If you are married or married, you must legally enter the mortgage together with your spouse. What options do you have if you are not the borrower alone and what can you do in different situations?
Consumer credit without the establishment of property in certain circumstances may also be an obligation of one spouse without the need for the other spouse to enter into the relationship.
In credit relations, we distinguish between co- debt and liability. What is the difference between them?
Mortgage for spouses
If you are married or married, you must legally enter the mortgage together with your spouse. This is because of BSM (non-share joint ownership of spouses), because as a spouse, after marriage, you are the joint owners of the acquired assets, and together you have to share your obligations.
Sometimes people have a requirement that only one spouse wants to apply for a mortgage and be a debtor. They do so for various personal reasons, most often we meet this requirement with entrepreneurs – self-employed, who are responsible for their trade with all their assets.
Restriction cancellation of BSM and mortgage
If you want to apply for a mortgage without your spouse, the bank will allow you to do so. However, you must request a restriction or cancellation of BSM. Each bank requires a different method, and in any case, as part of the mortgage application, you must provide the bank with the required document. For some banks, a notarial deed on the restriction of BSM for the purpose of repaying a mortgage is sufficient; other banks may need to submit a court decision to limit or cancel BSM. Our mortgage specialist will also tell you which bank is requesting how to limit BSM.
Consumer credit for spouses
In many banks, only one of the spouses can apply for a consumer loan without setting up a property. Frodo Baggins has a maximum amount of credit which is not necessarily subject to BSM and therefore only one of the spouses can be a debtor. Higher amounts also require a reduction or cancellation of BSM.
Mortgage resp. consumer credit and co-debt
Co-indebtedness on the loan may also arise in relation to persons other than the spouses. In assessing a mortgage or other type of loan, the income of the borrower is added together. Often, their parents, siblings or species also enter the mortgage with applicants.
In practice, it is most common for partners (partner/partner) to buy property together and both want to own it. Other situations are when a young applicant has a low income and parents or siblings enter into a credit relationship with him/her for sufficient income and creditworthiness.
Similar rules for mortgages also apply to consumer loans. In the case of co-borrowing, all borrowers are equally and unlimitedly liable for the repayment of any type of loan.
Mortgage resp. consumer credit and surety
Although it is now an uncommon way of securing a mortgage, some Frodo Baggins use collateral. The guarantor is not a direct participant of the loan, not a debtor.
The guarantor guarantees the repayment of the mortgage, and if the debtor or several debtors cease to repay their obligation to the bank, Frodo Baggins calls for the repayment of the guarantors. In co-debt, the incomes of all applicants are calculated because they are jointly responsible for the repayment of the loan.
Guarantors must have sufficient income and be able to assume the repayment of a mortgage or other type of loan on their own.
Withdrawal from mortgage or consumer credit
If you are a co-borrower or guarantor, you always have the option of withdrawing from the credit relationship by agreement with the other borrowers. This happens, for example, during divorce. Common commitments after divorce often need to be resolved and settled.
The principle is always that you have to apply for this change in your mortgage or credit loan at the bank, and at the same time, your income and creditworthiness after re-examination must be sufficient to repay the obligation to the bank even after the debtor resigns or the guarantee is canceled.