Hinckley & Rugby Building Society has launched a new mortgage product aimed at helping first and next time buyers who are struggling with affordability.
Flex Together is an income booster mortgage, otherwise known as Joint Borrower Sole Proprietor (JBSP).
It allows family and friends to be included on the mortgage application, increasing the amount that can be borrowed.
All parties share responsibility for the mortgage, but only the main purchaser is the legal owner.
The launch of Flex Together comes at a time of increased focus on JBSP mortgage products, particularly due to the continuing impact of the cost-of-living crisis on first-time buyers.
Legal and General (L&G) had predicted that financial assistance by families to support mortgage applications would rise to 47% in 2023, and according to sourcing system Knowledge Bank, ‘Joint Borrower Sole Proprietor’ has become one of the most-searched terms by brokers.
The criteria for Flex Together are very flexible. Hinckley & Rugby allows up to four borrowers on a joint application and accept applicants who are not family members.
Additionally, they calculate affordability based on an income multiple of x4.49 for each borrower at up to 95% loan-to-value (LTV).
Laura Sneddon, head of mortgage sales, said: “What makes Flex Together unique is the even greater flexibility offered by adding a Tailored Term option.
“This enables different applicants to share the mortgage over different timescales, which is a major advantage when there’s a significant age gap between applicants.
“Unlike many other lenders, we don’t restrict all parties to the shorter term that’s applicable to the oldest applicant. Instead, we calculate what the main applicant can afford over the maximum term, and tailor an older applicant’s contribution over a shorter term.”
