Break up sorting mortgage

Westisbest123

After a little advice myself and my partner bought a house over a year ago and are now splitting up. I am hoping to be able to keep the house and pay him back his portion of the deposit and any money he put into buying stuff for the house. He is now saying he is entitled to half of all mortgae payments we made back as well? Is that correct? I am not trying to rip him off, and trying to do things as fairly as possible. The house has not gone up in value if it had obviously I would pay him half of the extra value as well. I feel the payments to date can not be included as we both lived in the house. Any help gratefully received

ACG

How can you be entitled to half the mortgage payments?
If you had rented would he be entitled to half the rent back?
If you sold up, would he be entitled to half the mortgage payments back?

Technically he is probably entitled to half the equity, however as it is all quite recent, I would say the money he put in is pretty fair.

Dont forget to take his name of the mortgage and deeds at the same time as paying him his money. Do not keep pay him anything unless his name comes off the paperwork.

Westisbest123

I am willing to pay half of any equity but I don't think there will be any and give him back his deposit in full. Mortgage payments though I had neve heard of and he was living in house to. Does that mean he could ask for half of all bills etc?? Thank you I didn't think I was being unreasonable

KeepOnKnitting

Westisbest123 wrote: »

I am willing to pay half of any equity but I don't think there will be any and give him back his deposit in full. Mortgage payments though I had neve heard of and he was living in house to. Does that mean he could ask for half of all bills etc?? Thank you I didn't think I was being unreasonable

He can ask for a unicorn, but that doesn't mean he can have one!

I think you are being fair when you offer him his full deposit and half of any equity that has built up since the purchase. Also, ACG is right about him needing to be off the mortgage and deeds. You need to sever any financial connection he has to the property. Cover yourself here, it's much easier now than in the future.

AnotherJoe

OP of course it's not correct. What on earth is his basis for wanting all his mortgage payments back? The majority of each payment would have been interest, eg the cost of having a mortgage. He doesn't get that back any more than you do.

There will be a portion of the payments that has reduced the size of your mortgage, you can see what it is by knowing how much you owe now , eg say you borrowed £200k and pay £1k a month, and you now only owe £195k, that's how much you paid paid back, £5k, not the £12k mortgage payments, because £7k went in interest.
So in this example, you've paid back £5k so he should get half of that,£2.5k. Not the full £6k he wants, and that is automatically catered for by him getting half the equity, which consists of the deposit plus what was paid off the mortgage (not what was paid into the mortgage)

MortgageMamma

Sounds to me like you have an angry ex who lives in cloud cuckoo land. He's trying to recover his emotional loss by trying to recoup the financial loss.

This is just life, relationships often don't work out. When you buy a house with someone its based on a lot of trust and faith for the future and nobody has a crystal ball so there is always financial and emotional risk.

I do think he's being a bit unreasonable regarding the mortgage payments. Are you actually in a position to offer him anything at all right now? You've only bought quite recently, how much deposit did you put down and what was the purchase price?

You need to take some professional financial advice to see if you can actually afford to pay him anything at all or for him to come off the mortgage. Don't try and fight your way through it blindly, get the advice first before you make any further offers of financial settlements.

Speaking as someone twice divorced I wish you the best of luck in sorting it out and moving on to a happier life.

AnotherJoe

MortgageMamma wrote: »

I do think he's being a bit unreasonable regarding the mortgage payments.

Much more than "a bit" since most probably around half or more of every mortgage payment they are making is interest. There's no reasonableness at all in OPs ex wanting that interest back, or any of it. That is the cost of borrowing that money that they both equally incurred.
They should just split the equity (which includes the deposit) 50/50 which will also cover the non interest part of the mortgage payments and that's what should be her cost to buy him out (with all legal costs split as well of course)

MortgageMamma

AnotherJoe wrote: »

Much more than "a bit" since most probably around half or more of every mortgage payment they are making is interest. There's no reasonableness at all in OPs ex wanting that interest back, or any of it. That is the cost of borrowing that money that they both equally incurred.
They should just split the equity (which includes the deposit) 50/50 which will also cover the non interest part of the mortgage payments and that's what should be her cost to buy him out (with all legal costs split as well of course)

I agree. The sad fact is though what one person thinks is reasonable the other doesn't and sometimes its not even the "injured" party that causes all the problems. I really think more people need to have this sort of stuff agreed upfront as part of the house buying process - what happens if there is a separation - hindsight is a wonderful thing.

newsgroup_monkey

I would have thought that if the mortgage was a fixed-term one, the financial penalties for getting out of it will swallow up any money you've actually paid off anyway.

Westisbest123

Thank you all for the feedback. I do have a solicitor and I am hoping to be able to get the mortgage in my name. Happy to pay him His dep a any equity pretty sure there is none as only just over a year in home. I will only be offering him the above and if he is not accepting of that we will have to sell which will end up costing him more in the long run, estate agent fees, solicitors and he will still have to pay half the mortgage until the house sells. Thanks again it's been good for me to realise I was not losing my mind!!