Loughborough Building Society has launched a 95% loan-to-value joint borrower sole proprietor mortgage.

It adds that the loan is set at a two-year variable discounted rate, currently 3.10% with a £499 arrangement fee, and available for residential loans in England and Wales.

The mutual says: “This solution allows older family members to help out younger and younger family members to help out their elders. So, with up to four people on the mortgage application family members are able to assist one another to own their own home no matter what their age.”

It adds: “Because all parties will be responsible for the mortgage payments, there is no requirement for the proprietor to be able to take on the mortgage alone until all family members are ready and able to make the change.”

The lender says for proprietors whose income does not cover the mortgage without the assistance of an additional joint borrower who lives independently from the mortgaged property, it will carry out an affordability assessment taking into account the income and commitments of all named parties.

The lender adds its criteria allows borrowers to potentially take a mortgage over 40 years, rather than have a restricted mortgage term at the outset.

Loughborough Building Society business development manager Ashley Pearson says: “We launched this solution in November 2020 at 85% LTV and have been pleased with the response.

“Introducing a product up to 95% LTV for standard JBSP means we’ll be able to help more people realise their home ownership ambitions. It also sits nicely alongside our 90% JBSP and our 100% deposit guarantee JBSP offerings.”