Joint mortgage-what is fair and wise?

G

Ggm

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We are a young couple hoping to buy our first home. We are not married. I have about twice as much money as my partner to invest in a house. What is the fairest way of taking a mortgage, avoiding any legal problems if we ever split up?
 
You may need solicitors advice on this one, can you give more detail of what you mean by 'fairest way'? Fairest way as I would see it would be to not take on more than you both can afford, i.e. not putting either one of you under undue financial pressure, and bearing in mind that although you take the mortgage jointly you are liable severally, so if one ups and leaves the other is liable for the full mortgage, something to bear in mind re: affordability
 
The options as I see it are:

a. We both aim to pay 50% deposit and payments, meaning I would take on a larger mortgage than I need, but it's less hassle probably.

or...

b. I pay say 70% deposit, partner pays 30% - we both share mortgage payments equally but I retain a bigger share of house ownership (if we ever resell).

or...

c. Or paying while paying 70/30, my partner could gradually pay me back via some sort of legal joint mortgage agreement so that we both own the house equally.

or...

d. theoretically, if we bought something really cheap, I pay 50% total home price. Partner pays whatever is affordable and takes a single mortgage to pay the remainder due. So again retaining 50% ownership each.

And since you mention it, if one person ups and abandons the mortgage, are they still entitled to be named on the deed as a co-owner?
 
Why does it have to be so complicated? What do couples usually do (apart from marriage)?
 
Q What do couples usually do (apart from marriage)?
That's the thing - most couples do not do what you are doing !
It's all windy walks and holding hands to start with - out of nowhere its bang goodbye, half the house please...
I know that sounds pessimistic but look around at your friends and family. Relationships fail all the time.
The reality is that things can go wrong. So what is the harm in both people covering themselves?

Testing the water and looking down the road for the potholes.
Plenty of tales on this site about people getting burned, male and female.
Believe me mate - it's all good in the garden now but I think you need a pat on the back for thinking of 'what if this goes bad'.
If you ever did split, think of the financial consequences if you were left with a house you can't afford or can't sell.

Best thing is to agree between yourselves a balance of investment exposure and departing exposure.
If you put most of the cash in, herself can hardly expect half the house if you separate.
And I don't mean that in a bad way to herself. I would say the same to herself.
Being prudent in a relationship is not a bad thing.
 
Aha, but what makes you think that I am the bloke? :)
But yeah, I have seen many very close couples split up, for whatever reasons. Hate to say it, but sometimes people just do grow apart.
I don't want any bad feelings if anything ever unravels. But I don't want to get burnt either. I am a realist, not a romantic.
 
An assumption on my part that you earn the most money hence making you male.
A fact being true - most men earn more !
I bow my head in apology madam..
 
Yeah, he earns more now. Sadly it is a true fact, that men generally earn more. Why o why?
I have worked hard and earned and saved more, while he spent more or worked less.
Apology respectfully accepted :)
 
On a purely maths level.
If you pay 70% of a bill - you get 70% ownership and entitlement of the item.
That can be arranged with a solicitor and entered as a condition in the contract.
If you want to work out between you the morals of it, that could get interesting.
For example.
I pay all my mortgage, other half pays nothing towards it.
If we get married, she gets automatic entitlement to half the house.
I ask for some contribution and she tell me where to go and here's your dinner.
Go figure.
It must be love I guess.

I suppose most people don't see the bomb coming until its too late.
Then it becomes 'no I bought that' ten times over.
If one person ups and leaves, they are still liable to the loan - they signed the dotted line.

Is it such a bad thing to take a preemptive decision that ultimately
could save a lot of nasty fighting and financial grief in the future.
But in contradiction to that, that approach can also be undermining to a relationship.
Is the relationship only about a percentage?

Sigh... Life.. houses.. women.. complications..
 
Thanks for the advice. Gosh, you must have been a great catch :). At least you get dinner.

As you said, I am trying to iron out any possible kinks beforehand, because I don't want any trouble for either of us. Hopefully, it will all be unnecessary anyway
 
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