Black couple unpacking boxes in Shaker-style kitchen

Property -

The property ladder: how to give your loved ones a step-up

How parents, grandparents or other family members can support their loved ones to navigate the path to homeownership.


28th March 2024


James Hilton


In an era where property prices pose significant barriers to home ownership, parents, grandparents and family members have a unique opportunity to support their loved ones in achieving this milestone.

You can play a vital role in helping the younger generation onto the property ladder, including financial assistance, strategic planning, as well as innovative borrowing solutions like the joint- borrower sole-proprietor (JBSP) mortgage.


Financial support

If you have the means to provide financial support, there are a variety of ways to help your loved one purchase a property. Whether through outright gifts, loans, or other strategies, financial assistance can significantly ease the burden of accumulating a substantial deposit or meeting stringent mortgage requirements.

By gifting or lending funds for a deposit, you can enable the homebuyer to access more favourable mortgage terms, reducing interest rates and therefore monthly repayments.


Strategic planning

Beyond financial support, you can offer your invaluable guidance and strategic financial planning to navigate the complexities of property buying. By leveraging your expertise and network, you can help your loved one to identify promising investment opportunities, understand market trends, and negotiate favourable terms.

Moreover, you can instil financial literacy and prudent budgeting habits, empowering your loved one to make informed decisions and manage their finances responsibly. By fostering a culture of long-term financial planning and disciplined saving, you can equip your loved one with the tools to achieve their home ownership goals independently.


Support with a joint-borrower sole-proprietor mortgage

First-time buyers with limited income or savings can find getting on the property ladder particularly challenging, as they will be restricted on how much they can borrow.

A joint-borrower sole-proprietor (JBSP) mortgage is a way you could help a homebuyer increase their affordability without handing over any cash. In a JBSP mortgage arrangement, you act as a joint borrower alongside the homebuyer, leveraging your income and creditworthiness to secure a larger mortgage or more favourable terms for the homebuyer.

Unlike traditional joint mortgages, only the buyer will own the property, making them the sole proprietor. You would be on the mortgage as a joint borrower. This approach means your loved one retains full ownership and control over the property, while benefitting from your financial support.


Benefits of a joint-borrower sole-proprietor mortgage

  • For the parent, grandparent or other family member It is an opportunity to support your loved one in securing a home without directly gifting or loaning funds. Instead, you can leverage your financial standing to help the next generation to access mortgage financing. Additionally, by not having a legal stake in the property, you can mitigate potential inheritance tax implications and maintain your loved one’s financial independence.
  • For the next generation family member – The JBSP mortgage offers a pathway to home ownership with fewer financial barriers and improved affordability. By accessing larger loan amounts or more favourable mortgage terms, your loved one can secure their desired property without having to use all their savings or compromise on their lifestyle. Moreover, by retaining sole ownership of the property, they maintain autonomy and control over their investment, enabling them to build equity and wealth over time.
By leveraging your resources, expertise, and creativity, you can help get your loved one onto the property ladder and empower them to achieve their home ownership dreams.


Further reading



Thinking about selling your home? Consider home renovation first

Renovation is a fantastic way to increase the value of your property while realising the added enjoyment of having a refreshed space.


Location: The key factor to consider when choosing a home

The importance of location when choosing a home cannot be overstated. In this article we consider why location is important and how it can significantly affect your lifestyle and wellbeing.


Is now the right time to reduce your mortgage?

Given the changing financial landscape, many homeowners are asking an important question: Should I reduce my mortgage? In this article, we provide some thoughts on ways to reduce your mortgage and highlight what this might mean for you.

Becoming a client

Take control of your finances today by completing our enquiry form. Alternatively, you can call us on the number below and one of our team will be more than happy to talk about your future.

+44 (0)20 7012 2500

This is required

Brochures & email subscriptions

Request a brochure, or subscribe to our email updates.


Related services

Wealth Planning  •  Savings Accounts

Author -

James Hilton

James Hilton

Regulated Mortgage Adviser

James Hilton is a Regulated Mortgage Adviser and has been at Arbuthnot Latham for five years. He has thirty-five years’ experience in finance and specialises in advising clients on purchasing their residential properties.


This communication should be considered a marketing communication. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research. It is for information purposes only and does not constitute advice, a solicitation, recommendation or an offer to buy or sell any security or other investment or banking product or service. You should seek professional advice before making any investment decision. The value of investments, and the income from them can fall as well as rise, and may be affected by exchange rate fluctuations. Investors could get back less than they invest. Past performance is not a reliable indicator of future results. The tax treatment of investments depends upon individual circumstances and may be subject to change.

The contents of this communication are based on opinions or conditions as at the date of writing and may change without notice. To the extent permitted by law or regulation, no warranty of accuracy or completeness of this information is given and no liability is accepted for its use or reliance on it.