Discussion
Hello
I’m looking for some advice on buying a home with my partner.
My partner will have a minimum 10% deposit towards a house worth £130,000, I however will have a larger deposit.
I wanted to keep things simple and both of us have a 50:50 deposit towards the house as all I’m planning on doing is sticking it in a high interest Isa.
Now I know that you can get a deed of trust written by a solicitor if I was to put in a higher deposit. Ideally to save complicating things regarding both of us putting in different amounts towards the mortgage as I’m putting in a higher deposit and also when the mortgage is paid off, my money is locked unless I sell. Is it best to put in the same amount as really once the mortgage has been paid, I’m left no better off except a higher percentage of that money is mine.
The only negative to this that I can think of, off the top of my head is I will be giving the bank a lot more interest over the years as it will take me longer to pay the mortgage off even though I have money sat in a savings account.
Thank you in advance
I’m looking for some advice on buying a home with my partner.
My partner will have a minimum 10% deposit towards a house worth £130,000, I however will have a larger deposit.
I wanted to keep things simple and both of us have a 50:50 deposit towards the house as all I’m planning on doing is sticking it in a high interest Isa.
Now I know that you can get a deed of trust written by a solicitor if I was to put in a higher deposit. Ideally to save complicating things regarding both of us putting in different amounts towards the mortgage as I’m putting in a higher deposit and also when the mortgage is paid off, my money is locked unless I sell. Is it best to put in the same amount as really once the mortgage has been paid, I’m left no better off except a higher percentage of that money is mine.
The only negative to this that I can think of, off the top of my head is I will be giving the bank a lot more interest over the years as it will take me longer to pay the mortgage off even though I have money sat in a savings account.
Thank you in advance
So, if I'm understanding this right:
House is £130k, your partner has £13k to put down
You have more than £13k to put down but don't want to put more than your partner in for equal equity reasons
Likewise the mortgage, you want to split that evenly too?
How much more deposit do you have than your partner? If it's a couple of grand, then use it for furnishing fund.
If it's significantly more then put it into the house and either get a solicitor to draw up an agreement, charge your partner rent in accordance with your share or have her pay more of the mortgage.
House is £130k, your partner has £13k to put down
You have more than £13k to put down but don't want to put more than your partner in for equal equity reasons
Likewise the mortgage, you want to split that evenly too?
How much more deposit do you have than your partner? If it's a couple of grand, then use it for furnishing fund.
If it's significantly more then put it into the house and either get a solicitor to draw up an agreement, charge your partner rent in accordance with your share or have her pay more of the mortgage.
Muzzer79 said:
So, if I'm understanding this right:
House is £130k, your partner has £13k to put down
You have more than £13k to put down but don't want to put more than your partner in for equal equity reasons
Likewise the mortgage, you want to split that evenly too?
How much more deposit do you have than your partner? If it's a couple of grand, then use it for furnishing fund.
If it's significantly more then put it into the house and either get a solicitor to draw up an agreement, charge your partner rent in accordance with your share or have her pay more of the mortgage.
Hello and thank you for replying.House is £130k, your partner has £13k to put down
You have more than £13k to put down but don't want to put more than your partner in for equal equity reasons
Likewise the mortgage, you want to split that evenly too?
How much more deposit do you have than your partner? If it's a couple of grand, then use it for furnishing fund.
If it's significantly more then put it into the house and either get a solicitor to draw up an agreement, charge your partner rent in accordance with your share or have her pay more of the mortgage.
Sorry, my partner would be putting in about £13000, maybe less and I would be putting in about £40000. I'm not very good with maths so would not know how much extra to charge my partner.
The other issue is that she is on a much lower wage but then I suppose if we were going to 50:50 everything if there were equal deposits then she would probably be paying the same if i was to put more into a deposit but it would be going into my pocket meaning I would naturally pay less.
I also get nervous about relying on a piece of paper for such a large amount. I'm sure you will agree that it's more beneficial to put my money into the house. Other disadvantage is its less difficult for me to get hold of the money should I need to.
Callismichael said:
Muzzer79 said:
So, if I'm understanding this right:
House is £130k, your partner has £13k to put down
You have more than £13k to put down but don't want to put more than your partner in for equal equity reasons
Likewise the mortgage, you want to split that evenly too?
How much more deposit do you have than your partner? If it's a couple of grand, then use it for furnishing fund.
If it's significantly more then put it into the house and either get a solicitor to draw up an agreement, charge your partner rent in accordance with your share or have her pay more of the mortgage.
Hello and thank you for replying.House is £130k, your partner has £13k to put down
You have more than £13k to put down but don't want to put more than your partner in for equal equity reasons
Likewise the mortgage, you want to split that evenly too?
How much more deposit do you have than your partner? If it's a couple of grand, then use it for furnishing fund.
