"We understand the challenges facing first-time buyers, and we are committed to simplifying the process."
Skipton Building Society has renamed its joint borrower sole proprietor (JBSP) scheme in a bid to simplify the product for first-time buyers.
To help combat mortgage jargon and to help first-time buyers understand the options available to them, Skipton has renamed JBSP to Income Booster to highlight what the product is.
The change comes after research by Skipton Building Society revealed that first-time buyers feel they have been left with limited options, as they don’t know what some of the mortgages available actually mean. The research of 1,000 aspiring first-time buyers revealed that 60% worry that their lack of understanding is delaying them getting onto the property ladder, with 52% saying they feel they may miss out on a better deal due to not understanding the different type of mortgages available to them.
Three in four have said the confusion has added to their stress levels during the process, with 70% agreeing the process would run smoother if everyone spoke in layman’s terms.
Skipton’s research found that 83% of first-time buyers who are receiving some sort of financial support towards their first home would find it impossible to get on the ladder without it.
Mortgage provider Generation Home (Gen H) initially launched an 'income booster' feature to the market when it launched in 2020. Gen H's offering includes a ‘deposit booster’ that allows friends and relatives to invest in a property alongside the homeowner, and an ‘income booster’ feature, which supports affordability by adding family members to the mortgage.
Gen H partnered with Skipton in support of the rename.
Jennifer Lloyd, head of mortgages and propositions at Skipton, said: “In an increasingly complex landscape of mortgage terms and product names, first-time buyers are finding themselves navigating uncharted waters. And without the right guidance, first-time buyers can often overlook some of the mortgage options that could potentially help them to step onto the property ladder sooner rather than later.
“At Skipton we want to cut down on the jargon and help first-time buyers to be aware of all the options available to them. Which is why we are renaming the joint borrow sole proprietor mortgage – simplifying the name to Income Booster, highlighting exactly what this product is about and to encourage prospective first-time buyers to find out more about it.
“We understand the challenges facing first-time buyers, and we are committed to simplifying the process. Our goal is to empower every individual to make informed decisions, ensuring that the dream of home ownership can become a reality.”
William Rice, CEO Of Gen H, added: “When we started lending in 2020, there was a clear need in the market for a reimagined joint borrower sole proprietor mortgage. First-time buyers needed more help onto the ladder, and the guarantor or joint mortgages available often prevented families from providing enough support. That’s why we created the income booster – a distinct, reimagined type of mortgage designed to help families lend more flexible support which benefits everyone.
“Like Gen H, Skipton has long been committed to innovating in the mortgage industry, and we’re glad to be working alongside them to create the change aspiring homeowners so desperately need – from designing new kinds of mortgages to eliminating unnecessary jargon from the process. It’s time for mortgages and homeownership to be simple, transparent, and fair, and we back Skipton as they continue to innovate and keep homeowners at the heart of what they do.”
