"Today’s launch of the Family-Backed Mortgage boosts the borrowing power of prospective homeowners by enabling them to combine incomes with a family member or friend while retaining independence to own a home in their own name"
- Barry Connolly - NatWest
NatWest has announced that it has introduced a new mortgage product aimed at helping first-time buyers increase their borrowing capacity by factoring in the income of a family member or friend.
The Family-Backed Mortgage, formally known as a Joint Borrower Sole Proprietor (JBSP) Mortgage, enables applicants to combine their income with that of another individual without sharing ownership of the property. The arrangement is intended to boost affordability for buyers struggling to meet lending thresholds on their own.
Under the scheme, a first-time buyer earning £28,000 with a 10% deposit could typically borrow around £124,450 under existing mortgage products. By adding a family member or friend earning £45,000 to the mortgage application, the buyer’s borrowing potential could increase to approximately £246,000, according to the bank. The supporter must obtain independent legal advice before entering the agreement.
In addition to the new product, NatWest has lowered its affordability stress rates, which could allow customers to borrow up to £33,000 more than previously possible. The bank said the adjustment is designed to balance higher borrowing potential with safeguards against future interest rate rises.
Barry Connolly, Managing Director of Homebuying at NatWest, said: “We are committed to providing more pathways to home ownership and helping first-time buyers to achieve their goals," comments Barry Connolly, Managing Director of Homebuying at NatWest.
"Today’s launch of the Family-Backed Mortgage boosts the borrowing power of prospective homeowners by enabling them to combine incomes with a family member or friend while retaining independence to own a home in their own name.
He adds, "In addition, we also announce that we have revised our affordability rates for mortgage customers, boosting the borrowing potential of hundreds of thousands of potential homeowners whilst continuing to ensure that they can afford their mortgage over the long term.
"We believe that this twin announcement can help instil hope amongst our customers that their dreams can be realised.”
