A JMSP mortgage allows two (or sometimes more) people to take out a mortgage together—typically a buyer and a family member—but with only one person named on the property deeds. That sole person becomes the legal owner, while the other party (usually a parent or close relative) is simply helping with the mortgage.
This model can be particularly useful when the buyer’s income alone isn’t enough to pass the lender’s affordability checks. The additional income of the supporting party can be factored into the assessment, boosting the overall borrowing potential without adding another legal owner.
How It Helps First-Time Buyers
1. Increases Borrowing Power
The most immediate benefit is increased affordability. Let’s say a buyer is limited to borrowing £180,000 based on their salary, but they’re looking at homes priced closer to £250,000. With a JMSP mortgage, a parent’s income can be added to the affordability calculation, potentially bridging that gap.
2. Keeps Stamp Duty Costs Low
Because only the buyer is listed on the deeds, if they are a genuine first-time buyer, they remain eligible for first-time buyer Stamp Duty relief (up to £425,000 in England). This can save thousands compared to a traditional joint mortgage where both parties are on the title.
Speak to your conveyancer for advice on Stamp Duty costs.
3. Avoids Complications Around Second Home Ownership
If a parent already owns their own home, adding them to the title of a second property would trigger additional Stamp Duty charges as it would be classed as a second home. With JMSP, they can support their child financially without incurring these costs.
4. Maintains Ownership Simplicity
Having only one legal owner simplifies future ownership and reduces the risk of conflicts later down the line. This is especially helpful if parents are offering temporary support until their child’s income grows.
5. Keeps Inheritance Planning Simple
From an estate planning perspective, a JMSP setup ensures that the property remains in the child’s name, reducing the complexity of ownership transfers in the future.
Who Is It most Suited For?
JMSP mortgages are ideal for:
- First-time buyers with limited income but strong family support
- Parents wanting to help their children without gifting large sums
- Buyers who want to avoid shared ownership or complex joint ownership arrangements
- Families who are happy to assist without expecting a legal share in the property
What Should Clients Be Aware Of?
While JMSP can be a powerful tool, it’s not without consideration:
- The supporting party will be jointly responsible for the mortgage repayments. If the buyer can’t pay, the co-applicant must.
- Not all lenders offer JMSP mortgages, and criteria vary, so using a mortgage adviser is key.
- Legal advice is often recommended to ensure all parties understand their rights and responsibilities.
In Summary
Joint Mortgage Sole Proprietor propositions offer a flexible and tax-efficient way for first-time buyers to access homeownership with the help of family. For many, it’s the missing link that allows them to secure their first home without overcomplicating the ownership structure. It’s a great example of how modern lending solutions can adapt to the real-world challenges families face—and offer meaningful, practical support to the next generation of homeowners.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
NxtGen Mortgages is a trading name of Just Mortgages Direct Limited which is an appointed representative of The Openwork Partnership, a trading style of Openwork Limited which is authorised and regulated by the Financial Conduct Authority.
Approved by The Openwork Partnership on 12/06/2025
