A case in point: Joint applications

Welcome to a new series on our blog, a case in point. We are regularly going to highlight a particular case we have done recently to show how a bit of creativity can go a long way. Here’s an example of some clever stuff we did with a joint application.

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David and Adam are father and son, and Adam was looking to buy his first home. He had worked hard to save a good size deposit, but he had limited income. This meant that, unfortunately, in the first instance we couldn’t quite make the maths add up to help him get that first foot on the ladder. But that was just the beginning.

David has good levels of income from his pension and was very happy to explore supporting Adam in any way he could. However, as he is 71 years old, that also proved a challenge. Most lenders will only allow a maximum 14-year term or less on joint borrowing, and this created an ever higher initial monthly cost.

And that’s when we got creative. We discussed the case with one of our Building Societies with whom we have developed an excellent relationship and proposed a split term. 35 years for the borrowing by Adam and 14 years for the borrowing supported by David. This reduced the monthly payments by over £350, meaning it become affordable. In addition to this, David had no desire to be party to the new property ownership, so we arranged the borrowing on a joint borrower, sole proprietor basis. Which means the borrowing was in joint names, but the deeds in Adam’s name solely. Forgive us for being colloquial, But result.