Mortgage for two: registration rules, necessary documents

The essence of a mortgage for two and the main nuances

To answer the question, let us first examine the concept of such lending. A mortgage for two or joint lending is aimed at combining the total income of two persons and, accordingly, responsibility for formalized obligations. The agreement is concluded between the bank, the borrower and the co-borrower.

After the transaction is concluded, the obligation to repay the principal and interest falls on two people, that is, each will have to pay half of the monthly payment amount.

For a bank, this option is much more interesting than a mortgage for one person. If there are two co-borrowers, he has additional guarantees of fulfillment of obligations. However, even at the stage of submitting documents and considering the mortgage application, the lender strongly recommends immediately discussing the terms of servicing the loan between the parties to the transaction, namely, clearly assigning responsibilities for payments with their documentary recording. This must be done in order to avoid problems and misunderstandings in the future.

Another nuance of a mortgage for two is the peculiarities of registration of ownership. If spouses act as co-borrowers, then the property is jointly owned, and if strangers or relatives, then shared ownership. This feature should also be taken into account before submitting your application.

How can you get a mortgage loan for two?

Taking out a mortgage loan for two people is often practiced. The bank will approve such an application without any problems. Especially if the borrowers are officially married.

The meaning of such a transaction is that the loan is issued for two (sometimes more) people. The second person could be a spouse, relative, friend, or even the employer of the first borrower. In this case, the loan is paid by several people, not just one. The bank has additional guarantees for the return of issued loan funds in the event of unforeseen situations.

The total income of both payers is greater and, accordingly, it will be able to cover the monthly loan payment. In some situations, it is not even necessary to provide income information.

The most commonly used procedure is the registration of contractual relations with the second person taking on loan obligations. In this case, the debt obligations will be divided equally between them, that is, each of them will have their own shared ownership in the purchased real estate.

Who can become a co-borrower on a mortgage

Anyone cannot become a co-borrower on a mortgage loan. He must fully comply with the bank’s requirements and be ready to provide the same set of documents as the main borrower, since he is a full-fledged participant in the mortgage transaction.

You can see the requirements for a mortgage in a separate post.

The client’s friends, relatives, business partners, etc. can play this role, if the bank allows this. If the loan is issued to one of the spouses who are officially married (family mortgage), then the second will automatically become a co-borrower. This feature is provided for by Russian legislation and is explained by the fact that all property acquired during marriage is common.

IMPORTANT! If, in the process of servicing their debt, a husband and wife decided to divorce (a mortgage was issued for two spouses), then they will still be required to continue making mandatory payments on the loan (if the issue cannot be resolved otherwise). Mortgage and divorce are discussed in more detail in a special post.

You can involve more than just one person as a co-borrower. Some banks allow registration of up to 3-5 co-borrowers.

The subtleties of obtaining a double mortgage for married couples

Obtaining a mortgage loan with the involvement of guarantors and co-borrowers will be very justified if the income level of one person leaves much to be desired.

Until recently, banks refused to lend to people living in civil marriages. Today this is no longer a problem, and even those families who, for various reasons, have not yet legalized their relationship can get a mortgage loan.

The only thing is that the bank is more wary of such couples and in such a situation does not regard common-law spouses as co-borrowers. The mortgage agreement will be drawn up in the name of one of them, and after full payment of the debt, ownership of the property also remains with him.

A civil marriage may break up, this will in no way affect payments, and the purchased apartment will remain the property of the borrower in whose name the loan was issued and who repaid the debt on it.

If the couple has formalized their relationship, in order to protect themselves from unnecessary risks, the bank may insist that one of them act as a co-borrower in the transaction.

In such a situation, the most important danger for the creditor is a potential divorce, when it is necessary to divide all acquired property in half.

It must be remembered that in this case, the bank has the right to contact any co-borrower so that he fulfills his loan obligations and it does not matter to whom the agreement was actually drawn up.

Banks usually present a standard set of requirements, as when executing a mortgage agreement by one person. The most important of them are:

1. Both borrowers must be over 18 years of age and have worked at their last job for at least 6 months (continuous work experience);
2. If the loan is issued by a family, notarized consent is also required from the second spouse or all co-borrowers who take part in the transaction;

It will be especially bad for those couples who, at the time of concluding the mortgage agreement, are still in the process of divorce proceedings and have not yet received a divorce.

To obtain a loan, the consent of the spouse is required, which in practice cannot be obtained. At the same time, you should not hope that the banking organization will turn a blind eye to the absence of this piece of paper and issue a loan secretly from the legitimate other half.

Interesting material : the best personal loans for you.

What risks and obligations will the co-borrower have?

The rights and obligations of a co-borrower when concluding a contract for the purchase of housing are identical to the rights and obligations of the main borrower. That is, they bear equal or joint responsibility for the fulfillment of formalized obligations to the bank.

If the borrower has difficulty servicing the debt, then making current payments will become the responsibility of the co-borrower. You need to be prepared for this in advance, and try to discuss all possible options and nuances of the transaction with each other.

At the request of clients, the bank can draw up an additional agreement to the loan agreement, which will detail the terms of distribution of responsibility and ownership rights.

NOTE! Any violation of credit obligations by one party will lead to their transfer to the second. It is important to understand the potential risks and not agree to participate in a transaction if you do not fully trust the co-borrower or borrower.

