Are you thinking about finally getting your own home? Then you do well. Moreover, nowadays, when mortgage rates are on the rise. There is simply nothing to wait for. However, the question is whether to apply for a mortgage loan as an individual or a spouse or partner. Although it may not seem at first sight, a mortgage in two has a number of advantages, which we will now introduce you to a little more in detail.
Better negotiating conditions
If you apply for a mortgage in two, you will surely get into a better negotiating position with the bank. There is no doubt about that. This is mainly due to the fact that everything multiplies. You can start by presenting your overall creditworthiness. This is clearly increased by the sum of two incomes, and this can also prevent unwanted rejection of the application at the bank. Increased creditworthiness is associated with the amount of subsistence minimum, which is suddenly budgeted. These are probably the most important benefits for a mortgage loan in two, but they are packed many more.
Higher repayment security
Being able to put together a higher monthly payment from two incomes can help you pay off your mortgage sooner. And because of shorter maturity. Such a model is beneficial for the elderly, who would not be able to pay their mortgages separately until retirement age, or to the maximum limit set by banking companies for 70 years. In two you will redeem such a debt much sooner.
When repaying two people, there is also a lower risk that monthly payments will not be possible in the event of a loss of one income. In that case, any danger of distraint, seizure of assets and debt traps is delayed. Here too, it is better for two. Finally, you do not have to worry about any property rights and distribution of acquired property. When signing a mortgage loan agreement in two, it will be clearly defined what the share of the two persons, whether spouses and common property of spouses or free partners.
Who can be your classmate?
It is true that throughout the article we mention above all the most typical variant of a mortgage in two. And this is one where partners living in the same household or even spouses apply for a loan. However, they are not the only ones who can apply for a mortgage in two. They may be totally different people who only know each other and in this way meet each other. Although such a model is not very common. This is more likely that one of your parents will be your co-applicant.
At the age of majority, the majority of partnerships are not dealt with so much, or they do not have the same weight when approving a mortgage application. You should also know that a mortgage in two may not be a finite number. There are banking companies on the market that can lend money to up to four applicants at the same time and must live in a maximum of two different households.