Co-borrower
A person who borrows jointly with another and is jointly and severally liable for repaying the loan. Each co-borrower's income and charges enter the analysis, which often raises borrowing capacity. In return, each remains liable for the whole debt if the other defaults.
Key points
- Person jointly and severally bound to repay the loan alongside the main borrower.
- Their income is added to the principal's, raising the household borrowing capacity.
- Their joint liability means they can be pursued alone for the entire debt.
- A co-borrower need not be a co-buyer of the property, depending on family arrangements.
Frequently asked questions
What is the difference between a co-borrower and a guarantor?
The co-borrower is party to the loan contract from the outset and their income is directly used to justify repayment capacity. The guarantor only steps in as a backstop if the main borrower defaults, they are not necessarily reflected in the initial debt-ratio calculation. The tax and asset consequences also differ.
Can a co-borrower be removed during the loan term?
Yes, but it requires a contractual amendment and the bank's agreement. The bank will reassess the remaining borrower's creditworthiness alone; if their income is insufficient, the request can be refused or made subject to additional security. This situation frequently arises during a divorce.
How is the co-borrower treated on the borrower insurance side?
Each co-borrower must be insured, and the allocation of cover shares (e.g. 70% / 30%) defines the share of capital covered if one of them has a claim. The broker must ensure the total shares reach at least 100% and adapt the coverage to each person's respective income.
In practice
A couple wishing to borrow €350,000 does not meet the debt ratio threshold on a single salary; by including the partner's income as co-borrower, the debt ratio drops from 41% to 28% and the file becomes eligible for financing.
Official sources
- Co-borrower guarantee: divorce or separation · Service-Public.gouv.fr
- Obtaining a mortgage loan · Service-Public.gouv.fr
- Mortgage credit (official guide) · Service-Public.gouv.fr