Joint Mortgage but differing monthly repayments

HHarry

MB,

Could you save your overpayments into one of the high interest current accounts, and then pay a lump sum when you've saved half of the outstanding mortgage amount?

getmore4less

And a simple one is a waste of money because it won't cover the cases that cause problems.

getmore4less

Most if not all lenders have the ability to operate sub accounts.

It won't change the liability but it may be worth asking if they can do this for you, that way you would not have to model you just each pay one of the sub accounts and the lender will track for you.

getmore4less

One thing you might want to consider is insuring each others lives so you can buy out the estate on death of one of you, insure enough to buy out not just cover the mortgage.

MB330

Thank you all for your helpful responses.

Just to cover off a few points:

- We've paid quite an expensive (and reputable) solicitor to deal with the trust deed for us and he will cater for our requirements. I may indeed post the final draft if anyone is interested.

- We've both got life insurance policies which cover our halves + a bit.

- The mortgage liability will be joint, but ownership will be under the condition stated in the trust deed. Meaning if we disagree, the legal charge will protect us both (in worst case). This also will include a mortgage overpayment clause.

- If I save, rather than overpay, my concern is that I won't be in an anywhere near as good position. Loading up MSE's overpayment calculator shows the amount of interest saved is massive when overpaying given interest is compounded monthly. It's also always going to be a higher interest rate than a savings account. (I wonder if anyone knows of a calculator that can compare these two things? saving vs. overpaying)

- I haven't heard about mortgage sub-accounts, but will look into it now!

MB330

getmore4less wrote: »

To explain further to model with the calculator.

You can ignore the term and just use the payments made.

To start with set up 2 loans 1/2 each enter the interest rate and the payment(interest only) hit calculate then details

That will show you the amounts owing month by month.
For a lump sum overpayment you just adjust the amount owing on that loan and start again.

Regular overpayments you just stick the total payment on each loan.

This will work even if you each do overpayments of different sizes.

The more times you change the payments or do lump sums the more work you need to do.

A simple table with 12 entries a year will be all you need if you want to track manualy

You may find that locoblades spreadsheet may already have this sort of thing built in or might be a good start for building one.

The trick is you don't need to work out the payment split accurately just what you each pay as long as it is more than the contractual payment and under any penalty amount it just works using the calculators to track each persons payments.

I've tried this approach, the only issue is, let's say we're 10 months in and have been paying 50/50. Then I decide to overpay, so I re-run the calculator with the new outstanding loan amount. However, now it's started at the full mortgage term again rather than the term minus 10 months. I guess I need a mortgage calculator that allows me to specify term length in months...

getmore4less

You can ignore the term once you get going the payments determines the progress of the mortgage.

The lender will take what they want and you can work out the split easily enough once you know what they take.

You could ask them to leave the payment the same after overpayments.