First-time Joint Buyers - Unequal Deposit, Process Timeline Questions

rmdim

Hi,

Apologise for the lengthy post, I was hoping someone could provide some guidance ahead of my partner and I starting our home search.

We are first time buyers and will be looking to buy a house of up £450k (Due to the Lifetime ISA limit), in the SE of England. We have unequal deposits saved up - by end of May I will have £15k in my LISA and 2.5k in my current account. He has saved up £40k (split between a Lisa and Isa) and recently received a large gifted amount from family so altogether we were thinking of putting around £80k towards the deposit of the house (15k from me, 65k from him). I earn just over £48k with a performance bonus of 4.8k, he earns £65k with performance bonus ~£6k. My questions are:

1. What agreements should we have in place to ensure both of us receive back the respective amount when we sell in the future (particularly as he is paying a lot more). Additionally, we would like the mortgage payments to be split 50/50, given the differences in deposits and salaries would this be an issue?

2. Given that I would have my desired deposit at the end of May, when would be the best time to apply for a Mortgage in Principle and start viewing properties (We were planning to do it early May)? Do we have to have the full deposit saved up at application or can we put the figure we would have?

3. We both have excellent credit ratings. His account is very clean, I have 3 paid and closed loans from 2019 on my account as well as a credit card closed in 2020. We both have an existing credit card each - his has a limit of 8k, mine 2k, both used for a small purchase each month and paid right away. No CCJs, missed payments, or any outstanding debt or overdrafts for either of us. Would the loans from my past affect our chances of approval?

4. Since our bonuses are performance based, will they be taken into account for the mortgage? My average for the last 3 years is around £3.5k and he has only received one so far due to being in his current job just over a year.

5. Lastly, has anyone used Moneybox' Mortgage Advisors and would you recommend them?

Thank you in advance!

youth_leader

Regarding point one, I have given my daughter a small deposit that she has put into her LISA, and she has saved money in an easy access account too.  She and her boyfriend intend buying and have unequal deposit amounts.  I have encouraged her to have a Deed of Trust  - I found information here.   Deed Of Trust - HomeOwners Alliance (hoa.org.uk)

Albermarle

 What agreements should we have in place to ensure both of us receive back the respective amount when we sell in the future (particularly as he is paying a lot more). 

You have not actually said, but presume you mean if you were to sell because the relationship broke up?

If you were just selling to buy another house together then that would be different.

Although you have started off with unequal shares, after a few years it would become less and less relevant. If you ever got married then its all effectively 50:50 anyway. 

Obviously I do not know you or how your relationship is, but from what you say both of you seem to have saved for a deposit, and have good jobs. So really you are both actively and positively contributing to paying for the home, which I think is more important when you talk about equality than the actual figures. It is inevitable in the majority of joint purchases that one is able to contribute more than another.

Additionally, we would like the mortgage payments to be split 50/50, given the differences in deposits and salaries would this be an issue?

No issue