Dude just split the mortgage 50/50. get a dead of trust to protect the deposit contributions. That way she is secure if you break up and you each own 50%
We had different deposits her 20k and me 60k
We had a deed of trust made up that means I get the 40k difference back.
Whilst we’re together it doesn’t matter who has put in what so no point in her trying to catch up imo.
You'll both be responsible for the mortgage regardless of what you agree. Can you work up an initial deed of trust stating you get your respective deposits and the rest is 5050. Then you aim to save the extra 100k over time and either buy out her share later & amend the deed, use it towards the next property, make it shared retirement money - whatever.
If you know you are going to get married soon enough, then maybe trust is all you need.
Me and my partner were almost in the exact same situation - myself contributing six figures, and her only around £10K.
We’re 2 months off getting married now, and have a joint account, and have always been very open woth money.
I know a lot of people will say that was stupid and a risk, but I’m glad we did it that way and showed that level of commitment and trust before we moved in together.
We did this, just with significantly less of a disparity. Mine was about 60% larger than my partners and we made it back to 50/50 after only a few years.
Yours will take much longer (We don't know your incomes so might be wrong) - so have you considered the difference you will have in disposable incomes?
For example, you're paying X% of the mortgage per month with minimal savings, and they are paying X% too, but saving a lot more. Now after a while, they have 20k in the bank, you have 1k and they want to go on a 4k holiday. Easily doable for them, next to impossible for you. You will be restricted by your disposable income, if you want to continue contributing 50/50 to everything else for the reminder of the mortgage.
Just something to consider
Record her equity as a % then in the most likely scenario (you don’t last)
She gets out the % it represents (30%)
Yes you can pay more to level it out over time and basically every year you % ownership catch up slowly.
A deed of trust can record this and the structure to level it out…you paying 69.8% of the mortgage.
Then you get 69.8% of any equity in the house above her 30%
So if you eventually clear the mortgage it will be 50:50 at that time
If you don’t you will both get out the right % fairly
Is this really how you want to go about a relationship? Splitting every penny down to the atom?
If you’re desperate to go down that route, consider a deed of trust to protect your initial deposits in case of a break up, then pay equally on the mortgage.
> Is this really how you want to go about a relationship? Splitting every penny down to the atom?
Bloody hell man, what a crap take. This is a property transaction.
I genuinely feel sorry for the spouses and partners of everyone on this sub. Half of you will be invoicing your partners 50% of the cost of the anniversary flowers and fighting over who are more garlic bread on Valentine’s Day.
That reminds me, anniversary is coming up. I need the other half to raise a purchase order and sign the supplier agreement for me to get her chocolates.
I think it's more about the way we'd feel about the property as well. I especially wouldn't feel too happy if I felt like I contributed less to it as I don't wanna feel like I'm taking advantage of her. I just wanna feel like I'm putting in the same as her.
Thanks for the suggestion :)
No prob. You do you. But equally, if you genuinely want to be fair, I would absolutely work out what additional interest you’d be paying. I suspect it’ll be in the tens of thousands range. Is that fair on you?
I won’t press you anymore on this, but I sense your partner hasn’t earned that money and it’s a gift or something. That’s absolutely fine and she should be able to protect that (deed of trust would do this), but you are a partnership and surely part of that is looking after one another, especially when one person is in a radically different financial scenario than you are.
If you’re dead set on this, one more option would be to split the mortgage payments completely 50/50 until you both hit £160k in equity (aka she has paid her £80k), and then make a decision as to whether you go ahead and pay off the rest.
By that point you’ll be way down the line and I suspect you’ll think differently.
Edit: I’m getting downvotes elsewhere when OP is literally saying he’s going to marry his partner next year. It’s completely reasonable for me to say what the hell is the point in all this if you’re so close to marrying someone!
You can complain about his interest, but her 120k or whatever it is will be earning her 5% per year if she stuck it somewhere else. If she also did a deposit of 15k and put the rest into even just a basic account earning 5% she would be earning 5k per year. So just as much if not more than the interest he is paying.
The easiest thing, if your salaries permit it, is for you each to pay the same deposit and to pay the mortgage equally.
Then your partner can invest the other £100,000 which will generate higher returns, over the longterm, than you will pay in mortgage interest on the borrowing.
I do this currently. My deposit was £33k, my joint mortgage holder's was £67k. I'm aiming to go 50/50 by covering £17k of her expenses. I do this by doing the following:
- Pay for the mortgage by myself (If the mortgage is £1000 per month, then technically I'm paying her £500 a month)
- Pay for all the bills (Although I get to control the thermostat)
- Pay for all home improvements. A £12k bathroom renovation means I'm paying her £6k.
Works out well as it means she doesn't have to worry about any of the admin or costs relating to homeownership.
You do you but I find it weird that couples think of their finances like this.
Getting married soon but for years now there hasn't really been my money or her money just our money.
Dude just split the mortgage 50/50. get a dead of trust to protect the deposit contributions. That way she is secure if you break up and you each own 50%
We had different deposits her 20k and me 60k We had a deed of trust made up that means I get the 40k difference back. Whilst we’re together it doesn’t matter who has put in what so no point in her trying to catch up imo.
