I'm overpaying a large lumpsum - how to then fairly split the remaining mortgage between me & hubby?

nalumansi

I had been saving money for another project but that is not going to pan out so I now want to use it to overpay on my mortgage, held with my husband. We pay the mortgage 50:50. We still owe £195,000, so that's £97,500 each (rounding off the numbers a little to make it more straightforward). My overpayment would reduce my half to £22,500 and shave off £14,456 in interest alone, and mean we pay the debt off in full 6 years & 1 month earlier.

Where I've come unstuck is how to then fairly split the remaining mortgage between me & hubby as I'm the one saving us that interest so think I should get some benefit from it. I know some people will be like, well you are married, your money is his, and vice versa. However, I'm an avid saver, he's an avid spender so I'm minded to protect my money and savings. Not that I'm ungenerous but if I keep control of my money then I can choose what I/we spend it on - I'd rather spend money e.g. on a family holiday rather than yet another guitar or bicycle.... 

I'd be very grateful for any thoughts on this matter as I'm stuck on it!

BikingBud

Isn't it great to see a post that recognises loving and sharing so much on the eve of St Valentine's day.Who ever said romance is dead?

getmore4less

The simple way is you now have a mortgage of £120k

Split the payment £97500:£22500 == 81.25%:18.75%

Thrugelmir

Hopefully you aren't heading for a divorce. As what's yours and mine isn't so straightforward. 

nalumansi

BikingBud said:

Isn't it great to see a post that recognises loving and sharing so much on the eve of St Valentine's day.Who ever said romance is dead?

   Yes... Perhaps not a well-timed post 

nalumansi

Thrugelmir said:

Hopefully you aren't heading for a divorce. As what's yours and mine isn't so straightforward. 

We're very happy! ...as long as my savings aren't intertwined with his expenditure on guitars and bikes! We have a joint account for food, bills, mortgage, etc. And then he has his spending money and I have mine, so we've taken the stress out of our opposing attitudes to money.

elsien

What does he think is fair?

nalumansi

getmore4less said:

The simple way is you now have a mortgage of £120k

Split the payment £97500:£22500 == 81.25%:18.75%

Thanks. In theory that's nice and simple. But then if we apply that to our monthly payments he would be paying a lot more than he does now - it would rise from £650 to over £1,000 which isn't feasible / desirable. Or did you have another way you were thinking about how you then actually apply that?

getmore4less

nalumansi said:

getmore4less said:

The simple way is you now have a mortgage of £120k

Split the payment £97500:£22500 == 81.25%:18.75%

Thanks. In theory that's nice and simple. But then if we apply that to our monthly payments he would be paying a lot more than he does now - it would rise from £650 to over £1,000 which isn't feasible / desirable. Or did you have another way you were thinking about how you then actually apply that?

Don't change the term reduce the payment,  then you have a smaller payment and he should be paying the same as now.

You have accounted for ERC and maybe the need to change as your LTV will have improved.

enthusiasticsaver

If you overpay you are saving interest which has not actually yet been charged so not sure how you can account for that now.  It is in the future when you have no mortgage when  it is repaid early that you benefit from that although he will too.  Sounds incredibly complicated and if you are married your finances are intertwined anyway.  You might have done better to invest the overpayment money either in your pension or stocks and shares isa if you are trying to keep your contributions to the mortgage equal. 

getmore4less

Just think of it as 2 loans 50% each.

You just pay less after you paid off part of your share.

hubby pays the same as they were before.

All the interest saved is on your part.