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

Martin_the_Unjust

When you say partner is this someone you love and want to spend the rest of your life with or someone you are entering into a business relationship with in order to buy a house.

Your post makes it sound like the later in which case you need proper legal advice, if it's the former perhaps you need to have a long hard think about the whole partnership/relationship thing

pjcox2005

Then I think you want to ask your solicitor about a declaration of trust which should mean they can pay each person their deposit back and then split the rest on sale (assuming the house hasn't dropped in value).

Personally if young and investing for the long term then I would go with a stocks and shares ISA over overpayments as likely to make/save you more in the long term based on historic performance. Although it is a) higher risk and b) potentially less useful if you're wanting money back in a short period of time (e.g couple of years) although saying that overpayments are locked away in the house as well.

You probably know already but I would suggest you make sure you invest in funds (which in turn hold multiple different shares) rather than a specific company to spread the risk e.g. of a company going bust. 

SophiaPatricia

pjcox2005 said:

Then I think you want to ask your solicitor about a declaration of trust which should mean they can pay each person their deposit back and then split the rest on sale (assuming the house hasn't dropped in value).

Personally if young and investing for the long term then I would go with a stocks and shares ISA over overpayments as likely to make/save you more in the long term based on historic performance. Although it is a) higher risk and b) potentially less useful if you're wanting money back in a short period of time (e.g couple of years) although saying that overpayments are locked away in the house as well.

You probably know already but I would suggest you make sure you invest in funds (which in turn hold multiple different shares) rather than a specific company to spread the risk e.g. of a company going bust. 

Thankyou so much yes i just want the deposit back that i contributed. I understand how the mortgage works now.

And yes iv been doing some research and i think i have settled on vangaurd lifestrategy 100. As a starting point. I intend on 10 years plus so i think once my confidence is built after a year or so, il venture out a little more with it  

SophiaPatricia

Martin_the_Unjust said:

When you say partner is this someone you love and want to spend the rest of your life with or someone you are entering into a business relationship with in order to buy a house.

Your post makes it sound like the later in which case you need proper legal advice, if it's the former perhaps you need to have a long hard think about the whole partnership/relationship thing

I think i understand now how a joint mortgage works, i obviously miss understood in my first explanation. I thought when you take out a joint mortgage it splits, iv now learnt thats now how it works (thanks to people who kindly explained that to me)

I want equal ownership..... i just want to ensure i get back what i put in, as it is considerable amount of money.

Not sure how questioning a relationship is relevent to the post

Petriix

Questioning the relationship is relevant because the financial arrangement has a significant dependence on the nature and development of the relationship. Incomes and circumstances change and, personally, I think you would be happier if you got away from the idea that you own a percentage share of the property and must pay in equally.

In my house we have a pretty unusual situation where my dad paid all of the deposit and I am slowly paying him back while my partner pays the regular mortgage payments. We also both overpay when we have some money to spare.

We don't keep track of who's payed what and we understand that the house is jointly owned. It's our family home, not a financial asset and our mortgage payments are no different to the rent we were previously paying except that we will (hopefully) be able to leave the house to the kids eventually.

If you don't want to do that, maybe you could keep track of how much each of you pay in total. Start keeping a spreadsheet detailing the monthly interest and payments. Maybe you should overpay initially to build up credit in case you ever have kids and need to take any time off work. Then, if you split up or sell, you can calculate the exact percentage each of you own.

SophiaPatricia

Petriix said:

Questioning the relationship is relevant because the financial arrangement has a significant dependence on the nature and development of the relationship. Incomes and circumstances change and, personally, I think you would be happier if you got away from the idea that you own a percentage share of the property and must pay in equally.

In my house we have a pretty unusual situation where my dad paid all of the deposit and I am slowly paying him back while my partner pays the regular mortgage payments. We also both overpay when we have some money to spare.

We don't keep track of who's payed what and we understand that the house is jointly owned. It's our family home, not a financial asset and our mortgage payments are no different to the rent we were previously paying except that we will (hopefully) be able to leave the house to the kids eventually.

If you don't want to do that, maybe you could keep track of how much each of you pay in total. Start keeping a spreadsheet detailing the monthly interest and payments. Maybe you should overpay initially to build up credit in case you ever have kids and need to take any time off work. Then, if you split up or sell, you can calculate the exact percentage each of you own.

Ah yes i see. I think theres a possability my wording has come across unfair which wasnt intended. Especially with me misunderstanding how a joint mortgage actually works in my first post. I see myself and my partner equal within our future purchase, i do however, hope that i have security in a large amount of money i have worked hard to save over such a long period of time.

I think what i take away from this is we can both make equal contributions (apart from the deposit).

Sounds like you have a good set up and have a routine in place! I hope i will do too when it comes to moving out

Socajam

Personally, if it was me I would not be putting down such a large deposit in this environment we are going through.
Post corona virus will be hell on earth and no one knows what that hell will be or how it will turn out
I would put down the same amount of deposit as my partner.
I would put 12k as an emergency fund and a life happens fund - 50% in NS&I income bonds and 50% in Premium Bonds or invest in a safe place where it is readily available.
As someone who went through hell with an ex and had to buy him out (my mortgage increased from 39,500K to 60K - yes this was in 1989 - but bear in mind that during this time mortgage rate was @15%), it was tough for at least 5 years before I could relax.  Not many people on here could envisage having a 15% mortgage rate, but those years were extremely rough for a lot of us.
Having a safety net you are protecting yourself and not putting the majority of your money in to a property which may go into negative equity.
With all of the above, you can still overpay by 100 per month.

