Sometimes referred to as a Joint Borrower Sole Proprietor mortgage (JBSP), an Income Boost is a way of increasing your mortgage affordability with the help of a loved one. By adding some or all of their earnings to your household income, you'll increase your chance of being accepted for a remortgage.
This can be a lifesaver during times of pinched budgets and tightening affordability criteria, which can make it harder to be accepted for a new mortgage deal.
You’ll still be the sole owner of your home, and your guarantor won't need to contribute to monthly repayments. But if you are unable to pay, they’ll be required to step in.
All mortgages have risks and benefits. Here are the key things you should know about before applying for an Income Boost remortgage.
Increase your affordability
With an Income Boost, you can combine up to four income sources to significantly increase your mortgage affordability, so you can borrow what you need to remortgage onto a new deal.
Use as a short-term solution
If you can afford your mortgage by yourself in the future, you can remove your guarantor from the loan. In this way, an Income Boost can be a temporary safety net to help you when budgets are stretched.
Your guarantor won't be out of pocket
Your Booster doesn’t need to offer up cash savings or investments to help you remortgage. As long as you make your repayments each month, they won’t have to contribute financially.
You'll still be the sole owner
Your Booster won’t be listed on the deeds of your home. So you'll still be the sole owner, and your Booster’s tax position won’t be affected either.
Everyone on the mortgage is liable for the debt
If you cannot make your repayments, your guarantor will be required to step in. If no one makes the payments, this will impact the credit history of each applicant and could result in your home being repossessed.
Your Booster’s age could impact your repayments
Most lenders cap the mortgage term based on the age of the oldest applicant. If your Booster is over the age of 60, this means your mortgage term could be shorter, and therefore the repayments would be higher.
All applicants will go through affordability checks
Lenders need to ensure the mortgage is affordable for all applicants. Our assessment includes providing proof of income, outgoings, identification and a credit check.
Your Booster will have no legal rights to the property
As a guarantor, your Booster will not be a co-owner of the property and does not have an equity share, so they won’t benefit if the property’s value increases. If they are interested in co-investing in your property, explore a Dynamic Income Boost or Deposit Loan.
4 simple steps to remortgaging with Tembo
Create your own Tembo plan to book in a free, no-obligation call with one of our award-winning team. They can then see what remortgage rates and deals you are eligible for from a range of schemes.
Once the Tembo team have completed the qualification process, we’ll cover off any questions you might have about any of the remortgage deals we advise on.
Next, your dedicated advisor will undertake full affordability checks to prepare the mortgage application. Then we’ll submit it on your behalf!
Your Tembo advisor will be on hand to ensure everything runs smoothly, so you can move onto your new deal as quickly as possible.
There are a few reasons why you might want to remortgage. If you’re looking for something more specific, try these pages.
Switch to a new mortgage deal with your current lender through a product transfer.See details
Reduce your monthly costs by switching to a part interest, part repayment mortgage, while still chipping away at your loan.See details
Reduce your monthly costs in the short term by changing to an interest-only mortgage.See details
You can be snug in your very own home in 4 simple steps