Hinckley & Rugby Building Society has recently unveiled a new mortgage product known as Flex Together, specifically designed to aid first-time and next-time buyers contending with affordability challenges. This groundbreaking income booster mortgage, also referred to as joint borrower sole proprietor (JBSP), permits family members and friends to participate in the mortgage application, thereby augmenting the borrowing capacity. It is crucial to highlight that while all parties bear responsibility for the mortgage, only the principal purchaser holds legal ownership.
A prominent feature of the Flex Together mortgage is its allowance for up to four borrowers to be included in a joint application, extending eligibility to non-family members as well. The mortgage’s affordability is determined through an income multiple of x4.49 for each borrower, with a maximum loan-to-value (LTV) ratio capped at 95%.
Laura Sneddon, Hinckley & Rugby’s head of mortgage sales, has identified the distinctive characteristic of Flex Together in its provision of flexible term options. This enables different applicants to share the mortgage over varying timescales, particularly advantageous in scenarios involving a significant age difference between borrowers. In contrast to other lenders imposing restrictions based on the eldest applicant’s age, Hinckley & Rugby considers the main applicant’s maximum affordable term and customizes the older applicant’s contribution over a shorter term accordingly.
The introduction of this novel income booster mortgage arrives at a time when there is a mounting demand for financial support in mortgage applications. Legal and General’s projection that family support for mortgage applications would surge to 47% by 2023 reflects this trend. This trend is further substantiated by the upsurge in searches for ‘joint borrower sole proprietor’ as documented by the sourcing system Knowledge Bank.
The launch of the Flex Together mortgage by Hinckley & Rugby represents a promising development for individuals and families struggling to meet the affordability criteria for a mortgage. By affording the option to incorporate multiple borrowers in the application and tailoring the mortgage term to individual circumstances, this product offers a pragmatic solution to the challenges encountered by numerous aspiring homeowners.
Amid the ongoing evolution of mortgage lending, it is heartening to witness the introduction of innovative products like Flex Together to address the evolving needs of borrowers. The flexibility and inclusivity offered by this income booster mortgage pave the way for enhanced accessibility to homeownership, signifying a positive stride in the mortgage market.