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Family Building Society enhances intergeneration mortgages

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

Joint Mortgage Sole Owner proprietorship enable additional borrowers to be party to a mortgage without being joint owners of the mortgaged property. This facility has become increasingly important for first-time buyers, enabling parents to assist without triggering the additional 3% stamp duty surcharge for second properties. First-time buyers are also able to benefit from the stamp duty exemption introduced last November.

The facility is not limited to first-time buyers, also enabling 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 over a 35-year term, and likewise children can help support their 70-year-old parents over a 25-year 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 mortgage.

Recently separated or divorced professionals who wish to remain in their current home but need temporary help with their mortgage.

Retired borrowers wanting to move closer to their family in a more expensive area.

If you would like to find out more please contact us by calling 01823 273880 or email info@cooperassociatesltd.com

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