The joint loan: what are the advantages and what are the problems?
The joint loan is a type of loan for the purchase of a property that provides for the signature by two different people , who simultaneously become owners of the loan . In reality, within this typology there are different possibilities , whose differences are however very important given that the joint account provides for the participation of the second person as the new owner of the property or even only guarantor of the loan. Indeed, it is not always the applicants who choose this option, but it may also be the bank that needs additional guarantees.
A joint loan does not change form compared to a traditional loan
there is a fixed or variable interest rate and an amortization plan for the repayment of the loaned capital. Why then choose the joint account? The most common possibility is that the applicants apply. This usually happens when both have become owners of the house , as enshrined in the contract of sale. In this case, the two mortgage holders must present the same documentation, which is the same as for the opening of the loan by a single person: documents attesting to the family and income situation, in addition to the deed of sale. Here you will find the list of necessary documents.
A first difference arises when only one of the two mortgage holders can claim an income
In fact, when both are producers of income, both are owners of the mortgage (borrowers), owners of the property and, above all, guarantors. This means that in the event of arrears or non-payments, the bank will be able to claim both. However, if only one produces income, the other holder of the loan will not be considered guarantor of the loan . However, if the contract provides for it, the bank will still be able to make claims on him too.
Finally, the most frequent case when the bank asks the joint account occurs when only one of the subjects is the owner of the property and applies for a loan, in the absence, however, of adequate income and asset guarantees. In this case, the joint loan serves to provide the bank with additional guarantees . However, this time the guarantor may be the subject of requests from the credit institution only after the bank has turned to the owner of the property.