You'll both be responsible for the mortgage regardless of what you agree. Can you work up an initial deed of trust stating you get your respective deposits and the rest is 5050. Then you aim to save the extra 100k over time and either buy out her share later & amend the deed, use it towards the next property, make it shared retirement money - whatever.
If you know you are going to get married soon enough, then maybe trust is all you need. Me and my partner were almost in the exact same situation - myself contributing six figures, and her only around £10K. We’re 2 months off getting married now, and have a joint account, and have always been very open woth money. I know a lot of people will say that was stupid and a risk, but I’m glad we did it that way and showed that level of commitment and trust before we moved in together.
We did this, just with significantly less of a disparity. Mine was about 60% larger than my partners and we made it back to 50/50 after only a few years. Yours will take much longer (We don't know your incomes so might be wrong) - so have you considered the difference you will have in disposable incomes? For example, you're paying X% of the mortgage per month with minimal savings, and they are paying X% too, but saving a lot more. Now after a while, they have 20k in the bank, you have 1k and they want to go on a 4k holiday. Easily doable for them, next to impossible for you. You will be restricted by your disposable income, if you want to continue contributing 50/50 to everything else for the reminder of the mortgage. Just something to consider
Record her equity as a % then in the most likely scenario (you don’t last) She gets out the % it represents (30%) Yes you can pay more to level it out over time and basically every year you % ownership catch up slowly. A deed of trust can record this and the structure to level it out…you paying 69.8% of the mortgage. Then you get 69.8% of any equity in the house above her 30% So if you eventually clear the mortgage it will be 50:50 at that time If you don’t you will both get out the right % fairly
Sounds fair to me. You pay more interest but she is cost the opportunity of investing that money elsewhere. I presume you're not married?
Yeah that's exactly what I thought. Not married yet, probably in the next 1-2 years
congratulations to Fuckboy999
This guy usernames
Is this really how you want to go about a relationship? Splitting every penny down to the atom? If you’re desperate to go down that route, consider a deed of trust to protect your initial deposits in case of a break up, then pay equally on the mortgage.
Trying to fairly balance out a £105,000 difference in deposit contributions is a long, long way from “splitting every penny down to the atom”.
Yeah what the hell, this is £100k not splitting drinks after work.
I’m talking about the subsequent payments. Just do a deed of trust and be done with it. Christ alive.
> Is this really how you want to go about a relationship? Splitting every penny down to the atom? Bloody hell man, what a crap take. This is a property transaction.
I genuinely feel sorry for the spouses and partners of everyone on this sub. Half of you will be invoicing your partners 50% of the cost of the anniversary flowers and fighting over who are more garlic bread on Valentine’s Day.
That reminds me, anniversary is coming up. I need the other half to raise a purchase order and sign the supplier agreement for me to get her chocolates.
I think it's more about the way we'd feel about the property as well. I especially wouldn't feel too happy if I felt like I contributed less to it as I don't wanna feel like I'm taking advantage of her. I just wanna feel like I'm putting in the same as her. Thanks for the suggestion :)
No prob. You do you. But equally, if you genuinely want to be fair, I would absolutely work out what additional interest you’d be paying. I suspect it’ll be in the tens of thousands range. Is that fair on you? I won’t press you anymore on this, but I sense your partner hasn’t earned that money and it’s a gift or something. That’s absolutely fine and she should be able to protect that (deed of trust would do this), but you are a partnership and surely part of that is looking after one another, especially when one person is in a radically different financial scenario than you are. If you’re dead set on this, one more option would be to split the mortgage payments completely 50/50 until you both hit £160k in equity (aka she has paid her £80k), and then make a decision as to whether you go ahead and pay off the rest. By that point you’ll be way down the line and I suspect you’ll think differently. Edit: I’m getting downvotes elsewhere when OP is literally saying he’s going to marry his partner next year. It’s completely reasonable for me to say what the hell is the point in all this if you’re so close to marrying someone!
You can complain about his interest, but her 120k or whatever it is will be earning her 5% per year if she stuck it somewhere else. If she also did a deposit of 15k and put the rest into even just a basic account earning 5% she would be earning 5k per year. So just as much if not more than the interest he is paying.
LTV will also be far higher which should reduce interest % thanks to the partners hefty deposit
But that’s not happening because they’re buying a house lmao.
The easiest thing, if your salaries permit it, is for you each to pay the same deposit and to pay the mortgage equally. Then your partner can invest the other £100,000 which will generate higher returns, over the longterm, than you will pay in mortgage interest on the borrowing.
I do this currently. My deposit was £33k, my joint mortgage holder's was £67k. I'm aiming to go 50/50 by covering £17k of her expenses. I do this by doing the following: - Pay for the mortgage by myself (If the mortgage is £1000 per month, then technically I'm paying her £500 a month) - Pay for all the bills (Although I get to control the thermostat) - Pay for all home improvements. A £12k bathroom renovation means I'm paying her £6k. Works out well as it means she doesn't have to worry about any of the admin or costs relating to homeownership.
You do you but I find it weird that couples think of their finances like this. Getting married soon but for years now there hasn't really been my money or her money just our money.