When applying for a mortgage at a young age, where we do not earn enough to apply for our own apartment, there is a situation where parents can help us. This situation often appears in a few cases and most often when there is a lack of capacity for a specific loan.
A parent with a good credit history and ability is able to help, and the apartment can be owned only by young people through relevant entries in the Notarial Deed.
Can parents improve mortgage capacity?
But definitely not in every case, parents will help. We must be aware that the term guarantor has disappeared nowadays because such a person joins the applicant with the debt. Hence, it is also responsible for the outstanding loan with your assets.
However, if we have no choice, then joining a parent or parents is a very good idea. If the parents have property separation, they do not have to take a loan together, but if there is no such document then they both become co-borrowers. In order for parents to help increase their ability, we need to check a few things and first of all, it is net earnings and then credit obligations because everyone applying for a loan will be checked in Credit Checker.
People with a good credit history have nothing to worry about because it will only have a positive impact on the assessment by the bank analyst.
Given the parents’ earnings and burden, we must take into account that they will constitute a separate household, and therefore the funds allocated for household maintenance will be calculated differently and may be higher than if it were a single household with 4 people.
What maximum period can we apply with parents for a mortgage?
Here there are usually 2 situations and the first is that the bank will grant a loan only up to a specific maximum age of the oldest borrower and depending on the bank it is usually 70-80 years. Of course, there are banks where it is different and, for example, in Good Credit, the bank allowed to accept the maximum loan period specified on the basis of a younger person.
This was often used for loans with funding because parents could help their children with the ability rather than limit their maximum age. Good Finance does not have a specific maximum age, therefore only the analyst decides for which period he will grant the loan, therefore it is worth submitting an application there.
What is cheap if I do not pay back the housing loan taken with my parents?
The process is exactly the same as in the case of applying for a loan yourself, i.e. the bank can claim its receivables from the assets of young people and parents.