Becoming adults

andersonr

Apologies if this is the wrong forum! I am finishing a university course in a few months and have my job lined up. Me and my partner both live with our parents (late 20s) and are looking to move in together - renting. Our combined income will be around £3700 per month after tax and before overtime.

Where on earth do we start?! We would be looking to move out in the new year so it will give us a few months to get sorted. My partner is recently in a newish job and is currently paying off his debts and will be completely debt free by Christmas, as will I as my debt is fairly minimal. Our credit scores are not fantastic due to missed payments etc but we have been on track for the past 6 months. How long will it take for our credit scores to improve and how else can we improve them?

How do you go about splitting bills between a couple? We would also like to save for a mortgage. Our main expenditures are currently mobile phone bills (£20-£40 each), gym membership, petrol is minimal (my job will be close and he gets milage paid) so just the usual costs of rent, council tax, utilities, food etc. No idea where to start!! Thanks in advance

DCFC79

If you look at the credit file & ratings forum you will see multitude of threads on credit score or read the "what your credit score really means" thread.

Hzve you started looking for a place to rent as this could determine how much you can spend on gas, food etc. All the bills you would use eg gas, electricity etc split 50 50, the rest like phone contracts you dont, its how I would do it, others might have a better solution.

Phone bills are expensive, maybe you need to reduce them but thats just me.

andersonr

Thank you. We earn quite a difference between us. My take home around £1600 and my partner is £2100. So a 50/50 split not really fair?

We would start to look for a rental place around Christmas time, ideally 2 bedroom house. This is around £1000+ in our area. We are thinking maybe £1200 a month?

DCFC79

andersonr wrote: »

Thank you. We earn quite a difference between us. My take home around £1600 and my partner is £2100. So a 50/50 split not really fair?

We would start to look for a rental place around Christmas time, ideally 2 bedroom house. This is around £1000+ in our area. We are thinking maybe £1200 a month?

Ok so he earns more so increase it so he pays more then.

1 thing to consider is you havent started in the job yet and in the first 2 years you can be let go, even between now and when you start the offer could be rescinded.

Also consider putting some money into a savings account.

The scores is only seen by you, the history is whats important as lenders etc see it.

andersonr

Thank you. Yes we would like to save for a mortgage too. I am unlikely to be 'let go', it's a very secure job where I have already worked in a different role for the past 7 years but always something to bear in mind!

takman

andersonr wrote: »

Thank you. We earn quite a difference between us. My take home around £1600 and my partner is £2100. So a 50/50 split not really fair?

We would start to look for a rental place around Christmas time, ideally 2 bedroom house. This is around £1000+ in our area. We are thinking maybe £1200 a month?

I think a 50/50 split is fair because it's not your partner's fault you don't earn as much as them!. They have made the effort to get a better paying job and shouldn't be penalised for that. If you want more money then get a better paying job!.

Whoknowskt89

Some couples treat it is 50/50 others do a split.
Just for simplicity...
A takes home 1500
B takes home 1300

Total 2800
Joint bills 800
A puts 500 in
B puts 300 in
Both end up with 1000 left after

Another option is... Pool all money together
2800
Each person gets say 500 spending money a month then extras saved for emergency fund and mortgage deposit

Personally, it's all down to you and your partner. You'll need to sit down and have a big conversation over it all.

Good luck

Marchitiello

There are arguments valid for a 50/50 splits and others for a proportional splits. You would have similar options when buying the house which you will have to select in the convenace papers.

At the end of the day your portion of the total "household" income would be 43% and your partner!s 57%.

You should discuss both options and together agree on what you want to do. In the second scenario, your partner could cover 57% of the household bills and you the remaining 43%.

xylophone

You and your partner might each look into the LISA.

http://www.skipton.co.uk/savings/isas/lifetime-isa

Would your parents be content for you to live with them until say this time next year?

This would give you both time to settle into your jobs, save a rental deposit and look into the local rental market.

trailingspouse

Interesting that you called this thread 'becoming adults'.

It got me thinking about what I was doing in my late 20s. At 28 I moved house - I'd been married for 9 years, this was our 4th house, a semi in a decent area with a good school. We had one child (and would shortly have another), and a cat.

I definitely saw myself as an adult, and had done for a long time. Looking at my own kids, who are now in their mid to late 20s, there was a pronounced shift towards an extended student-type lifestyle, we had a boomerang child, and there was a period when we wondered if any of them would ever get a proper job or be able to afford a house. They all got there in the end.

Lungboy

My wife and I each put the same % of our take home pay into a joint account that's for bills. That way, athough the amount we pay in differs, it's the same percentage contribution which seemed the best way to do it. Getting an account that pays cashback on bills helps a bit too.