Keeping GF off mortgage?

lol_omg_wtf

Quick run down of our situation.
Been together 6.5 years.
We are 24 years old and living with our own parents respectively.
Time to get a house together! We have not wanted to rent, she was living in uni accommodation for some of this time.

I have suggested that as we have never lived with each other i should get a mortgage in just my name. I will put down the deposit and pay the full mortgage for the initia 2/3 year term.
We will split all other bills and living costs equally.
Then she can add her deposit if we decide it works after initial term.

I have suggested this as if for whatever reason we find we cant live together, she can just walk away and go back to her parents with no real financial complications of me buying her out etc. etc.

will add some numbers to the situation as this may clear up some questions.

GF - anual salary £14k no overtime, 10k savings
Myself - £31k with £20k overtime, 22k savings will be more like 30k when we buy next year.

Looking at houses for 160-180k with a 10-15% deposit.
I have had a morgage promise from halifax in my name allowing me up to 211k.

What do you guys think? Is it a fair reasonable way to go about it?
Mainly have i overlooked anything, as im doing this to try ensure we dont get into a financial mess should we split?

Looking forward to your wisdom guys many thanks!

Thrugelmir

If your aim is buy a £180k property. Then perhaps better to consider a joint purchase. Easy enough to establish an agreement as to how the equity in the property is shared from the outset. You'll always have the option to buy your partner out at a later date.

lol_omg_wtf

Thanks for the speedy reply, If we move in argue for six month and she decides to go back to parents and we have a joint mortgage i thought that this could be costly?

Obviously her deposit would need to be pulled out of the value of the property to give it back to her.

We would have to cancel the mortgage and i would have to re-apply just in my name? I was thinking this could open all sorts of cans of worms?

In reality is it diffrent? Would the bank be happy just to take her off the mortgage add say £10-15k to my morgage so her deposit can be paid back?

fairy_lights

If you have concerns about whether it will work out living together I would seriously consider renting for a while before buying. If you can pool deposits and apply for a mortgage together you'll be in a much better position than if you go it alone.
How does your girlfriend feel about your plan?

lol_omg_wtf

I was clear with her when i suggested doing it, i didnt want to make it about just looking after my interests. This gives her the chance to keep her savings safe and live rent free with me.
I want it to be fair! Im happy that if it works for the initial period to let her throw her lot in and then whats mine is hers etc. etc.

We have talked it over and feel it is fair, as im not expecting her to pay any fees, deposit or morgage payments. Just for 50% for food, electric, tv etc.

Renting is a option but feels like its just a futile exercise in throwing away money. I have always had the opinion i would never rent. Fortunatly never been in the position were i have needed to either.

Might as well be paying a mortgage for 2 years instead of renting?
We do want to get on the property ladder!

Thank you for the input as its nice to just throw out whats going on in my head and get other peoples responses!

lol_omg_wtf

@fairy i understand that if i had her deposit from the start that would equate to us putting down a 20% deposit instead of the 15%. Meaning a better rate that eqates to about £1700 pound saving over a 2 year fixed term. Im willing to stomach that cost for our 2 year trial period. Or we could rent for 3 month for that cost?
Thanks again any input is appreciated as im still very fresh and most likley neive to all this.

Thrugelmir

lol_omg_!!!!!! wrote: »

Thanks for the speedy reply, If we move in argue for six month and she decides to go back to parents and we have a joint mortgage i thought that this could be costly?

If you've known each other for a long time yet still have uncertainties. Perhaps hold back from buying for a while longer. Rent for a trial period. Then there's nothing lost. Alternatively stay as you are and continue to save for a larger deposit.

Armorica

To have uncertainties after 6.5 years together is still a bit odd....was it long distance relationship due to uni for a lot of the time together too?

Given the massive difference in salaries - notwithstanding that you both have good savings - the 50% split of living costs could cause problems (especially if you live in one of the more expensive areas of the country).

duchy

I think you'll be fortunate if she still wants to live with you -or even continue with the relationship.

