Girlfriend wishes to contribute to my mortgage

If you've already dumped £20k in and are routinely overpaying, probably worth checking another £45k won't trip you over some overpayment limit clauses.

It's not what I'd be looking to do with a massive lump of cash, especially if the mortgage is a low fixed rate and frankly it makes even less sense for her imo but if that's what you're both set on doing, I think you're probably 'covered' with the plans you're drawing up.
 
OpenToSuggestions said:
The intent is not to break up - It is purely a contingency plan so that if it does happen, neither of us get screwed. Both of us have some serious money here. That's the entire point of visiting a Solicitor up front.
The point is that we want to invest in a property together, as the debt free couple is the couple who wins long term.
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What's the difference between having £45k sat in a high interest savings account and a Mortgage?
 
Kenai said:
If you've already dumped £20k in and are routinely overpaying, probably worth checking another £45k won't trip you over some overpayment limit clauses.

It's not what I'd be looking to do with a massive lump of cash, especially if the mortgage is a low fixed rate and frankly it makes even less sense for her imo but if that's what you're both set on doing, I think you're probably 'covered' with the plans you're drawing up.
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I do get hit by overpayment fees currently, but these are small in comparison to what I would save long term.
Thanks for your response :).
 
if the mortgage interest rate is lower than the savings interest rate, i'd be putting that £45k into a savings account at minimum (or premium bonds/investing)
 
OpenToSuggestions said:
She wants to invest in something meaningful together for the future.
I have always overpaid the mortgage hard, and she wants to join me on that commitment.
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Ok sure, but why? What is the specific motivation that means she'd rather put the money into your house than her own investments?

I would just ask yourself that, is all I'm saying.
 
Finding some of the pro-marriage comments here odd given he's said they're not interested.

I've been with my partner for 13 years, on our second house and we have a BTL together, as well as running my own business with £1mil of cross-option/shareholder insurance.

We don't have children but I don't know if that would change the marriage stance.

Not being married has some financial benefits too... we can freely apportion the BTL income in any way we want :D

On topic... we've never had any contracts or agreements beyond the standard mortgage agreement, but then we've both been jointly named on all three houses. Why don't you want her name to be on the house? There's being sensible and then there's planning for failure.
 
for the mortgage company would it need to become a joint ownership, her name on the deeds ?
will you overpay the mortgage with surplus money , if interest rates drop and house prices inflate the benefit of her contribution is maybe of less long term benefit to you

.... so I think you need to think how you make the calculation of what she would get with her contribution, more complex than just a 190:45 K split on future equity.
I'd run some xls calculations for future interest saved, equity shared/lost under different future mortgage rate levels, inflation is eating into house prices too.

[
Me and my partner both did this, at the moment she pays the mortgage all in her name I pay bills, holidays etc etc
even in that situation - wouldn't court say you were notionally paying into mortgage in proportion with your contribution into overall household budget
]
 
Russinating said:
Finding some of the pro-marriage comments here odd given he's said they're not interested.

I've been with my partner for 13 years, on our second house and we have a BTL together, as well as running my own business with £1mil of cross-option/shareholder insurance.

We don't have children but I don't know if that would change the marriage stance.

Not being married has some financial benefits too... we can freely apportion the BTL income in any way we want :D

On topic... we've never had any contracts or agreements beyond the standard mortgage agreement, but then we've both been jointly named on all three houses. Why don't you want her name to be on the house? There's being sensible and then there's planning for failure.
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£200k might be small money for some, but I’d imagine it’s not for the majority of people. I’m not sure I’d be comfortable with a girlfriend having a stake/say in a property I’d been paying for since before we met.
 
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OpenToSuggestions said:
She wants to invest in something meaningful together for the future.
I have always overpaid the mortgage hard, and she wants to join me on that commitment.
We both agree that the sooner this mortgage is gone (15y -> 5y), the sooner we are freer to stockpile cash to move into our forever home.
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Why does, essentially, giving it to you to hold onto for a bit make it more "meaningful" than putting it in a savings account?

What does she actually gain from that? It sounds like a pointless thing to do at face value. Are you going to mark to market the value of your house right now and then, in future, do the same and calculate her share? If the house doubles in value (unlikely but for the sake of argument) are you expecting to give her 90k? + the returns she's due from any other overpayments she's made? Likewise, are you going to reduce it if it falls in value?

Also if you're planning to move into a forever home why not just get married?
 
She might feel strongly about not wanting kids or to get married, but women have been known to occasionally change their minds..

If you currently have no plans to get married or have kids, why not just maintain the status quo?
 
I get the romanticism of joint mortgage payment and establishing an 'empire' as a couple, but the financial sense says:-

1) Don't overpay yourself if you are getting hit with a penalty.
2) What is your mortgage interest rate? If it's lower than an ISA or fixed term savings account, plop your overpayment in to that account until your mortgage deal is up for renewal.
3) Your missus should also follow the advice of point 2) and put that 45k into an interest account rather than devalue it by having to pay early repayment charges. Hell why not open a joint account to share the investment (get the same warm fuzzy feeling as both contributing to the mortgage) and then at mortgage renewal time, evaluate whether to use that fund against the mortgage.

What is interesting about point 3) is that if the worst happens, she has the £45k to lose and you don't lose out - kinda shifts the balance and would be interesting to see how she/you both feel about the inverted dynamic.
 
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Isn't it the case that is she contributes to the mortgage, then if u split up she has a claim on a portion of the property? be cautious.
 
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