First time Buyers Advice needed

juniordoc

No you can pay the monthly repayments in a different split to how you pay the deposit if you like.
Myself and my partner paid into the deposit 80%/20% but pay mortgage repayments 45/55%.
Yes it's best to have this agreement from the start but there is no point doing this until you have a property in mind.
Being tenants in common can be changed to joint tenants later on down the line yes but this is seperate from the mortgage.

RJeff

juniordoc wrote: »

No you can pay the monthly repayments in a different split to how you pay the deposit if you like.
Myself and my partner paid into the deposit 80%/20% but pay mortgage repayments 45/55%.
Yes it's best to have this agreement from the start but there is no point doing this until you have a property in mind.
Being tenants in common can be changed to joint tenants later on down the line yes but this is seperate from the mortgage.

And so if you were to split up (I hope you don't), would you split the equity of the house, 45/55 or 80/20?

juniordoc

No I hope we don't either, but we have considered what would happen if we do!
It depends on when we would part ways as each month we make mortgage payments, the proportions of our equity change.
Basically we would work out each other's total contribution (deposit + repayments), let's say at a given point I had put in 55k, he had put in 25k overall. His share would be 31.25% of the equity, mine would be 68.75%. You then have to consider what happens if the property has increased or decreased in value. Do you split this profit (or loss) 50/50 or do you split it in the same proportions the equity is owned in.
These decisions are personal and you'd both do well to get legal advice when the deed of trust is drawn up.