Why advisers should think differently about Joint Borrower Sole Proprietor

Buying a first home has never simply been about saving a deposit. Plenty of aspiring homeowners have spent years putting money aside, built a strong credit history and secured stable employment, yet still find themselves unable to borrow enough to buy the property they need.

Advisers will see this every day. Clients arrive believing they have done absolutely everything right, only to discover affordability has become the barrier. They can comfortably manage the monthly repayments, but the amount they are able to borrow falls short of what they actually need.

That is why I believe Joint Borrower Sole Proprietor (JBSP) has become one of the mortgage market’s most valuable affordability solutions, even though many people still see it purely as a first-time buyer product.

Of course, first-time buyers remain the group most likely to benefit from JBSP, but they are no longer the only borrowers facing these challenges. House prices have risen much faster than earnings over the long term, while meeting affordability requirements has become much harder for many households. The result is borrowers from a wide range of professions and income levels can find themselves in exactly the same position. 

For me, one of the biggest misconceptions is that affordability issues are only confronted by those on lower incomes. Instead, advisers are seeing financially responsible applicants with stable careers and realistic expectations who still struggle to borrow enough to buy the home that suits their needs. 

Why JBSP has become more relevant 

This is where JBSP really comes into its own. In simple terms, it allows a family member or another suitable sponsor to join the mortgage application so their income can be considered during the affordability assessment. The applicant remains the sole legal owner of the property, while the sponsor shares responsibility for the mortgage.

For many first-time buyers, that can make a huge difference. Rather than waiting several more years while hoping their income catches up with rising property prices, they may be able to move forward sooner with support from someone willing to strengthen their application.

That also reflects how family support has changed. A generation ago, helping children buy a home often meant contributing towards a deposit. Today, many parents and grandparents recognise that borrowing power can be just as important, making JBSP another way of helping younger generations buy when the time is right rather than waiting for affordability to improve. 

Looking beyond first-time buyers 

Although JBSP is most commonly associated with first-time buyers, focusing solely on that market risks overlooking borrowers facing exactly the same affordability challenge for very different reasons.

Borrowers returning to the property market following divorce or separation often face a very different affordability assessment from when they previously bought as part of a couple. The same can apply to people rebuilding their finances after a significant life event, returning to homeownership after time away from the market or remortgaging following a change in personal circumstances.

Home movers can also find themselves needing additional affordability support, particularly when relocating to an area where property values are higher or buying a larger home for a growing family. Likewise, single applicants with strong careers and stable incomes may simply need support from a close family member to achieve the borrowing they require. 

The circumstances in each of these examples are different, but the challenge is remarkably similar. Affordability, rather than financial discipline or the ability to sustain mortgage repayments, is often the factor preventing borrowers from moving forward. 

Spotting opportunities earlier 

Perhaps the biggest opportunity for advisers is to consider JBSP before affordability becomes a dead end rather than after it. A wider factfind around family support, future plans and who may be willing to help, can uncover options clients may not have considered, particularly if they have already assumed buying is out of reach. 

Sometimes the most valuable part of the advice process is not recommending a different lender, but recognising a different borrowing structure may be more appropriate. Customers do not always know what options are available to them, and exploring alternatives early can completely change what is achievable. 

Of course, JBSP will not be appropriate in every case. Sponsors take on responsibility for the mortgage despite not owning the property, so everyone involved needs a clear understanding of what that commitment means and whether it is the right fit for their circumstances. 

That is where advisers continue to add real value. Explaining the responsibilities alongside the opportunities helps customers make informed decisions that are right for them, rather than simply focusing on what they can borrow today. 

A solution that has grown with the market 

At Bank of Ireland for Intermediaries, we see JBSP supporting first-time buyers, home movers, remortgage customers and borrowers returning to the market after a change in circumstances. While every application is assessed on its own merits, having solutions that reflect the different ways people buy homes today gives advisers greater flexibility to support a broader range of clients. 

JBSP has become more valuable because the market has changed around it. Affordability is no longer a challenge faced only by first-time buyers, which means advisers who look beyond that label may find it helps far more clients than they first expected. 

JBSP will not be the right solution for every borrower, nor should it be. However, as affordability continues to shape the housing market, advisers who think beyond traditional borrowing structures, and recognise where JBSP genuinely fits, are likely to help more customers achieve homeownership than those who rely solely on conventional solutions.