You often hear people say that banks only grant loans to the rich. Or that you have to be two to borrow money. You should definitely take such statements with a grain of salt.
Naturally, every credit institution wants sufficient guarantees that they will be repaid in time. The more guarantees you can provide, the stronger you are in your shoes as a lending party. Whether you borrow alone or as a couple.
Borrow with two: a good idea?
More than one in 3 couples has a common current account or savings account. Whether or not with a separate bill. The common purchases within a household are increasingly made with the joint account. It is therefore logical that a couple take out a loan together.
Borrowing together also means that each signed party is responsible for the full repayment of the debt. Obtain sufficient information in advance about the consequences, especially if things turn out badly between both parties.
You know: whether you are married or legally or in fact cohabiting, you are more likely to receive a loan if two employees guarantee you.
Home loan, differ depending on the type of couple
If you want to borrow together for the purchase of a home, then you must make a distinction according to the type of couple that you are:
- Married and legally cohabiting couples : the partner is protected. The property cannot be sold or mortgaged without the permission of both partners. The bank will ask both partners to sign the housing loan.
- Actually cohabiting couples : the partner is not protected. Everyone can buy a house separately and only take out a home loan. If you still want to buy together, you can choose between one joint credit or two separate credits.
You can apply for a credit better with two
Borrowing is better as a couple or at least with 2 people who guarantee. The credit institutions prefer a double guarantee .
So do you have to get married quickly to make it easier to borrow? No. You can borrow two by calling on a co-borrower : a roommate, a family member, a close friend or a business partner. It is not that easy to find a co-borrower, because there is a responsibility attached to it.
According to the definition, the co-borrower is the person who guarantees the repayment together with the borrower. We can make a distinction according to the type of loan:
- installment loan : the borrowers sign the credit contract and their joint and several debtors together.
- mortgage loan : the borrowers sign the sales agreement together with the authentic deed . Together they are jointly and severally liable and both also own the property.
What you should remember: whether you choose a loan or take out a mortgage, the co-borrower is also responsible for repaying the full amount to the lending party. A tip: think twice before you sign, even if you are ‘just’ a co-borrower. The consequences can be huge.