Expert Answers: If my future spouse has a mortgage, will I automatically become a co-borrower?

The average age of people getting married, according to the data of the State Data Agency, is gradually increasing, so it is not uncommon for one of the future newlyweds to have already taken the first steps of independent life and purchased real estate with a mortgage. What happens to it after marriage, maybe both people automatically become joint debtors? Edvinas Jurevičius, Head of Retail Banking at Luminor bank, answers this question.

Each person’s financial obligations assumed before marriage remain their personal responsibility.

“In other words, if one of the spouses took out a home loan before marriage, the other spouse does not automatically become a co-borrower after marriage. The law ensures that personal obligations are not transferred to another without official legal processes,” the expert emphasizes.

On the other hand, it should be borne in mind that if spouses in such a situation decide to take out a new joint loan together, personal obligations would be included in the joint creditworthiness assessment. The regulations of responsible lending, which guide the granting of housing loans in Lithuania, indicate that all financial obligations of the family cannot amount to more than 40 percent. income received.

“Thus, even if the spouses do not become co-borrowers, the loan held by one of them may affect the amount the spouses will be able to borrow in the future,” says E. Jurevičius.

What to do for newlyweds who want to become co-borrowers

A housing loan agreement is no less official and regulated than, for example, an employment contract, so it is not possible to change it unilaterally. Newlyweds who want to share responsibility for a loan held by one of the spouses must be proactive and apply for changes to the contract themselves.

“The couple should approach the bank that granted the loan and submit an application expressing the loan holder’s request to include a co-borrower. The bank then evaluates the received information and decides whether both persons can be jointly responsible for the loan and the sustainable payment of the monthly installments,” says the expert.

In this case, just as when evaluating an application for a new home loan, the bank takes into account the sustainability of the income of both potential co-borrowers, credit history, the nature of the borrower’s work, specialization, etc., says E. Jurevičius.

Only after the bank evaluates the application submitted by the newlyweds and agrees to include a co-debtor, changes to the contract are made, which may be subject to additional charges.

About Luminor:

Luminor is the leading independent bank in the Baltic States and the third largest provider of financial services in the region. We serve the financial needs of individuals, families and businesses. Like our home markets – Estonia, Latvia and Lithuania – we are young, dynamic and forward-looking.