Joint mortgage but different repayment rates

GrandmasterG_2

Hello all
I hope that somebody can offer a solution/suggestion to this scenario

Myself and my partner are currently looking to buy a property together. She's a first time buyer but I currently own a flat with around £50k left on the mortage.

We'd both be putting in an equal share and would need to borrow around £100k in total i.e. £50k each, so my share of the debt would be around the same as currently

Seems quite simple except that I have been making a concerted effort to pay off my mortage quickly and it should be be paid off in 5 years.

If my partner is unable to pay her share at the same rate then are any established scenarios where we can take out a mortgage(I understand that 2 separate mortgages on the same property is a no no) but repay our share of the debt at different rates?

I'm quite looking forward to the extra monthly income once my current deal is paid off so I'd be interested in ways of avoiding being tied into a 10 year deal if there's a way of avoiding it.

I realise that even if I pay off my share then the property will still remain mortgaged, with all the implications that that involves, I'm just looking for a way to get my share of the debt out of the way as soon as possible

Is it just a case of getting out the calculator and doing some maths to work out the contributions?

Thank you

TrickyDicky101

Hi

You could do this in quite a starightforward manner if you choose an offset mortgage as you can pay your 'overpayments' into the offsetting account until you have reached X amount, and then repayments will be down to your partner (assuming you trust each other not to stop repaying/skim the offset account).

casper_g

TrickyDicky101 wrote: »

Hi

You could do this in quite a starightforward manner if you choose an offset mortgage as you can pay your 'overpayments' into the offsetting account until you have reached X amount, and then repayments will be down to your partner (assuming you trust each other not to stop repaying/skim the offset account).

This might well be the best solution in practice. You won't be able to agree anything specific with the lender on this in advance, as they won't want to assign parts of the debt to each of you, IYSWIM. They want both of you to be resposible for the whole debt, so that if it comes to taking legal action to recover the debt (e.g. if they's repossessed the house and there is still money outstanding) they can come after whichever of you looks the most likely prospect!

GrandmasterG_2

Thanks both for the opinions. Seems like offsetting could be a way around it.

I understand that I'd still be legally responsible for 100% of the debt even after I've paid off my half. That's just a risk I'll have to take

Sounds like there's no official solution you can take out with a lender and that it's more a case of coming to a gentlemans (or womans!) agreement between ourselves

Thanks for the info

hillcats

Very strange arrangement if you dont mind me saying so.
We have a joint mortgage but SWMBO only works PT so earns less and has to look after the sprogs more often than I actually do due to working shifts, so although her income is less her workload (in and around the home) is certainly higher than mine.
Why not just treat it as a joint debt and pay it off together ?

getmore4less

At least two(Barclays,YBS) of the offset lenders allow the offset accounts to be in single names so you protect your pot of cash even keep saving in it to reduce costs even more. on split/sale you get your cash back and split as if you had paid the same each

Also the OH cannot raid your savings

We did this with our mortgage initialy and we ignored the effect of the offset just kept paying the same actual mortgage payment(1/2 each).

In effect the person with the larger offset pot was subbing the other but not with capital just interest.

TighterThanTwoCoatsOfPain

Hmmmm no offence, but you shouldnt be buying together! Of all the weird set ups Ive read about, paying "your part" off quicker so YOU can enjoy your extra cash?

pinkteapot

TighterThanTwoCoatsOfPain wrote: »

Hmmmm no offence, but you shouldnt be buying together! Of all the weird set ups Ive read about, paying "your part" off quicker so YOU can enjoy your extra cash?

Agree - very strange attitude. Will you be going on luxury holidays alone when your partner can't afford their half of the bill because they are still paying "their" mortgage?

GrandmasterG_2

TighterThanTwoCoatsOfPain wrote: »

Hmmmm no offence, but you shouldnt be buying together! Of all the weird set ups Ive read about, paying "your part" off quicker so YOU can enjoy your extra cash?

pinkteapot wrote: »

Agree - very strange attitude. Will you be going on luxury holidays alone when your partner can't afford their half of the bill because they are still paying "their" mortgage?

I guess it's very easy to be flippant on the internet, especially when you don't know anythng about me :huh:

As you find my question so hard to comprehend then perhaps I can paint a different picture.

Consider a situation where 2 people decide to go 50/50 on a house. One has sufficient equity to not require a loan, the other needs to borrow £50k.

This is not an unheard of arrangement, let's call it scenario a)

Then consider my point in post 1, lets call that scenario b)

The only difference between scenario a) and scenario b) is the concept of time. Scenario a) is happening right now and scenario b) is predicted for 5 years time.

So if scenario a) is considered acceptable then why is person in scenario b) selfish with their own cash and inclined to swan off alone on luxury holidays by themselves, presumably laughing on the beach while "their partner can't afford their half of the bill"??

If the only difference is time then why is one situation acceptable and the other wholly repugnant?

Or do you think that any situation where one person has to borrow to afford a property and the other does not is unacceptable?

And do you suppose that in either situation if the person paying the bank gets into difficulties that the other one will just say "Not my problem" before heading off to the airport in their Ferrari, paid for with their ill gotten pile of cash?

Thanks to those that took the time to give advice:beer:

JQ.

I'd save yourself the heartache and split up now.