Clydesdale launches joint borrower and sole proprietor/owner mortgage

by Aaron Strutt

Feb 11 2017

Clydesdale Bank has started offering joint borrower and sole proprietor/owner mortgages on a case-by-case basis.

This niche bit of criteria is available to borrowers purchasing up to 95% loan-to-value** and those seeking ‘like-for-like’ remortgages at a lower loan-to-value.

The bank states there cannot be more than two people on the application, and borrowers need to be family members.

Aaron Strutt, product director at Trinity Financial, says: “Before an application is submitted, it will need to be discussed with a business development manager at Clydesdale, and the broker submitting the case must be on the bank's lending panel. The broker must specifically declare if it is a joint borrower and sole owner mortgage.

“Even though the bank will not be insisting on clients seeking independent legal advice, we still think it is a good idea to get it. Particularly to clarify the situation on the stamp duty payment.”

Mortgage criteria

Clydesdale Bank expects the criteria to be popular with families, for example, a father and son or daughter who want to buy together. As part of the application, both incomes will be assessed for affordability purposes.

The bank has been more specific than some of the others providing these mortgages and they are going through as an exception, rather than part of its normal or everyday policy.

These mortgages are available on interest-only, although they are capped at 50% loan-to-value. All mortgages above this limit will need to be on the full capital basis.

**95% loan-to-value is limited to first-time buyers.

For help to secure a joint borrower and sole owner mortgage, call Trinity on 020 7016 0790.