Bucks BS offer flexible lending solution: Reverse JBSP mortgage

22 October 2020

Buckinghamshire Building Society endeavour to support those tricky situations, where children may need to support their parents and/or grandparents to remain in their home.

Parents Supported By Juniors (Reverse Joint Borrower Sole Proprietor), can provide housing security for older borrowers and as there is no maximum age limits and the term can be based on the younger applicant retirement age.

This lending solution from the Society provides a positive outcome for the borrower, by arranging a mortgage in joint names between the parents/grandparents and children. The property remains in the name of the parents/grandparents (proprietor), and the children are joint borrowers but not on the title deeds, therefore there is no stamp duty payable by the children for a second home.

These types of cases are also what make Buckinghamshire different from high street lenders. By using a bespoke human underwriting approach, assessing, discussing and evaluating each case on its merits, the Society can help borrowers who don’t quite fit the mould.

A recent Reverse JBSP case highlights this unique lending approach. (All names have been changed)

Lending Scenario: Mrs Curtin, aged 86 was recently widowed, her husband had left his share of the property to their grandson, which meant she was struggling to meet the repayments on her £53,000 mortgage.

Buckinghamshire Building Society Solution: We were able to arrange an interest only mortgage in joint names over 17 years to run to the grandson’s retirement age of 66. The grandson was able to demonstrate that he could afford his own residential mortgage, as well as supporting the new mortgage with his grandmother.

A positive outcome for the borrower: This arrangement has allowed Mrs Curtin to remain in the family home that she has lived in for the past 34 years.

Commenting on the launch, Tim Vigeon, Head of Lending said – “We are pleased to be able to offer a flexible lending solution, in order to help those coming to the end of their interest only mortgages, remain in their properties. This is another example of how Buckinghamshire Building Society’s human and bespoke approach to underwriting supports those in challenging situations.”

For more information please contact Tim Vigeon, Head of Lending on 01494 877250.