When spouses plan to buy, it is often a matter of course for them to take out the necessary credit together. Many comparison portals and banks also promise a higher probability of funding and more favorable terms if the application is made by two people.
Find out here the advantages and disadvantages of a two-person loan.
Married couples are not obliged to borrow together
The credit comparator states that 20% of all loan is applied for by two people – and married couples often believe that they can only take out a loan together. Various banks are responsible for the dissemination of this opinion, and regardless of the wishes of the spouses require the signature of both spouses. The joint loan agreement is advantageous for the bank, as it can access two responsible debtors in the event of non-repayment or after a possible divorce. In principle, however, each spouse can take out a loan alone.
Advantage 1: Low interest rates thanks to good creditworthiness
Many banks generally do not sell their loan at flat rates. The interest stated in offers and credit comparisons are “from-to values”, for example “2.75% to 10.99%”.
In the case of an unfavorable credit rating, higher interest rates accrue, with a positive credit rating lower ones. If both spouses have their own income, they can improve their creditworthiness by borrowing together and can receive cheaper interest rates.
Advantage 2: Higher loan amount possible with two incomes
If both spouses have their own income, borrowing together can be beneficial. The spouse with the lower income would receive a correspondingly lower loan amount from the bank. If both spouses sign the loan agreement, the credit check is based on the entire household income. Married couples thus improve their chances of lending and can take out a higher loan amount.
Many banks and comparison portals recommend two borrowers. Here in the example the application of the Financescout24 portal.
Disadvantage 1: negative credit rating entry worsens overall credit rating
If a negative characteristic is saved for a spouse at credit rating , his credit rating deteriorates significantly. This partner alone might not get a loan. However, the negative credit rating entry can also have an effect on joint borrowing, because it worsens the creditworthiness of the community. It may be advantageous if the spouse with the positive creditworthiness applies for the loan alone.
Disadvantage 2: joint and several liability
The majority of the couples apply for the legal property regime, ie the gain community, when they marry. The economic community is limited to gaining marriage. If one spouse takes out a loan alone to make a purchase alone, the other partner is not automatically liable for it. It is different with joint borrowing. In this case, spouses are still jointly and severally liable to the bank after a divorce.
Conclusion: pay attention to personal situation
We have summarized the most important advantages and disadvantages of joint borrowing for you in this article. Experience has shown that a joint loan is cheaper in most cases. However, in general statement can be made as to whether the joint application is more suitable for you than the individual application. Check your personal situation and weigh up the advantages and disadvantages.