You sound very uncommitted to her and no doubt her friends and family will think that after so long together that you want to avoid a partnership with her and want her to move in with lodger status (and realistically you could kick her out at any time). They are probably telling her not to do it. If you were a new couple your stance might be more understandable but after six and a half years together -it appears you don't see your relationship as a partnership and you just want a lodger with benefits to share the bills.

If she was my daughter I'd be suggesting she didn't do it -she could invest time and money on the property- decorating, helping buy furniture , bedding, curtains etc and you could dump her at any time and kick her out and she'd have nothing to show for her efforts and expense. Either you want your relationship to progress and moving in together as partners is the next step .....or you aren't ready for that step -in which case buy the place alone and she can continue to live at home until she either buys her own place or moves in with a proper legal agreement and "buys in" financially to your property. (You could get a proper lodger to help out with bills in the meantime).
If you genuinely aren't ready yo commit to her - then it wouldn't be fair to expect her to help with buying furniture etc- and there is also the possibility that even if she chooses to buy in later that in both your heads it is not a joint property as it was yours alone first. You may need to move again to make it feel like a joint "yours"

Renting for six months makes much more sense -You can learn together how to share your lives and work out if you are compatible -and how the differing income can be handled by you both. If it works out - buy together-if it doesn't -don't. In the long run it's the cheaper option as you have such doubts about her (or maybe they are about yourself) .

You do come across a bit immature in your thinking (as well as your user name) maybe waiting would be better for you both.

duchy

Practicalities

No it wouldn't just be a case of you returning her deposit- if prices rise she's entitled to a share of the equity too.

Why would reapplying for a single mortgage "open a can of worms" if Halifax have already agreed a single income mortgage of up to 211K ? Did you include her in the affordability calcs paying half the bills or something ?

By the time you've drawn up agreements and paid arrangement fees it will be cheaper to rent and see if you argue for six months or not (Why do you think you will- do you already argue a lot?)

Maybe you need to decide how much of buying a house is because you want to move out from home.....and how much is about starting a life with your girlfriend....Do you see marriage, babies etc in your future together ....or is it not that serious ?

If it is more about independence and that you feel it is time to stop living at home- rather than time to progress your relationship -Maybe buying and renting the spare room out to a mate as a lodger is the better option for now. You honestly aren't coming across as wanting to live with her at this point but more you feel you should be getting on the property ladder. It's great if wanting those two things come at the same time ......but if you aren't ready for both-ithen don't do it -or make promises to do it later. If you go into living with her "expecting" her to be running home in six months- she probably will . You are setting up a self fufilling prophecy. It's is hard living as a couple for the first time - there is a period of adjustment - and you need to go into it expecting it to work and wanting it to work ....rather than saying "She can always run home" anytime it gets difficult.

With renting for six months on a joint tenancy then you'd both have to work stuff out as you'd both be on the contract so if you spend the first three months arguing - and then everything is fine once you've adjusted then you know it can work. Really this is one of the times renting is actually a wise investment (and if you rent furnished you can still save for furniture for the house you buy later whilst renting)

lol_omg_!!!!!! wrote: »

Thanks for the speedy reply, If we move in argue for six month and she decides to go back to parents and we have a joint mortgage i thought that this could be costly?

Obviously her deposit would need to be pulled out of the value of the property to give it back to her.

We would have to cancel the mortgage and i would have to re-apply just in my name? I was thinking this could open all sorts of cans of worms?

In reality is it diffrent? Would the bank be happy just to take her off the mortgage add say £10-15k to my morgage so her deposit can be paid back?

ACG

I think I differ to most replies on here.

I did something similar with my girlfriend. There is a difference to not being committed and being pragmatic.

If your both sensible enough to have the conversation and be adults about the why your having the conversation there should be no issues. Like you say it gives you both the option of walking away without reason to get into arguments about who owns what and refusing to come off the mortgage or selling the property (as we see on these forums all the time). In 2 years if all is well then you crack on with it, add the mrs and everyone is happy.

If more people thought about these things rather than having kids, getting married, buying a house and then realising one or the other is not what they thought im sure we would have a lot less posts along the lines of "he/she refuses to sell/move out/pay their share of the mortgage" etc etc.