I have a bigger deposit than my partner plus i want to make overpayments?

SophiaPatricia

Hi, I intend on getting a joint mortgage with my partner, as it stands i have a fair bit more saved than he does. How will this work when getting a mortgage and secondly, i intend on making over payments, im unsure how this works on a joint mortgage - well i am unsure how a joint mortgage works all together. 

Please can someone confirm if i have understood this correctly - £140,000 mortgage joint = £70,000 each, that means i have £50,000 left to pay due to have a 20k deposit. I then want to give, for example, an extra £100 per month towards my mortgage. Does that then come off my remaining 50k? 

Can anyone help give me a little more understanding, thankyou.

Socajam

Personally, I would not be making overpayments
Also I doubt that your overpayment will decrease your 70k(as you seem to think), the overpayment will decrease the full amount 140K, hence my answer above

SophiaPatricia

Awww Socajam i really dont understand how it works can you break it down for me please....

SophiaPatricia

Lets say i dont make overpayments then.... what about the larger deposit?

Red_Dwarf_Possey

A joint mortgage just means your both on the account im joint mortgage with my wife but I pay all the mortgage.

SophiaPatricia

And also the mortgage calculator on this site shows significant changes by just overpaying a small amount per month... i could commit to this im just not sure my partner could

Red_Dwarf_Possey

You don't pay half the mortgage each you have 140k to pay

SophiaPatricia

Red_Dwarf_Possey said:

A joint mortgage just means your both on the account im joint mortgage with my wife but I pay all the mortgage.

But what happens if my deposit is way bigger? is there security for that? 

jackieblack

SophiaPatricia said:

Hi, I intend on getting a joint mortgage with my partner, as it stands i have a fair bit more saved than he does. How will this work when getting a mortgage and secondly, i intend on making over payments, im unsure how this works on a joint mortgage - well i am unsure how a joint mortgage works all together. 

Please can someone confirm if i have understood this correctly - £140,000 mortgage joint = £70,000 each, that means i have £50,000 left to pay due to have a 20k deposit. I then want to give, for example, an extra £100 per month towards my mortgage. Does that then come off my remaining 50k? 

Can anyone help give me a little more understanding, thankyou.

Fundamentally, if you have a joint mortgage you are both equally responsible for the whole mortgage amount - you are not only responsible for half each.

You should do some research. Perhaps start here: 

https://www.money.co.uk/mortgages/how-do-joint-mortgages-work.htm

pjcox2005

You need to separate out ownership of the house and the mortgage.
Put simply, the mortgage is an agreement to borrow an amount from the bank secured against the property. For a joint application, you are both liable for the full amount e.g. if one decides not to pay, then they'll just chase the other one - so you're not paying down "your half" of the mortgage.

If you're protecting a higher deposit that's typically done by being either tenants in common  where you specify what percentage of the house each owns (so instead of 50:50, perhaps 60:40) or as a deceleration of trust where the other person acknowledges that one person has contributed a higher deposit so should get that back on sale. You need to speak to a solicitor about what they would put in when doing the legals for the house purchase. Normally added costs and a couple of separate documents.

For mortgage overpayments I personally would keep it simple and rather than overpaying, I'd put the overpayment in a personal savings account or start investing (or even contribute more to a pension). Overpayments save money long term as you basically get the benefit of not paying interest year after year on that amount, but it's exactly the same as saving. So if mortgage rate is 3% and savings rate is 3% then there would be no financial difference between overpaying or savings account - although the savings account probably has the benefit of being more useful in emergencies as you can access it if you've got the discipline not to access it for other things.

I'd also add that it's probably a fine balance between protecting your savings, and being equal partners committed to a relationship so it can be emotional saying you want a higher element of the house. Also consider how you'd feel if the other partner ends up having a higher salary or perhaps you take time off work caring for a child - would you expect things to be equal and joint money in those circumstances or for it to be split so that you both contribute to bills but they get to keep the higher earnings to save for the future whilst you could have very little disposable income?

SophiaPatricia

pjcox2005 said:

You need to separate out ownership of the house and the mortgage.
Put simply, the mortgage is an agreement to borrow an amount from the bank secured against the property. For a joint application, you are both liable for the full amount e.g. if one decides not to pay, then they'll just chase the other one - so you're not paying down "your half" of the mortgage.

If you're protecting a higher deposit that's typically done by being either tenants in common  where you specify what percentage of the house each owns (so instead of 50:50, perhaps 60:40) or as a deceleration of trust where the other person acknowledges that one person has contributed a higher deposit so should get that back on sale. You need to speak to a solicitor about what they would put in when doing the legals for the house purchase. Normally added costs and a couple of separate documents.

For mortgage overpayments I personally would keep it simple and rather than overpaying, I'd put the overpayment in a personal savings account or start investing (or even contribute more to a pension). Overpayments save money long term as you basically get the benefit of not paying interest year after year on that amount, but it's exactly the same as saving. So if mortgage rate is 3% and savings rate is 3% then there would be no financial difference between overpaying or savings account - although the savings account probably has the benefit of being more useful in emergencies as you can access it if you've got the discipline not to access it for other things.

I'd also add that it's probably a fine balance between protecting your savings, and being equal partners committed to a relationship so it can be emotional saying you want a higher element of the house. Also consider how you'd feel if the other partner ends up having a higher salary or perhaps you take time off work caring for a child - would you expect things to be equal and joint money in those circumstances or for it to be split so that you both contribute to bills but they get to keep the higher earnings to save for the future whilst you could have very little disposable income?

Ok thankyou so much for your response. I dont want to own anymore of the house, i want that equal. I just want to ensure whatever money i put into the house, i get back. Any profit would be split equally, does that make sense? So fron what youv said we could sign an agreement that just states i can get my money back?


Im also just about to make my first investment in stocks n shares!! Super nervous/excited!