Jbsp Buy To Let First Time Buyer First Time Landlord

The Clients

The applicant was looking to purchase their first property as an investment and would therefore be both a First-Time Buyer and First-Time Landlord. They had previously approached another broker but were unable to proceed due to a lack of personal income and limited lender appetite for this profile.

The Challenge

Buy-to-Let lenders typically require applicants to demonstrate a minimum earned income alongside rental affordability. In this case, the main applicant had no personal income, immediately ruling out the majority of mainstream lenders.

In addition, the deposit funds were being raised from the sale of a property overseas. Funds originating outside the UK can create enhanced underwriting scrutiny and strict anti-money laundering requirements, particularly where the source of funds must be clearly evidenced and traceable.

The situation was further complicated by the need to strengthen the application without transferring ownership of the property to another party.

The Solution

We structured the mortgage on a Joint Borrower Sole Proprietor (JBSP) basis. A family member was introduced as a joint borrower to support affordability and underwriting strength, while the property remained solely in the applicant’s name.

Although the joint borrower resides overseas, they are employed and already own property in the UK, providing additional reassurance to the lender.

We worked closely with the clients to fully evidence the deposit, documenting the overseas property sale and creating a complete audit trail to satisfy both the lender and compliance requirements.

We secured the mortgage with a specialist lender on the following terms:

• Property value: £750,000

• Loan amount: £500,000 

• Rate: 5.56% (5-year fixed)

• Term: 25 years

• Monthly payment (interest-only): £2,317

 

The Outcome

The mortgage was approved, enabling the client to proceed with their first investment property and enter the Buy-to-Let market despite having no personal income.

By structuring the case appropriately and placing it with a lender comfortable with JBSP arrangements, overseas joint borrowers and foreign deposit funds, we were able to deliver a solution where a previous broker had been unable to proceed.

This case demonstrates how specialist structuring and lender knowledge can make complex investment purchases achievable even for first-time landlords.