Buying a home together with different financial situations ona

AsgardsPrincess

Hello
My fianc! and I are looking to buy a house next year. We both still live with our respective parents so are first time buyers.
I've been working for 5 years and I am good with money and I have saved a considerable amount of money, enough for a decent deposit myself. My partner has not saved very much at all; the mortgage advisor was trying not to laugh... 😂
My question is, what's the best way to go about this? As I'm putting down basically my lifesavings I don't want to then own the house 50/50 as we aren't married and it's not very fair on me if something happened (touchwood, but you have to be realistic )
Can you decide the home ownership % at the time when you write the contracts with the estate agent? We'll be paying the mortgage off equally per month so in th e first month I would effectively own the house 90% but over the years as we pay the mortgage he'd essentially "catch up" and I'd own more like 58% by that point.
Really know clue how any of this works so advice is much appreciated! :j
Thank you and sorry if my question dosent make sense

diggingdude

Have it written to both get your deposits back first before any equity is split

yksi

Unfortunately that might not work out fairly because it's a percentage and tough to calculate later if the house changes value or the equity changes quite a lot. People have asked this before and quite a few suggested this: Get a solicitor to draw up paperwork showing that you have lent him his half of the deposit, and in the event it's sold, he has to repay it immediately. That way you both own the home 50/50 and he just owes you however much you lent to make it equal. It makes the calculations far simpler.

Tom99

Say you buy for £200k and you put down a 50K deposit.
You have a deed of trust which states that on the sale of the property you get the 1st 25% then you pay off the mortgage then you split the difference 50/50 (if you are paying the mortgage 50/50)

Sea_Shell

House aside, if you're so different in your attitudes to money (and saving) how do you foresee your day to day living panning out?

Are they a "spender" and you a "saver" generally?

Does one of you earn much more than the other?

Are you both prepared to subsidise each other, if one's a bit short one (every) month, or if one of you lost your job?

AsgardsPrincess

Thanks for the advice everyone. Yes that does concern me, I was thinking to make a budget of how much we need to spend each month on essentials and that will auto transfer into a shared account on payday so the essentials can definitely be paid for (mortgage, taxes, bills, food etc)

Mojisola

AsgardsPrincess wrote: »

I've been working for 5 years and I am good with money and I have saved a considerable amount of money, enough for a decent deposit myself. My partner has not saved very much at all

AsgardsPrincess wrote: »

Yes that does concern me, I was thinking to make a budget of how much we need to spend each month on essentials and that will auto transfer into a shared account on payday so the essentials can definitely be paid for (mortgage, taxes, bills, food etc)

Do you trust him not to dip into the joint account when he's spent everything from his own account?

Are you sure you want to be financially linked to him through a joint account until he's improved his attitude to money?

danlightbulb

Dump him and find someone from a better social class.

alex_163163

So I was in a similar position when I bought with my boyfriend.
We had a trust deed written that If we split and sold the house then I would get my deposit back first and then any equity be split equally as we pay the mortgage and monthly bills equally.
Some will say that this is unfair as I am effectively giving him an interest free loan, but I couldn’t have afforded the mortgage without him. We both needed each other for the purchase so I think we are equal.

My boyfriend also didn’t have much savings but I think I have rubbed off on him over the last 4 years and now he’s much better at saving.

We set up 2 joint accounts - one for bills which we both transfer the same amount of money into on our respective paydays.
The second for savings - for household items, holidays, future life events, etc. We contribute different amounts to this as we earn different salaries so it’s just what we can both afford.
We then keep some monies in our personal accounts for our own spending. Works well for us!!

AsgardsPrincess

Rude and unhelpful

AsgardsPrincess

His attitude isn't awful. He has to pay alot of board to his parents and his job dosent pay as well as mine but he is in the area he wants to progress in and has good prospects in the future.
Of course I trust he wouldn't use our joint account for things that aren't essential.