I am a first time buyer and in order to be able to afford a property my Mum and Dad have offered to help me with paying the deposit. I have heard this is possible with a JBSP mortgage but I don't know what this is. Can you explain?

JBSP means 'joint borrower sole proprietor'. This type of mortgage is relatively rare at the moment, because not many banks offer it but it is becoming increasingly popular. If your Mum and Dad are able to help you financially with the funds for a deposit a JBSP mortgage could be a good option for you. With this type of mortgage your parents will be joint borrowers with you but you will be the sole owner of the property thus avoiding any risk of your Mum and Dad sharing ownership of your property and also avoiding a three per cent Stamp Duty Land Tax surcharge.

However your parents must take independent legal advice as they too will be 'jointly and severally' responsible for this mortgage - and so liable for all repayments if you default.

Your Mum and Dad must also be aware that they can't ask you for the money back unless you sell the property and they might never be able to recover this money from you. The legal risks for your Mum and Dad are quite substantial as it could mean that they lose money with this property transaction.

My advice is for you all to get as much information as possible from your mortgage broker, your solicitor and tax advisor to find out whether this form of mortgage still looks attractive when you are clear on the full picture.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.