Co-borrower agreement

This becomes particularly relevant when the borrowers are jointly and severally liable towards the lender but wish to allocate the responsibility differently between themselves. For example, this may involve a situation where a parent is jointly liable for a child’s mortgage loan, while the parent and child wish to agree that the child will be responsible for all monthly costs relating to the loan.

In this agreement, the parties can clearly specify how they will jointly manage the loan and its repayment. This may include the allocation of monthly payments, responsibility for any delays or interest costs, as well as other relevant aspects that the parties consider important.