When the couple plans to embark on a real estate project, most often they use a mortgage. The mortgage being a rather complicated financing to obtain, borrowing together is sometimes the best solution to solidify your file. Whether you are cohabiting, civil partnership or married, you have the possibility of taking out a mortgage for two. How to obtain such funding? Explanations.
Lending institutions are extremely demanding when it comes to a mortgage. Given that this funding is of great importance, these institutions seek to protect themselves by putting in place a number of conditions. The borrower must in particular present a stable professional situation and good financial health. When the borrower is able to pay a personal contribution of 10% of his loan or more, he will also be considered as really committed to his contract, which reinforces the confidence of the bank. But this does not seem to be enough in the eyes of the bank, which is why it requires guarantees such as the deposit or loan insurance.
Thus, in the event of repayment default, whether or not beyond the control of the borrower, it will be able to recover the capital granted. However, there is also a situation that seems to reassure bankers:borrowing together. Married couple, cohabitants or PACS couple have the right to borrow together in order to solidify their profile. Indeed, compared to a single person, a couple receives more income together and therefore has a greater investment capacity, which is likely to reduce the risk of default. It should be noted, however, that if one of the co-borrowers is employed on a fixed-term contract, only the salary of the co-borrower on a permanent contract will be taken into account when calculating the couple's repayment capacity.
Borrowing together means taking out a solidarity mortgage. The loan is joint and several because it contains a solidarity clause which implies that in the event of default by one of the co-borrowers, the other is obliged to assume all the repayment on its own. This type of contract is not difficult to find. In reality, all that differs a solidarity loan from a conventional loan is that the bank will have two profiles to study instead of one. Thus, to find the most interesting proposal, you can absolutely use an online mortgage comparator.
This operation will only take you a few minutes while it will allow you to have visibility on the offers of the various credit organizations. All you have to do is fill out a loan application form which will be sent to all the partner credit organizations. Once the results are in hand, it will be up to you to carefully study the proposals to select the most advantageous. Note that the ownership of the property acquired through a solidarity loan will depend on the status of the couple. In the case of a married couple under the community of property regime, the property will be held in common. Otherwise, each of the co-borrowers will have a share corresponding to their interest in the property.
When a divorce or separation occurs while the credit is still being repaid, the obligation of the parties does not change. Everyone will have to honor their end of the bargain until the end. However, it is common for the property acquired to be sold to repay the loan in advance. The two co-borrowers will then have to share the resulting penalties. Sometimes the property is assigned to one of the co-borrowers in the division of property. In this case, he alone will be responsible for reimbursing the remaining sums.
