Third Party Mortgages

Indirect mortgages Third Party mortgages (also known as Indirect mortgages or Joint Borrower Sole Proprietor Mortgages) are specialist type mortgages where there is more than one borrower who is responsible for the repayment of the loan, but where not all of the borrowers are owners of the property against which the loan is to be secured.

This type of mortgage has become increasingly common in recent years as they provide a way for parents to assist their children onto the property ladder, without having to be a joint owner of the Property with their children (thus avoiding the additional stamp duty payable where one of the purchasers already owns a residential property).​

With a Third Party mortgage, the borrower supporting the application is jointly liable for the debt, but because they are not a registered owner of the property, they may have no control over it and may not be entitled to any benefit from it.

There are considerable risks associated with this type of mortgage therefore if you are thinking about entering into an indirect mortgage it is important that you take independent Legal Advice before proceeding. Please contact us to see how we can assist.