If it's significantly more then put it into the house and either get a solicitor to draw up an agreement, charge your partner rent in accordance with your share or have her pay more of the mortgage.
Sorry, my partner would be putting in about £13000, maybe less and I would be putting in about £40000. I'm not very good with maths so would not know how much extra to charge my partner.
The other issue is that she is on a much lower wage but then I suppose if we were going to 50:50 everything if there were equal deposits then she would probably be paying the same if i was to put more into a deposit but it would be going into my pocket meaning I would naturally pay less.
I also get nervous about relying on a piece of paper for such a large amount. I'm sure you will agree that it's more beneficial to put my money into the house. Other disadvantage is its less difficult for me to get hold of the money should I need to.
Is it a case of you being cautious in case you split up or....?
If you earn considerably more than she does, have more cash as a deposit and are not married either:
a) have an legal agreement drawn up dividing the equity in the house and the subsequent mortgage payments.
b) buy the house on your own and have your partner pay you rent to cover her living there. You have 30% deposit on your own, so this shouldn't be a problem. Use a rent book to record the rent she pays you. Set the rent at whatever amount you need or see fit to charge.
c) Trust her implicitly and buy the house jointly, despite you putting more in. Frowned upon in PH-land.
Why would you need to access the money?
You're either buying a house or you're not. One should always have a relatively proportioned emergency-fund if possible but if you're truly worried you'll need money quickly, set some more aside.
Budget for accordingly lower interest rate/longer term/higher mortgage payments accordingly however.
Having numbers to look at in a bank account "just in case" can be an expensive business.
Muzzer79 said:
Why would you not just put your £40k in and have your partner put her £13k in?
Is it a case of you being cautious in case you split up or....?
If you earn considerably more than she does, have more cash as a deposit and are not married either:
a) have an legal agreement drawn up dividing the equity in the house and the subsequent mortgage payments.
b) buy the house on your own and have your partner pay you rent to cover her living there. You have 30% deposit on your own, so this shouldn't be a problem. Use a rent book to record the rent she pays you. Set the rent at whatever amount you need or see fit to charge.
c) Trust her implicitly and buy the house jointly, despite you putting more in. Frowned upon in PH-land.
Why would you need to access the money?
You're either buying a house or you're not. One should always have a relatively proportioned emergency-fund if possible but if you're truly worried you'll need money quickly, set some more aside.
Budget for accordingly lower interest rate/longer term/higher mortgage payments accordingly however.
Having numbers to look at in a bank account "just in case" can be an expensive business.
Yes im being cautious really. I was in a long term relationship and my ex put in more than me but she will get her money back, however im just protecting whats mine just in case. Is it a case of you being cautious in case you split up or....?
If you earn considerably more than she does, have more cash as a deposit and are not married either:
a) have an legal agreement drawn up dividing the equity in the house and the subsequent mortgage payments.
b) buy the house on your own and have your partner pay you rent to cover her living there. You have 30% deposit on your own, so this shouldn't be a problem. Use a rent book to record the rent she pays you. Set the rent at whatever amount you need or see fit to charge.
c) Trust her implicitly and buy the house jointly, despite you putting more in. Frowned upon in PH-land.
Why would you need to access the money?
You're either buying a house or you're not. One should always have a relatively proportioned emergency-fund if possible but if you're truly worried you'll need money quickly, set some more aside.
Budget for accordingly lower interest rate/longer term/higher mortgage payments accordingly however.
Having numbers to look at in a bank account "just in case" can be an expensive business.
is there complications if we opt for tenants in common and do a deed of trust? i'm willing to put in more but just protect my money so if i opt for 50:50 ownership can i still get a deed of trust or would i need to opt for Tenants in common?
I am planning on marriage and kids with this girl but i am an over cautious type of person as i've worked hard for my money.
Callismichael said:
Yes im being cautious really. I was in a long term relationship and my ex put in more than me but she will get her money back, however im just protecting whats mine just in case.
is there complications if we opt for tenants in common and do a deed of trust? i'm willing to put in more but just protect my money so if i opt for 50:50 ownership can i still get a deed of trust or would i need to opt for Tenants in common?
I am planning on marriage and kids with this girl but i am an over cautious type of person as i've worked hard for my money.
If you're planning on marriage and kids, just buy the house yourself if you're worried about the security of your money and have her top you up with rent if required.is there complications if we opt for tenants in common and do a deed of trust? i'm willing to put in more but just protect my money so if i opt for 50:50 ownership can i still get a deed of trust or would i need to opt for Tenants in common?
I am planning on marriage and kids with this girl but i am an over cautious type of person as i've worked hard for my money.
Then, if the relationship fails, you have the house in your name.
If you marry her and have kids, the house will be as good as hers regardless if you split up so I wouldn't bother with deeds of trust, etc!
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