Valentine’s Day: Mortgage: alone or as a couple? | be where you are

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In a shared mortgage, the two owners assume 100% of the responsibility for the debt, regardless of the money they each agree to contribute. In case of non-payment, both respond to the total amount owed with their present and future assets. A distribution that has nothing to do with the ownership of the property that may be the same or different, depending on what the parties establish.

If it is a marriage under community property, they have the possibility of going to the notary to agree who would keep the property in the event of death.

Espiago points out that, to formalize the mortgage loan as a couple, both must go in person to the bank and sign the pre-contractual documentation. You will also have to go to the notary on two occasions. The first to demonstrate through a questionnaire that they understand the conditions of the mortgage and sign the notarial deed, and the second for the notary to formalize the loan deed. The cost of this process is assumed by the bank.

In the case of dating couples, de facto couples or marriages with separation of property, it is possible, when registering the home in the Property Registry, to establish what percentage each one will have. Something that will be useful in the event of a breakup to know how much corresponds to each member of the couple. But this procedure is not related to the mortgage, since, if both sign it, both are responsible for the total debt, even if they pay the monthly payments in the proportion they agree on.

When contracting a mortgage with two holders, the professional advice from an expertsuch as that of the bank, helps, since it provides all the information about the mortgage loan and guides buyers during the process.

What to do if you decide to break the bond

If the couple ends their relationship, there are various solutions to manage the mortgage.

In the event of divorce, dissolution of a de facto couple or breakup of two people without legal ties, the most common ways to deal with the mortgage loan are two: that one of the spouses acquires part of the home of the other and assumes the payment of the mortgage that remains to be paid, or that the property is sold, the loan is settled and the money is distributed as agreed.

The second option is the most common, experts point out, since the first encounters the obstacle that the mortgage becomes in the name of a single owner and, therefore, must face a fee that was previously paid by two. Whoever keeps the house also buys his part from the other person, for which he may need another mortgage.

A possible alternative is the renegotiation with the bank to extend the return period and thus reduce the monthly fee to adapt it to the income of a single payer, although these procedures usually have a cost. If the couple does not want to sell the house, another solution is to rent the property and use that income to pay the mortgage.

In the event that one of the members, whether from a marriage under the regime of separation of property, a common-law couple or who are not married, had bought the home and signed the mortgage individually or before starting the relationship, both both the property and the loan will be yours upon separation. The other party would have no rights or responsibilities over them.

At this point, Espiago explains that the situation changes when there are children involved, regardless of the nature of the couple, since a judge can consider the habitual residence as the family home and dictate that the minors remain at home, which will force the parents to take turns, even if one of them is not the owner.

Calculator: find out what interests you more, whether the mortgage at a fixed rate or a variable rate.

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