JBSP mortgage: what the parent is liable for, and how to come off it later

What you’re taking on

With a JBSP mortgage, the buyer owns the home and you join the mortgage to boost the income the lender can count. You’re a borrower but not an owner. For how it works, see JBSP mortgages explained. This guide is about the parent’s side.

The whole debt, not half

All the borrowers are jointly and severally liable. The lender can ask you for the full monthly payment, the arrears or, if the home is repossessed and sold for less than is owed, the shortfall. It doesn’t matter that you’ve never lived there or that your child agreed to pay.

No share in the home

You aren’t on the title, so you have no share in the property and no say if your child decides to sell or remortgage, unless something is separately agreed and recorded.

Your credit and your own borrowing

The mortgage shows on your credit file. Missed payments affect your score as well as your child’s, and other lenders will count the JBSP payments when you apply to borrow for yourself, for example to remortgage your own home.

If your child stops paying

Lenders usually contact all the borrowers once payments are missed. You can then pay, help your child sell, or agree a plan with the lender. Act early: arrears grow, and a repossession sale rarely achieves full value. If the relationship has broken down, take advice promptly, as you may have a claim against your child for what you’ve paid.

Can I come off the mortgage?

Yes, but only with the lender’s agreement. You can’t simply resign from it. The lender will release you if your child can show they can afford the mortgage on their own, under its lending rules at the time. That usually means:

• At a remortgage: your child moves to a new deal, with the same or another lender, in their sole name. This is the most common route.
• At the end of a fixed rate: many lenders let your child apply to remove you when they choose a new product.
• Mid-term: some lenders consider a “removal of borrower” application at any time, though early repayment charges may apply if it means a new deal.

Your child’s income has usually risen since they bought, which is what makes this possible. Talk to a mortgage broker a few months before the fixed rate ends. If your child still can’t afford it alone, the options are to stay on, add another borrower, or sell.

Other things to plan for

• Age limits: lenders often set the mortgage term by the oldest borrower’s age, which can shorten the term and raise the payments.
• If you die: the debt doesn’t disappear. The lender may look to your estate if your child can’t pay, so mention it in your will planning.
• Your child’s partner: if they move in, they may need to sign a deed of consent. If they contribute, a deed of trust protects everyone.

Put a family agreement in writing

A short written agreement between you and your child avoids misunderstandings later. It can cover who pays the mortgage, what happens if your child can’t, any money you’re putting in and whether it’s a gift or a loan, and when your child will try to remove you. It doesn’t bind the lender, but it records what you agreed.

Why the lender wants you to take advice

Because you take on full liability without owning anything, most JBSP lenders require you to be advised by a solicitor who isn’t acting for your child, and to sign a certificate before completion. It’s usually done by video call. See ILA for a JBSP mortgage.