Anyone good at maths? Overpaying my half of the mortgage (while partner doesn't do extra on his)

smith_616

Hi everyone
I am hoping that there is someone here who is much better at maths than I am.  I want to overpay on our mortgage, my partner doesn't.  We have paid half the mortgage each each month for the last 10 years.  He is happy me overpaying to get my half paid for early.  But we are stuck on the calculations of this, particularly trying to take into account the interest I will save on my money paid towards the mortgage.  We keep our savings etc separate due to historical issues, so any interest I save is 'my interest'.  
I have looked at the mortgage repayment calculator, but it doesn't really answer our question where one person is repaying and one person isn't.   
Mortgage is currently £55774.12 with 11 years left on it at 0.89%.  It is a tracker with no overpayment charge (although I will double check this with a phonecall to the bank).
I want to put down a lump sum of £7000 now and then overpay by £500 each month.  
When will I stop paying because I will have paid off 'my half'?  I presume that this will be before I have paid an official half of the total due to interest saved.  How long will I need to set up the direct debit for?
I guess that this answer might change if the interest rates dramatically rise or fall?  But I don't think we will worry about that.  
Any ideas?  I may well be totally over complicating this but maths is not my strong point!
Grateful for any help

Barny1979

Doesn't sound good if you disagree with jointly overpaying, as it suggests that both partners aren't on the same page. If you live together in the long-run, he becomes mortgage free and you've overpaid for the same benefit. Is there a earnings discrepancy?

getmore4less

Simple way is to create 2 virtual accounts with 1/2 each and run them seperately in a spreadsheets.


With a mortgage rate of <1% might be easier to just save your extra as you can get a better rate than the mortgage. 

I can do the numbers if you still want to go with your plan but it will be tomorrow. 

smith_616

Thanks for your reply.  No, he actually earns more than me.  I have been trying to convince him for years to overpay and he just will not (no idea why not really, he definitely could do).
I've realised that I am never going to change his mind so I am now thinking that I want to overpay my 'half' of the mortgage to get me mortgage free.  I anticipate that he will continue paying his usual amount, I will be mortgage free and he will then continue on paying off the remainder of the mortgage because he still has some of his 'half' left.  I am not sure I am explaining this very well. 
So I suppose my question is, if he continues to plod away and I blitz (all on the same mortgage), when would I stop, knowing that my 'half' is done, taking into account any interest I've saved? 

FtbDreaming

You still owe half of that amount owed now which will be £27,557.06 plus any interest charged before your half is cleared. It does sound difficult to just say well x is my half and x is yours as you are both equally responsible for the payments and if you did split and you e paid in £20,000 more than him you’re probably still only entitled to half each of the house. If you stop paying say in 40 ish months when your £27,000 is paid what’s to say your oh will want to make all the remaining payments by himself? You may still end up paying more. 

Barny1979

smith_616 said:

Thanks for your reply.  No, he actually earns more than me.  I have been trying to convince him for years to overpay and he just will not (no idea why not really, he definitely could do).
I've realised that I am never going to change his mind so I am now thinking that I want to overpay my 'half' of the mortgage to get me mortgage free.  I anticipate that he will continue paying his usual amount, I will be mortgage free and he will then continue on paying off the remainder of the mortgage because he still has some of his 'half' left.  I am not sure I am explaining this very well. 
So I suppose my question is, if he continues to plod away and I blitz (all on the same mortgage), when would I stop, knowing that my 'half' is done, taking into account any interest I've saved? 

But the mortgage is in both names, so in reality you are responsible for the debt too, so if you stopped paying your "half" as you'd paid it off, would he expect you still to contribute? Could get messy if you disagree further down the line without a formal agreement.

smith_616

getmore4less said:

Simple way is to create 2 virtual accounts with 1/2 each and run them seperately in a spreadsheets.


With a mortgage rate of <1% might be easier to just save your extra as you can get a better rate than the mortgage. 

I can do the numbers if you still want to go with your plan but it will be tomorrow. 

I would be extremely grateful if you were able to run the figures - thank you.  It is a million miles beyond my own skills.  

smith_616

Barny1979 and FtbDreaming - thank you too.  Your comments have certainly given me food for thought.  I trust him implicitly.  But... I am not silly enough to think that things can't change, and that people can change.  So yes, I need to think about this a bit more.  Our contributions to the house are already quite unequal (in his favour) as I paid for a lot more towards our extension than he did a few years ago.   

Barny1979

smith_616 said:

Barny1979 and FtbDreaming - thank you too.  Your comments have certainly given me food for thought.  I trust him implicitly.  But... I am not silly enough to think that things can't change, and that people can change.  So yes, I need to think about this a bit more.  Our contributions to the house are already quite unequal (in his favour) as I paid for a lot more towards our extension than he did a few years ago.   

Where does his money go, do you have a joint account or a bills account that you put amounts in, sounds like he has a lot of spare cash and is not invested in the house the way you are, but is happy for you to make the living environment nicer for him without a financial contribution, but will benefit both personally and financially.

QueenJess

I have virtually split the mortgage too with my DH as he didn't want to overpay upfront (although he has now changed his mind and is catching me up).

Anyway.  Get a spreadsheet set up showing the mortgage start, interest charge and capital repayment for each month that you have (just take it from the mortgage account details as it comes out each month).  Then for each of you, you will need the following columns: Monthly payment, interest, overpayment and principal balance.  Your monthly payment is just the payment per the mortgage divided by two.  Your interest is then the interest you are charged per the mortgage divided by the total mortgage outstanding and then multiplied by the remaining mortgage you owe.  Partners one is the same thing, but multiplied by the amount they owe.  Basically this just means you get the advantage of the lower interest because you decided to overpay more. 

Overpayment is obviously any overpayments you make.  The principal balance will be the balance you owe (total start - monthly payment + interest - overpayment). 

Does that make any sense?  Can throw something into Google Sheets later if I get time.

QueenJess

Sorry - just to add, that when we did it, DH did agree that if we ever got the position where I had paid off all the mortgage and he hadn't, then he would pay the whole monthly amount.  I am very confident however that we wouldn't break up and he would never be unreasonable.  I could also prove my payments as I track them all in a spreadsheet if it came to that when the house would be sold on a break-up.

Be careful with unequal payments with extensions etc.  We do ours 50:50, but I know a friend who paid everything for his.  They later broke up and the house had increased quite a bit with the extension and other work he had done.  In the end he bought her out, but he was definitely much worse off as she got the benefit of the price increase from the work that had been done, despite not actually paying for it.