£376K Joint Borrower Sole Proprietor Mortgage Arranged for a 19-Year-Old Medical Student in Greater London Client Profile

Client Profile

• Client type: First-time buyer
• Age: 19
• Study status: Medical student (long-term university course)
• Property location: Greater London
• University location: London, approximately 20 minutes from the property
• Supporting borrowers: Parents
• Parents’ employment: Both IT contractors
• Parents’ income:
  • Contractor 1 earning approximately £600 per day
  • Contractor 2 earning approximately £500 per day
• Deposit source: Family savings
• Credit profile: Good
• Property type: Two-bedroom residential property
• Mortgage required: £376,000
• Loan-to-value (LTV): Approximately 84%

The Challenge

This case involved a young applicant at the very beginning of their professional journey. Key challenges included:

• The applicant was 19 years old, with limited income while studying
• A medical degree, which is a long-term course, required careful lender selection
• Parents wanted to support the purchase without owning the property
• The family wanted to avoid ongoing student accommodation costs in London
• Contractor income needed to be assessed correctly under lender criteria
• The structure needed flexibility so parents could exit the mortgage in the future, subject to affordability

Our Solution

After reviewing the family’s circumstances, we recommended a Joint Borrower Sole Proprietor (JBSP) mortgage. This allowed parental income to support affordability while keeping the property registered solely in the student’s name.

Our approach included:

• Assessing contractor income using accepted day-rate calculations
• Identifying lenders comfortable with JBSP mortgages for younger applicants
• Structuring the mortgage around the long-term nature of medical studies
• Ensuring the property ownership remained solely with the child
• Selecting a lender that allowed future flexibility, subject to lender criteria
• Managing the full application, underwriting, and lender communication

The Result

• Mortgage arranged: £376,000
• Loan-to-value: Approximately 84%
• Ownership: Sole ownership in the child’s name
• Location: Greater London, close to a London university
• Stamp duty outcome:
  • Assessed based on first-time buyer status
  • Approximate stamp duty saving: £27,380, compared to alternative ownership structures
• Accommodation savings:
  • Student accommodation avoided, saving approximately £700 per month
  • Over four years, this equates to around £33,600
• Additional income:
  • Second bedroom rented to another student
  • Generated approximately £600 per month to support ongoing costs

Why This Case Matters

This case demonstrates how a Joint Borrower Sole Proprietor mortgage can be used effectively in Greater London, particularly where families are supporting children through long university courses such as medicine.

When structured correctly, it can:

• Improve affordability
• Reduce reliance on student accommodation
• Create long-term housing stability
• Provide flexibility for future remortgaging

Suitability always depends on individual circumstances and lender criteria.

Compliance Notice

A mortgage is secured against your home. You could lose your home if you do not keep up repayments on your mortgage.

Speak to a Specialist Mortgage Adviser

If you are considering a Joint Borrower Sole Proprietor mortgage in London or Greater London, or supporting a child buying near university, our experienced advisers can help.

• Call us: 0203 0111 1986

For more details on Joint Borrower Sole Proprietor mortgages, read our complete 2025 guide here: Complete Guide to Joint Borrower Sole Proprietor Mortgages in the UK (2025 Edition)

To understand how this Joint Borrower Sole Proprietor mortgage was structured and why it worked in this scenario, watch our video explanation below.

Important FCA Warning

As a mortgage is secured against your home, it may be repossessed if you do not keep up the mortgage repayments.