Family Building Society has enhanced its lending criteria to allow up to two owner occupiers for all Joint Mortgage Sole Owner applications
Family Building Society (FBS) has enhanced its lending criteria to allow up to two owner occupiers for all Joint Mortgage Sole Owner applications. JMSO enables additional borrowers, such as parents, to join in a mortgage without being joint owners of the mortgaged property. It will help first-time buyers, recently separated or divorced professionals who wish to remain in their current home but need temporary help with their mortgage, or retired borrowers wanting to move closer to their family in a more expensive area. 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.
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.
The director of business development, Keith Barber said that changes to Stamp Duty over recent years have hampered the ability of parents to help first-time buyers. Family Building Society has made this change in order to help more families take advantage of the flexibility that this arrangement provides.
In addition to the benefits for first-time buyers, there are 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.
Keith said that life is complicated and this change reflects the flexibility that lenders must demonstrate if they are to successfully solve the complex needs of today’s society.