The Client:
Our clients approached us looking to purchase a home together. While one applicant was a first-time buyer, the other already owned a property, meaning the purchase was subject to additional stamp duty—something they hadn’t factored into their budget.
With a 90% loan-to-value mortgage and a fully gifted deposit, this unexpected cost left them short of funds and at risk of losing their chosen property.
At a Glance:
- Couple purchasing together at different stages of the property ladder
- First-time buyer benefits unavailable due to existing property ownership
- 10% gifted deposit already committed
- Stamp duty not factored into budget, creating a funding shortfall
The Case:
Our clients were already living together in a property owned by one partner, which they planned to retain and rent out. Having found their desired home in a competitive local market, they were keen to move quickly to secure the purchase.
However, because one applicant already owned a property, the purchase attracted higher rate stamp duty. This had not been accounted for in their original budget, leaving them financially stretched at a critical stage.
To proceed, they needed a solution that would:
- Maximise affordability using both incomes
- Avoid delays in a fast-moving market
- Work within their existing deposit constraints
The Challenge:
The key challenge was bridging the financial gap caused by the overlooked stamp duty liability while still meeting lender criteria for a high LTV application.
Additionally:
- The lender needed to consider both incomes for affordability
- The structure had to accommodate one applicant already owning another property
- Timing was critical to avoid losing the property
Most standard mortgage routes would not have provided enough flexibility to make the numbers work without increasing the deposit.
The Solution:
Drawing on our knowledge of lender criteria, we identified a lender offering a family-backed mortgage solution similar to a Joint Borrower Sole Proprietor (JBSP) structure.
A JBSP (Joint Borrower Sole Proprietor) product is a type of mortgage that allows up to four people to be named on a mortgage loan, while only one (or two) of them are named on the property deeds as the legal owner.
This allowed:
- Both applicants’ incomes to be used for affordability
- Only one applicant to be named on the property title
- The other partner to live in the property without restriction
By structuring the application in this way, we were able to:
- Maximise borrowing capacity
- Reduce pressure on the deposit
- Offset the impact of the unexpected stamp duty cost
With affordability confirmed at 90% LTV and a strong employment profile, the application progressed quickly, and we secured a mortgage offer within just five days of submission.
Property Details:
Property value: £575,000
Loan amount: £517,500
LTV: 90%
Term: 25 Years, capital and interest repayment
Mortgage payment: £2,794.39 per calendar month
Lender arrangement fee: £995
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