Splitting Mortgage Payments Fairly

Home_Harmony96

Hi All, 

My partner (M,27) and I (F,27) are in the process of saving for a house. 

We are keen to know what works for others/ others opinions when it comes to splitting mortgage payments/household bills, along with any pros and cons of each.  

Currently, we are both working full time, Mr earns more and is likely to keep increasing. Not married & No children, although this is in future plans, which may open another can of worms but that’s for a later discussion lol!

Two options being considered- 

Option 1-

50/50- of mortgage payments and all household bills. 

Option 2-

Split everything by percentage of earnings. Using the calculation attached, at the moment, I would pay 45% and he 55%. This would be reevaluated when pay rises occur. 

Side thought: IF, worst case scenario, we split- how would this then be divided in a sale. 

Thank you for any input you can give! ☺️

elly68

To be honest if you are a couple just put all income in one pot and pay bills save a bit and enjoy the rest in Scotland theres a saying whats mines is mine and his is mine as well lol
If you divi up bills like you are a house share not a relationship it can lead to animosity especially if massive difference in salaries or when maternity leave/kids appear .
The only thing i would say if one of you is paying the deposit if you ever separate that should be given back before the 50/50 split .
great that you are considering options though x

fergie_

My suggestion would be to firstly look at each of your take home pay. Then look at what is joint (mortgage, TV subs, council tax etc), what is personal (ie gym, phone, car insurance etc). Then take into account other expenses such as food, going out and travel costs.

There are a couple of different options, but look at what is going out and what each of you want to be left with after bills. Do you both want to have the same (so you pay more?) or are you happy to split everything 50/50? Basically agree what is a household bill and what is personal. You might also agree who does the shopping?

If not already done so, you could set up a joint account for most bills. The cash back accounts can be good for this. You then both agree how much to pay in and when.

Then, if someones circumstances or the bills change, you then review and so on.

housebuyer143

elly68 said:

To be honest if you are a couple just put all income in one pot and pay bills save a bit and enjoy the rest in Scotland theres a saying whats mines is mine and his is mine as well lol
If you divi up bills like you are a house share not a relationship it can lead to animosity especially if massive difference in salaries or when maternity leave/kids appear .
The only thing i would say if one of you is paying the deposit if you ever separate that should be given back before the 50/50 split .
great that you are considering options though x

I don't agree and don't think it needs to be one option forever, it can be fluid.
While you both work and have no kids I would say not to share money and either of what you suggested works, so a discussion with your partner to see what is palatable for both of you is needed. 

If you then have kids I think it needs adjusting because things are very different then and the earning power of one person tends to suffer. 

My husband and I started 50/50 while we were earning similar money and now it's all in a pot, bills paid and everything left split down the middle. If you earn vastly different amounts now I would be inclined to pay a percentage split, so one person isn't left with no money while the other is saving loads.

Newbie_John

Option 2 in my opinion is the most fair.
As a couple you'll go through various phases where one of you earns and the other doesn't - pregnancy, unemployment etc.

Also putting everything into one pot is risky, 42% marriages in UK end up in divorce so you need to keep that in mind that you also need to save for those moments in future whatever it brings.

Paying bills 50% also is hard when there are big disproportions in your earnings - as a couple you supposed to enjoy life together not that one is struggling to buy shoes when the other does nights out every night 😅

adamL

My partner and I from the day we moved in together put all our earnings into one account - there was no individual money pots. We became one unit. We both have always just considered if what we spend is appropriate, and we allow each other to challenge the other persons spending if either of us thinks that something is a bit over the top, which is of course visible to both of us (as it's a joint account). This happens less than once a year. 

Everything is therefore totally 50/50 independent of the earnings we bring in. There is however an expectation that we don't take a pay cut when looking for a new job.