Required documents

How to get a mortgage for two? To conclude a contract you will need to prepare:

• Passport of both borrowers;
• Certificate in form from the place of employment about the length of service and salary level of not only the borrower, but also his co-borrower;
• Documents about their marital status (marriage certificate, if any);
• Documents about family composition and the presence of children;
• Medical certificate from a mental health center.

The bank may be forced to issue a mortgage loan to the couple until they insure their lives, because they are both equally responsible for the debt obligations.

In such a situation, if one of the parties to the transaction for any reason becomes unable to work and cannot repay the debt, the insurance company will come to his aid, and the borrower himself remains the owner of the home.

In case of divorce, a good solution would be to draw up a prenuptial agreement that clearly states the shares of each family member.

Many financial institutions are ready to accommodate the family and offer them a more simplified package of documents that need to be collected to submit an application.

In this way they are trying to attract more customers. It is quite possible that in such a situation you will not even have to confirm your solvency. Everything will depend solely on the bank to which the family decides to apply for a mortgage loan.

Pros and cons of a mortgage for two

A mortgage for two has undeniable advantages and significant disadvantages. The advantages include:

• the ability to take into account the income of the co-borrower and, accordingly, increase the loan amount;
• equal division of mortgage payments (usually unless the co-borrower is a spouse);
• the likelihood of early repayment of debt;
• increasing the likelihood of loan application approval.

Among the disadvantages:

• mandatory provision by the co-borrower of a complete set of documentation;
• division of property in the event of divorce (if a family mortgage was issued) or failure of the second responsible party to fulfill its obligations;
• the risk of ruining your credit history because of a co-borrower.

Before making a final decision to obtain such a mortgage, it is recommended to carefully weigh the indicated pros and cons, and only if you are completely confident in the success of the transaction, submit documents.

Can one person take out a mortgage and who will get it?

The purpose of any bank is to make a profit. When issuing a mortgage loan, the client pays the organization a certain percentage for the use of borrowed funds. Getting a mortgage for one person is possible if the person meets all the bank’s requirements and is able to provide a full list of documents.

The organization pays special attention to verifying the identity of the potential borrower, the person’s ability and willingness to pay the loan. Today there are several criteria for assessing a client, and non-compliance with at least one parameter significantly reduces the chances of approval of the application.

The risk of failure increases significantly if the following circumstances exist:

• the citizen is included in the list of unscrupulous clients;
• there is an outstanding loan and evidence of loan arrears;
• there is no permanent source of income;
• the person is unemployed or frequently changes jobs;
• small salary.

When assessing a client, the bank takes into account the amount of income he receives and the availability of property that can serve as collateral for the loan. If a citizen spends 40% or more of the family budget to repay the loan, then with a high degree of probability the loan will be denied. This value is considered a threshold and if it is exceeded, it will be difficult for a person to repay the debt. A low level of income is fraught with delays and a high risk of non-repayment of issued funds.

Several years ago, a prerequisite for issuing a loan was the ability to provide a salary certificate. Such a requirement led to the fact that some citizens could not obtain a loan. This category included those who received “gray” salaries and did not have official employment. Today, lending conditions have become more loyal and a large number of banking products have appeared on the market, which are called “mortgages with two documents.” They allow you to apply for a loan using a simplified procedure, but require a higher interest rate compared to standard programs.

How to apply

Since a double mortgage has certain nuances, it is better to submit an application by personally contacting the office of the selected bank. After a detailed consultation with the bank manager, the borrower and co-borrower will have to fill out and sign application forms and provide the requested package of papers. You need to check with the manager whether the bank works with mortgages for two and what requirements there are for borrowers, whether non-spouses can apply for it if required.

After submitting the application for consideration, a response from the bank will be received in approximately 3-5 business days.

Which banks consider mortgages for two?

You can apply for a loan with the involvement of a close relative as a co-borrower in almost any major bank in the Russian Federation.

Banks that allow mortgages for two people not for close relatives are below:

• Sberbank;
• Bank "Levoberezhny";
• DeltaCredit;
• Rosselkhozbank;
• Transcapitalbank;
• Absalutbank;
• Globex;
• Svyazbank;
• Ak Bars Bank;
• Uralsib;
• Sovcombank;
• Russian Capital Bank.

Each of them draws up loan agreements for the purchase of real estate with the participation of up to 3-5 co-borrowers who meet key requirements for age, income, job stability and quality of credit history.

Mortgage in a civil marriage in Sberbank

The leader of the Russian credit market today offers a large number of mortgage programs. Among banking offers, you can choose the option for purchasing primary and secondary housing, take advantage of the opportunity to attract maternity capital or government support funds.

Sberbank provides the opportunity to register an apartment as common property:

• two or more co-borrowers;
• the borrower and his family members, including children and parents;
• co-borrower and spouse, members of their family.

Sberbank works with Russian citizens aged 21 to 65 years. To obtain approval, the client must have a good credit history and the ability to meet the bank's conditions. One of the main conditions is the requirement to have work experience. His term must be equal to six months in the last place, and the uninterrupted period of work for the last 5 years must be at least a year.

Taking out a mortgage for two or more people allows the borrower to increase the chances of receiving a loan. The procedure involves sequential passage of certain stages, and citizens who meet all the requirements of the credit institution can count on a positive decision.