary help with their
• Retired borrowers wanting to move closer to their family in a more expensive

Keith Barber, Director of Business Development said “Changes to Stamp Duty over recent years have hampered the ability of parents to help first time buyers. We’ve made this change in order to help more families take advantage of the flexibility that this arrangement provides. This change demonstrates our commitment to the first-time buyer market, which was recognised again last week by the award of “Best First Time Buyer Lender” at the Mortgage Awards 2018.

“In addition to the benefits for first time buyers, we are seeing a number of older working couples wanting to help their children whose financial circumstances have changed unexpectedly, as a result

of divorce, for example. There is also seen an increase in couples who want to support older parents remain in the family home or who wish to move closer in a more expensive area.

“We know life is complicated. This change reflects the flexibility that lenders must demonstrate if they are to successfully solve the complex needs of today’s society.”