Mortgage in my name, how should my partner contribute fairly?
A_Gwen_by_any_other_name
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I'm buying a house for myself and my partner to live in. Would appreciate advice on how to split costs in the fairest way.
My fears are either
a) that he starts to resent me 'profiting' from him, as it will be in the back of our minds that if we split then the money locked in to the house is mine until whenever it's sold; or
b) that I start to resent what could feel like him having a bit of a free ride - where I've taken on a whole load of responsibility without him sharing it.
At the moment, I've two potential solutions.
1. We have yet to discuss the specifics, but initially agreed that I would pay the mortgage repayments and he'd pay bills. This works out at him paying far less than me monthly (about £400 compared to £250). I know I'd find it difficult if I have to work at the same level as currently, when a big motivation in getting the mortgage was to increase free time for both of us.
2. A more complex solution is that we have a shared account and each pay equally into it.
My part goes on the mortgage repayment and some shared living costs. His part goes on bills, shared living costs and a contribution to savings pots. The pots are 1) maintenance & development costs, 2) savings for a van, 3) savings for a deposit. This way, if we stay together then we have a shared van and can get a better mortgage together next time. If we split then he can take those things instead of the equity locked into the house, which is mine.
The issue with this solution is that we both want more free time. In this solution, essentially I'm forcing him to contribute to savings, which means our shared overheads are more expensive than if we don't save, meaning that we can each only reduce our work hours slightly. We can live without a van, and he's not that keen on saving for a deposit.
Another approach is to reduce expenses, but we live very frugally already and have a 30 year mortgage, so I don't think expenses can reduce much.
The reason the house is solely in my name is that he can't get a mortgage for at least 4 years and couldn't contribute to the deposit. Our relationship isn't quite solid enough to simply share everything, though I hope it will get there in a few years. To be quite honest, I feel a bit sad that we're not able to do this as a joint venture where we can be equal in it all. But it's pretty clear that this is a good move for both of us, and I'm happy to be able to help him get into a better financial and health position through offering a way to live which is cheaper than renting.
Thanks in advance for any comments on the two solutions I've set out here, or any other ideas for how to do this in ways which look after both of us.
My fears are either
a) that he starts to resent me 'profiting' from him, as it will be in the back of our minds that if we split then the money locked in to the house is mine until whenever it's sold; or
b) that I start to resent what could feel like him having a bit of a free ride - where I've taken on a whole load of responsibility without him sharing it.
At the moment, I've two potential solutions.
1. We have yet to discuss the specifics, but initially agreed that I would pay the mortgage repayments and he'd pay bills. This works out at him paying far less than me monthly (about £400 compared to £250). I know I'd find it difficult if I have to work at the same level as currently, when a big motivation in getting the mortgage was to increase free time for both of us.
2. A more complex solution is that we have a shared account and each pay equally into it.
My part goes on the mortgage repayment and some shared living costs. His part goes on bills, shared living costs and a contribution to savings pots. The pots are 1) maintenance & development costs, 2) savings for a van, 3) savings for a deposit. This way, if we stay together then we have a shared van and can get a better mortgage together next time. If we split then he can take those things instead of the equity locked into the house, which is mine.
The issue with this solution is that we both want more free time. In this solution, essentially I'm forcing him to contribute to savings, which means our shared overheads are more expensive than if we don't save, meaning that we can each only reduce our work hours slightly. We can live without a van, and he's not that keen on saving for a deposit.
Another approach is to reduce expenses, but we live very frugally already and have a 30 year mortgage, so I don't think expenses can reduce much.
The reason the house is solely in my name is that he can't get a mortgage for at least 4 years and couldn't contribute to the deposit. Our relationship isn't quite solid enough to simply share everything, though I hope it will get there in a few years. To be quite honest, I feel a bit sad that we're not able to do this as a joint venture where we can be equal in it all. But it's pretty clear that this is a good move for both of us, and I'm happy to be able to help him get into a better financial and health position through offering a way to live which is cheaper than renting.
Thanks in advance for any comments on the two solutions I've set out here, or any other ideas for how to do this in ways which look after both of us.
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Everything else is your own money to spend on whatever you want.
Thats how me and my Mrs started things. Eventually we had a kid, she went on to the mortgage and I started paying in more.... I copped for the short end there didnt I?!