If you’re an expat living in Dubai or Abu Dhabi, you’ve likely enjoyed the financial benefits of a higher salary, lower taxes, and the chance to save more than you ever could back in the UK. But while you’ve built your life abroad, your children may be returning to the UK to attend university or start work.
At this stage in their lives, they may need help getting on the UK property ladder.
Rather than parents having to pay high rents or children struggle with rising house prices and high rental costs, there’s a smart way to support them without paying additional taxes – a Joint Borrower Sole Proprietor (JBSP) mortgage.
This mortgage option allows parents to use their income to help children buy a home – without being named on the property deeds, which means no stamp duty surcharge on a second home.
Why consider a JBSP mortgage?
For many young people, affordability is the biggest hurdle when trying to buy their first home. Even with a good job, salaries often don’t stretch far enough to meet the requirements of mortgage lenders. That’s where JBSP mortgages come in.
A JBSP mortgage lets up to four people be named on a mortgage application, using multiple incomes to boost borrowing power. However, only the child’s name goes on the property deeds – so the parents don’t legally own the home and avoid the 3% second-home stamp duty surcharge.
How expats can use JBSP mortgages to help their children
For British expats living in the UAE, investing in UK property for your children can be a smart financial move.
As our Expat Mortgage Expert, Ryan Radford, explains, “We recently helped a couple buy a property in Leeds for their daughter, who is starting University. Instead of paying rent for three years (or longer if she stays for a postgraduate degree), they’ve secured an asset that will benefit their family long-term.”
Ryan continues; “With their second child also planning to study locally, the decision to buy rather than rent made perfect sense. In this case, a JBSP mortgage enabled them to provide financial support while avoiding unnecessary tax penalties.”
The benefits of a JBSP mortgage for expats
- No Stamp Duty surcharge – Because parents aren’t named on the property deeds, they avoid the extra 3% charge that applies to second-home purchases.
- Increased borrowing power – By adding parents’ income, children can borrow more than they would on their own.
- Flexible ownership – Over time, the child can take over the mortgage solely in their own name.
- Long-term investment – Instead of paying rent to a landlord, your money goes into property ownership, which can benefit your family’s financial future.
- UK ties – Keeping a property in the UK means maintaining financial and residential ties to your home country.
Who is eligible for a JBSP mortgage?
JBSP mortgages are a great fit for expats looking to help their children buy a home in the UK. Most lenders consider:
- Parents with a stable foreign income
- First-time buyers who need affordability support
- Families looking to avoid extra stamp duty costs
Is a JBSP mortgage right for you?
If your child is looking to buy a home in the UK but can’t afford it on their own, a JBSP mortgage could be the ideal solution. It allows you to support them financially without being a legal property owner – a win-win for both parents and children.
To find out more about how you can help your child onto the property ladder with a JBSP mortgage, get in touch today.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.