Hinckley & Rugby Building Society has unveiled a new mortgage product, the “Flex Together” Joint Borrower Sole Proprietor (JBSP). This aims to offer a much-needed helping hand to those grappling with the escalating cost-of-living crisis.

Key Features of Flex Together Mortgage

• Joint Borrower, Sole Proprietor Model: Unique to this mortgage is its Joint Borrower Sole Proprietor structure. It permits up to four applicants to collectively apply for a mortgage, even if they aren’t related. This feature opens doors for friends or unrelated individuals to come together, pooling their financial resources to purchase a home.
• Enhanced Affordability with Higher Income Multiples: In an attempt to widen the net of eligibility, the mortgage calculates affordability by allowing an income multiple of 4.49 times for each applicant. This approach significantly boosts the borrowing capacity of potential buyers.
• High Loan to Value Ratio: The Flex Together mortgage offers an attractive up to 95% Loan to Value (LTV) ratio, enabling buyers to secure a home with a smaller deposit. This aspect is particularly beneficial for those who may struggle to save for a large down payment.

Tailored Term Option

Laura Sneddon, the head of mortgage sales at Hinckley & Rugby Building Society, highlights the Tailored Term option as a standout feature of the Flex Together mortgage, “What makes Flex Together unique is the even greater flexibility offered by adding a Tailored Term option. This enables different applicants to share the mortgage over different timescales, which is a major advantage when there’s a significant age gap between applicants.”

Breaking the Age Barrier in Mortgage Terms

Flex Together deviates from the norm where all parties are usually bound to the mortgage term of the oldest applicant. Instead, it calculates what the main applicant can afford over the maximum term, while allowing older applicants to contribute over a shorter period. This flexibility ensures that the mortgage arrangement is equitable and sustainable for all parties involved.