Will my parents have to pay stamp duty if they go on the mortgage?

If they're on the property deeds and already own a home, they'll likely face the 3% additional property stamp duty surcharge. A JBSP mortgage avoids this — parents are on the mortgage but NOT on the deeds.

What is a JBSP mortgage?

Joint Borrower Sole Proprietor — your parents (or family members) are joint borrowers on the mortgage, helping with affordability. But only you are the legal owner of the property. This avoids the stamp duty surcharge and means you still qualify as a first-time buyer.

What happens if my parents can't make the payments?

As joint borrowers, your parents are equally liable for the mortgage. If you can't pay, the lender can pursue them for the full amount. Make sure everyone understands this responsibility before proceeding.

Can my parents use their pension income?

Yes, many lenders accept pension income for JBSP applications. However, some lenders have age limits — the mortgage term may need to end before the oldest borrower reaches 70–80 (varies by lender).

Joint Mortgage With Parents: How It Works in the UK

A joint mortgage with parents allows a parent to be named on the mortgage alongside their child to boost affordability. The most popular option is a JBSP (Joint Borrower Sole Proprietor) mortgage, where the parent helps with income but is not on the property deeds — avoiding the 3% stamp duty surcharge.

Why Get a Mortgage With Your Parents?

With house prices averaging over £300,000 and affordability stretched by rising interest rates, many first-time buyers simply can't borrow enough on their own. Adding a parent's income to the application can significantly increase borrowing power.

Example

You earn £30,000/year — most lenders would offer you £135,000–£165,000.

Add a parent earning £40,000 and the combined income of £70,000 could unlock £315,000–£385,000.

Option 1: Joint Borrower Sole Proprietor (JBSP)

This is the most popular option for buying with parents. Here's how it works:

Your parent(s) go on the mortgage as joint borrowers
Only you go on the property deeds as sole owner
Their income is used for affordability — increasing how much you can borrow
Because they're not on the deeds, no additional stamp duty surcharge applies
You still count as a first-time buyer (with stamp duty relief)

Available from lenders including Barclays, Halifax, Metro Bank, and many building societies.

Option 2: Guarantor Mortgages

Rather than being on the mortgage, your parents guarantee it — putting up their own property or savings as security.

Property as security: A charge is placed on your parents' home. If you default, the lender can pursue their property.
Savings as security: Parents deposit a sum (typically 10–20% of the property value) with the lender. It's held for a set period and returned once you've built enough equity.

Read our full guide: Guarantor Mortgages Explained →

Option 3: Family Offset Mortgages

Your parents deposit their savings into an account linked to your mortgage. Their savings offset your mortgage balance, reducing the interest you pay — but they don't earn interest on those savings while they're linked.

Example

You borrow £250,000. Your parents deposit £50,000 into the offset account. You only pay interest on £200,000 — saving hundreds per month.

Parents get their savings back once you've built enough equity or after an agreed period.

Stamp Duty: The Critical Detail

If your parents are added to the property deeds (as joint owners), and they already own a home, they'll face the 3% additional stamp duty surcharge on the entire purchase price. On a £300,000 property, that's an extra £9,000.

This is why JBSP mortgages are so popular — parents help with affordability but stay off the deeds, avoiding the surcharge entirely.

Things to Consider Before Buying With Family

Legal liability: Joint borrowers are equally responsible for the full mortgage. If you can't pay, your parents must.
Credit impact: The mortgage appears on your parents' credit file, which could affect their own borrowing capacity.
Relationship dynamics: Money and family can create tension. Set clear expectations and put everything in writing.
Exit strategy: Plan for when/how your parents come off the mortgage (usually when you remortgage and can afford it alone).
Independent legal advice: All parties should get separate legal advice to understand their obligations.

Get Free Expert Advice on Family Mortgages

Every family's situation is different. Our fee-free advisors specialise in finding the right lender for JBSP and guarantor mortgages — and we'll explain exactly how each option works for your circumstances.

Get free mortgage advice → or chat to us on WhatsApp.

Frequently Asked Questions

Will my parents have to pay stamp duty if they go on the mortgage?: If they're on the property deeds and already own a home, they'll likely face the 3% additional property stamp duty surcharge. A JBSP mortgage avoids this — parents are on the mortgage but NOT on the deeds.
What is a JBSP mortgage?: Joint Borrower Sole Proprietor — your parents (or family members) are joint borrowers on the mortgage, helping with affordability. But only you are the legal owner of the property. This avoids the stamp duty surcharge and means you still qualify as a first-time buyer.
What happens if my parents can't make the payments?: As joint borrowers, your parents are equally liable for the mortgage. If you can't pay, the lender can pursue them for the full amount. Make sure everyone understands this responsibility before proceeding.
Can my parents use their pension income?: Yes, many lenders accept pension income for JBSP applications. However, some lenders have age limits — the mortgage term may need to end before the oldest borrower reaches 70–80 (varies by lender).

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