SophiaPatricia

Socajam said:

Personally, if it was me I would not be putting down such a large deposit in this environment we are going through.
Post corona virus will be hell on earth and no one knows what that hell will be or how it will turn out
I would put down the same amount of deposit as my partner.
I would put 12k as an emergency fund and a life happens fund - 50% in NS&I income bonds and 50% in Premium Bonds or invest in a safe place where it is readily available.
As someone who went through hell with an ex and had to buy him out (my mortgage increased from 39,500K to 60K - yes this was in 1989 - but bear in mind that during this time mortgage rate was @15%), it was tough for at least 5 years before I could relax.  Not many people on here could envisage having a 15% mortgage rate, but those years were extremely rough for a lot of us.
Having a safety net you are protecting yourself and not putting the majority of your money in to a property which may go into negative equity.
With all of the above, you can still overpay by 100 per month.

Thankyou so much for your help and advice. I am going to stop putting into my LISA as im happy with my deposit, i dont intend to start looking for a house untill the start of 2022, so i have lots of time to continue saving and hopefully by that time i will also have that saftey net!

Im also hoping by that time he will of saved allot more, i know im working with the ifs and buts and the moment, i just like to fully understand stuff so im prepared for when the time comes.

Thankyou!!

Socajam

SophiaPatricia said:

Socajam said:

Personally, if it was me I would not be putting down such a large deposit in this environment we are going through.
Post corona virus will be hell on earth and no one knows what that hell will be or how it will turn out
I would put down the same amount of deposit as my partner.
I would put 12k as an emergency fund and a life happens fund - 50% in NS&I income bonds and 50% in Premium Bonds or invest in a safe place where it is readily available.
As someone who went through hell with an ex and had to buy him out (my mortgage increased from 39,500K to 60K - yes this was in 1989 - but bear in mind that during this time mortgage rate was @15%), it was tough for at least 5 years before I could relax.  Not many people on here could envisage having a 15% mortgage rate, but those years were extremely rough for a lot of us.
Having a safety net you are protecting yourself and not putting the majority of your money in to a property which may go into negative equity.
With all of the above, you can still overpay by 100 per month.

Thankyou so much for your help and advice. I am going to stop putting into my LISA as im happy with my deposit, i dont intend to start looking for a house untill the start of 2022, so i have lots of time to continue saving and hopefully by that time i will also have that saftey net!

Im also hoping by that time he will of saved allot more, i know im working with the ifs and buts and the moment, i just like to fully understand stuff so im prepared for when the time comes.

Thankyou!!

You are welcome.
Yes, you can love someone, but I have seen too many people on here who end up with nothing or in despair in trying to sort of properties. 
Make sure that you have crossed your "Ts" and  dot your "Is".  I would suggest the same to you partner. 
There is nothing worse than a love that goes south.
Also do not under any circumstance get joint credit cards or sign for a loan for anyone.  The last thing you need is for your credit to be messed.
I may sound cynical, but when you trust someone and they screwed you over, leaving you to repay the debt, you learn to protect yourself going forward.
I wish you all the best for the future

SophiaPatricia

Socajam said:

SophiaPatricia said:

Socajam said:

Personally, if it was me I would not be putting down such a large deposit in this environment we are going through.
Post corona virus will be hell on earth and no one knows what that hell will be or how it will turn out
I would put down the same amount of deposit as my partner.
I would put 12k as an emergency fund and a life happens fund - 50% in NS&I income bonds and 50% in Premium Bonds or invest in a safe place where it is readily available.
As someone who went through hell with an ex and had to buy him out (my mortgage increased from 39,500K to 60K - yes this was in 1989 - but bear in mind that during this time mortgage rate was @15%), it was tough for at least 5 years before I could relax.  Not many people on here could envisage having a 15% mortgage rate, but those years were extremely rough for a lot of us.
Having a safety net you are protecting yourself and not putting the majority of your money in to a property which may go into negative equity.
With all of the above, you can still overpay by 100 per month.

Thankyou so much for your help and advice. I am going to stop putting into my LISA as im happy with my deposit, i dont intend to start looking for a house untill the start of 2022, so i have lots of time to continue saving and hopefully by that time i will also have that saftey net!

Im also hoping by that time he will of saved allot more, i know im working with the ifs and buts and the moment, i just like to fully understand stuff so im prepared for when the time comes.

Thankyou!!

You are welcome.
Yes, you can love someone, but I have seen too many people on here who end up with nothing or in despair in trying to sort of properties. 
Make sure that you have crossed your "Ts" and  dot your "Is".  I would suggest the same to you partner. 
There is nothing worse than a love that goes south.
Also do not under any circumstance get joint credit cards or sign for a loan for anyone.  The last thing you need is for your credit to be messed.
I may sound cynical, but when you trust someone and they screwed you over, leaving you to repay the debt, you learn to protect yourself going forward.
I wish you all the best for the future

I most deffiently wont, i hope a mortgage is the only debt i will have, but who knows, life brings uncertainty and circumstances change  

I appreciate your understanding to me just want to ensure my money is secure.

And all the best to you, hope your safe in the current circumstances