How to work around different deposits AND different mortgage payments?

krlyr

Been browsing through some threads but most of the situations with differing deposits have the buyers paying 50:50 on mortgage payments or set percentages that remain the same.
My boyfriend and I have made an offer on our first house and we're trying to decide the best way to proceed. We're putting in different deposits (my boyfriend had been saving for a house for a good few more years than me!) and while we'll split the basic mortgage 50:50, the plan is to overpay as much as we can to try to reduce the mortgage length and pay less interest overall. My boyfriend is on a higher wage than me and has less outgoings (company car, whereas I have to pay all the running costs on mine, and I pay for dog food & insurance as the dogs were here before the boyfriend and I feel they're my responsibility) so he will realistically be able to make larger overpayments than me - it seems silly for him to limit what he pays towards it for the sake of keeping things 50:50 but we're not quite sure how to work it in terms of what he would get back out of the house if we were to split (it sounds horrible to discuss but we're practical people - and with no intention to tie the knot it's something we need to get written up).
However, while he may be the one able to make greater overpayments at the moment, I may be in line for a payrise that could put my earnings above his and then I would be the one able to make greater payments - if this was guaranteed then we could just agree to match/balance out each other's payments, but it's not, so we're stuck on how to make sure we stay fair and we each get out a fair amount proportionate to what we put in. So while it may be 60:40, for example, for the first year, come my pay review next year it might shift to 40:60, or maybe just 50:50, or 45:55 - we're not sure how it'll work, and it may change more frequently than year-to-year even (we tend to get pay reviews at different times of the year).
The other threads have helped us with how the deposits would be returned but how do you keep track of varying mortgage payments? If it's a complex situation requiring some legal advice, who would be the best person for us to speak to, would it be something arranged with the solicitor we're using to buy the house or would it be arranged seperately to this as it's just an agreement between myself and my boyfriend?

Senior_Paper_Monitor

Primarily your solicitor (although some brokers/advisers are happy to go into some detail with you in terms of possible structures - it needs to be processed by a solicitor for many reasons) - the problem starts if you are using a lender subsidised 'conveyancing factory', although typically this will not be the case on a mortgage for a purchase.

In this case I would suggest you look for local solicitor, preferably by way of a family/friends introduction - costs (in addition to conveyancing) should not exceed £ 300 - 400 + VAT.

getmore4less

It is relatively easy to set up you just need to decide what you want
.
It is easer to manage the debt seperately from house ownership since you need to revalue regularly(every overpayment) if you don't.

With higher income and deposit it might be better to not pay the mortgage 50:50 since they will just end up reducing their 50% faster than you with overpayments and so the payments are no longer 50:50.

The evidence on here is many solicitors don't have a clue how to do this properly.


What I would do is estimate how much you can afford each and set up the owership and mortgage % to reflect this.

Fix the house ownership at that point, also capital investments into the house are done at the same %.

Then manage the debt with overpayments at the debt %.

If the income situations change then adjust the debt payments and leave the house ownship as is. If one can make bigger overpaments then the % of debt changes but ownerships doesn't, eventualy one will pay off their share of the debt before the other.

One way with differeing incomes is to use an offset where you keep your overpaymetns seperate. The realtionship subsidy is forgoing the interest on the offset savings.

have a look at the 3 people thread it covers a ot of the issues.