Borrowers increase your chances of getting a loan granted.
If you are looking for a loan you can increase your chances of finding a lender if you have a co-borrower . If you want to find a unsecured private loan with a co-borrower, you can choose one from the list below. Click on a lender and start your application for a unsecured mortgage.
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If you are looking for a loan with a co-applicant, you can choose a lender from the list above and you will be one step closer to a loan. Whether you want to take out a car loan without cash or a renovation loan, you can find lenders on this site. You increase your likelihood of getting a loan granted when you are two people. Here you can borrow SEK 75,000 without any security for a car purchase or renovation, you choose yourself.
A co-borrower is a private person who is jointly and severally liable for a loan. This means that the payment obligation is shared with the borrower. One is the borrower and the other is a co-borrower. Having a co-borrower when applying for a loan increases the chances of finding a good loan at a low interest rate. Common examples of co-borrowers are usually a relative, a partner, a spouse or a parent, but it can also be a friend.
Since you are two people sharing the payment obligation
You are considered to have a lower risk of lending capital to. There are many reasons why some want a co-borrower when borrowing money. The most common reason is when you want to take out a mortgage. The Swedish housing market has very expensive prices and it can be difficult for a person to get a loan that covers a home purchase. When you use a co-borrower you can strengthen your repayment capacity and get a better credit rating.
It is difficult, especially for young individuals, to be able to measure the lenders’ requirements without a co-borrower. Having a co-borrower gives the bank extra security behind the loan. Since there are two individuals on the loan, the bank is more at risk of getting the money back. The house is also a form of security. In the worst case, the bank can repay the loan by selling the property with Kronofogden’s help.
A co-borrower has the same obligations as the borrower and is also liable for payment. You can also have a guarantor, which means that he is obliged to pay if the borrower is unable, unwilling or choosing to pay his debt. When you are two co-applicants you share the responsibility and it is usually better. Both individuals are on the loan in full for the entire loan amount. This unless otherwise specified in the loan agreement.
There is not really much difference between a guarantor and a co-borrower
The difference is that payment responsibility is transferred. A co-borrower is automatically obliged to pay back the loan. A guarantor, on the other hand, must take over the obligation and legal processes may be required to transfer the debt.
A detailed credit assessment is always made of the persons’ income and ability to pay before signing a loan agreement. The bank that lends money obviously wants back the borrowed money and therefore chooses people with good credit history and good income. By including a co-borrower, the bank’s risk of lending money is reduced. If you have a low income, probably a co-borrower might be a good idea to have.
It is always positive to have a co-borrower and it is the principal borrower that credit is assessed first. Then it is always good to have an extra person standing on the loan. Then the person who is the main applicant can share his payment responsibility. You have the opportunity to be offered a significantly lower interest rate when you apply for a loan with a co-borrower.
Mortgage Borrower – Obviously, there are very large benefits to having a borrower when applying for a mortgage. If you have two incomes, you have the opportunity to borrow more money. If you have a lower income than a co-borrower, your credit rating will improve. The bank will feel a much greater security if two people are on the loan.
Both people’s incomes will be taken into account when a credit assessment is made. It is usually a partner who stands as co-borrower in a mortgage. It also happens that a parent steps in as a co-borrower when the son or daughter wants to move away from home. Obviously it is an exciting thing to get a new apartment or villa and it is also a big responsibility. Everyone really benefits from two people sharing the loan.