The new product is an income booster mortgage, otherwise known as joint borrower sole proprietor
Hinckley & Rugby Building Society has unveiled its latest mortgage offering, Flex Together, designed to support first and subsequent homebuyers grappling with affordability challenges.
Flex Together, an income booster mortgage or joint borrower sole proprietor (JBSP), allows inclusion of family and friends in the mortgage application process, augmenting the borrowing capacity. While all parties share responsibility, only the primary purchaser assumes legal ownership.
The new offering also features flexible criteria, with Hinckley & Rugby accommodating up to four borrowers on a joint application, even if they are not family members. Affordability is calculated based on an income multiple of times 4.49 for the two highest earners, and times one for any additional applicants, at up to 95% loan-to-value (LTV).
The launch of Flex Together aligns with the current emphasis on JBSP mortgage products, driven by the ongoing impact of the cost-of-living crisis on first-time buyers. Legal and General (L&G) had previously projected a surge in family financial support for mortgage applications, expecting a 47% increase in 2023. Knowledge Bank, a sourcing system, notes that ‘joint borrower sole proprietor’ has emerged as one of the most-searched terms by brokers.
Flex Together joins Hinckley & Rugby’s existing flexible (Flex) range, which includes Income Flex —with a times 5.5 income multiple for non-standard income patterns and no minimum income requirement — and Credit Flex, catering to individuals with adverse credit histories, including county court judgments (CCJs) and individual voluntary arrangements (IVAs).
“What makes Flex Together unique is the even greater flexibility offered by adding a tailored term option,” Laura Sneddon (pictured), head of mortgage sales at Hinckley & Rugby Building Society, pointed out. “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.”
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