What is a co-borrower?
What does it mean to be a co-borrower?
A co-borrower is liable together with and on an equal footing with the main borrower. Both the main borrower and co-borrower are responsible, individually, to the bank for the loan to be paid.
What is the difference between being the main borrower and co-borrower?
The main borrower is the person who is number 1 on the loan. When it is a loan that cohabitants or spouses have together, it is often the person with the highest income that is number 1. The person who stands as number 2 is a co-borrower. In cases where one party is under 34, while the other is over 34, it is beneficial for the youngest to be number 1. Then the whole loan will be able to get good interest with a YOUNG MORTGAGE LOAN .
When you are single or as a couple you do not have enough income to get the mortgage you need, for example parents can be co-borrowers. If you also do not have enough saved equity, you will also need a mortgage. It is possible to be both. A co-borrower is thus jointly and severally liable for the loan, while a guarantor is only liable after repeated attempts have been made to obtain settlement from the borrowers.