Overpaying "your half" of the mortgage

Accountant_for_my_sins

My husband and I keep our finances largely seperate, so we have our own current and savings accounts etc and split bills 50:50 that come out of a joint account that we pay the same amout into every month.


I have built up enough savings to pay off "my half" of the morgage, so the scenario would be I pay off half the mortgage, thus being able to save the amount I normally pay off every month and my husband benefits from incurring interest on a lower mortgage amount. I would look to get my name removed from the mortgage, but obviously remain on the home ownership deeds.


My question is: are there any downsides to doing this? I guess it would all work as long as we stay together, but if we were to split up (I have no intention of leaving him and have no indication that he is planning to leave me) but would this leave me in a disadvantaged position if it were to happen? I'm thinking as we're married all debts are seen as equally shared?


Any advice would be gratefully appreciated as it seems a sensible thing to do, but I think it would be best to know worst case scenario before I part with thousands of pounds of hard earned cash!


Thanks

moneyfacts

Can't you both work together to clear your joint mortgage so you can both go on to enjoy life, together?

armchairexpert

If you were to split, the equity in the house would be equally split between you (roughly speaking: children etc affect this, but as a ballpark) and that division wouldn't take into account the fact that the larger repayments came from 'your' account. Taking your name off the mortgage would involve remortgaging, I think, which attracts fees and paperwork - something you just wear if you've actually split, but I'd have thought a lot of effort in your scenario.

Would paying off your half mean that your monthly commitments are a lot less? I.e., your husband's wage would still go towards his half of the shared bills and also his half of the mortgage, but you'd have a lot more left over at the end of the month? I don't really understand how couples work if they've got radically different amounts of spending money at the end of the day.

I think in your case, assuming that your mortgage payments aren't crippling you - and they're clearly not, if you've saved that much - I'd put your savings towards an investment vehicle instead. A BTL or shares or whatever you're comfortable with. That way you're mortgage neutral so if you did split, you have the option to immediately pay off your half of the remaining mortgage but in the meantime your savings are earning money for you.

Darpett

I would echo the above posters concern that if you were to do that and things did not go as planned in the future your husband would potentially benefit to your cost unless you had a more formal legal arrangement.

Also paying off a lump sum may incur charges.

If you are looking for technical advice on what legal protection you may need to consider to make sure that money would remain your asset if in the future things change with your relationship you may find it more helpful to ask the question on the Mortgages and Endowments board where people are more likely to be looking for solutions to less common situations regarding mortgages.

Ronaldo_Mconaldo

Sounds like a great marriage, this. Why not charge him rent for using your half of the house or draw a line down the middle and charge him if he crosses over it. Do what you said and I'd imagine your marriage will be a lot closer to being over than you first thought.

edinburgher

While OP's financial arrangements might not be to all of our tastes, can we be a little more respectful instead of taking the Mick?

Plenty of couples keep their finances distinct from their partners, there is no right or wrong way to run a home

Mojisola

Accountant_for_my_sins wrote: »

My husband and I keep our finances largely seperate

edinburgher wrote: »

Plenty of couples keep their finances distinct from their partners, there is no right or wrong way to run a home

Couples make different arrangements to suit themselves but, if you are married, the law over-rides any personal arrangements in the case of a divorce. It can come as a shock that 'my savings' are suddenly viewed as 'marital assets' and open to be shared 50/50.

gingercordial

Mojisola wrote: »

Couples make different arrangements to suit themselves but, if you are married, the law over-rides any personal arrangements in the case of a divorce. It can come as a shock that 'my savings' are suddenly viewed as 'marital assets' and open to be shared 50/50.

Indeed. My ex-husband and I had entirely separate finances, would pay each other back for things, take turns (or split the bill) for dinners out. I earned a lot more than him - though should point out it was him who didn't want joint finances! - and therefore could save a lot more than him each month.

When we divorced I agreed it was fair that he should have 50% of "my" savings because really it was all one marital pot regardless of how we'd chosen to run things.

Sea_Shell

"All that i have i share with you"... I'm sure I've heard that somewhere.

Mojisola

Sea_Shell wrote: »

"All that i have i share with you"... I'm sure I've heard that somewhere.

The only wording that's necessary for a legal marriage is -
I declare that I know of no legal reason why I (your name) may not be joined in marriage to (your partner's name).
and
I (your full name), take you (your partner's full name) to be my wedded wife/husband.
(Minor variations are allowable)

edinburgher

Mojisola wrote: »

Couples make different arrangements to suit themselves but, if you are married, the law over-rides any personal arrangements in the case of a divorce. It can come as a shock that 'my savings' are suddenly viewed as 'marital assets' and open to be shared 50/50.

I'm entirely in favour of people pointing out helpful legalities to the OP, I'm criticising the low level 'it's not what I do, so what you're doing is wrong' mentality that several posters have displayed.