Overpaying mortgage on joint mortgage

Soldato
OP
Joined
12 Feb 2006
Posts
17,190
Location
Surrey
As for the event of any split, you have to ask yourself that although you pay the majority of the mortgage, would you be able to do so if your partner wasn't contributing to other household costs? It has to be seen as an overall picture and the total cost of household expenses and not just the mortgage. For example, I paid for all the bills and mortgage, whilst my wife paid for all the kid clothing and weekly shopping. I wouldn't have been able to over pay on the mortgage had she not done that so I would have been happy to agree 50% .. regardless.

yes it wouldn't be an issue. we split the costs evenly up until this heating replacement which i will pay myself the £8.5k. other than that, we put the exact same into a joint account each month, the person renting the room does their share into that account, and the bills then are paid out.

to be honest, i'd rent out the other room if she wasn't here so i'd be better off :p but that's a different point for a different day.
 
Soldato
Joined
3 Oct 2009
Posts
19,892
Location
Wales
so if you are thinking you need to protect yourself. then you must have some reservations about how malicious your partner can be. as a reasonable person would say yes you spent the majority on the home so you should get the majority. however if you feel the need to protect yourself then it doesn't look good.
Yet another thing you are talking nonsense about..
 
Soldato
OP
Joined
12 Feb 2006
Posts
17,190
Location
Surrey
Joined
4 Aug 2007
Posts
21,386
Location
Wilds of suffolk
thanks.

this seems to apply before purchase not after? we've already purchased, i'm now questioning any further input.

Well you can switch from joint to common by just advising.
I cannot see why the documenting of the position should be restricted to the start only.
It would probably be advisable for both parties to take some legal advice but other than that why could you not vary.
People would normally do at the start as thats the moment the issue could arise.
 
Soldato
OP
Joined
12 Feb 2006
Posts
17,190
Location
Surrey
Well you can switch from joint to common by just advising.
I cannot see why the documenting of the position should be restricted to the start only.
It would probably be advisable for both parties to take some legal advice but other than that why could you not vary.
People would normally do at the start as thats the moment the issue could arise.

Actually appears we are tenants in common as the split isn't equal at time of purchase. So I guess it's a case of changing the deeds to reflect any further input as and when it happens.

Hopefully it's not too large a cost, as it'd be a pain to do this each year.
 
Soldato
Joined
9 Nov 2008
Posts
7,081
I had exactly the same situation at my first property. I put the deposit down so had an agreement drawn up by my solicitor for when we purchased the place to indicate I 'owned' a few extra percent over my partner.

I then regularly overpaid by large amounts (> £100k over a few years) so looked into my situation with my solicitor. I was advised that the overpayments would not be 'assigned' to me or my 'ownership'. We were (jointly) paying the mortgage down quicker and we would both benefit. In effect I was gifting half to my partner and forcing her to overpay to the value I was doing so. This was even the case when the money clearly came from my own personal bank account (standard mortgage payments came from the joint account).

If you were to make a single large overpayment you may be able to get the original agreement altered (at a cost to you) but your partner would need to agree. I suspect the deeds will need to be updated and the paperwork submitted so easily a few hundred pounds for each change you make.

My advice would be to forget about it and overpay only what you are happy to do, I decided that I trusted my partner enough to not be of concern.
 
Soldato
Joined
13 Feb 2012
Posts
5,761
yes it wouldn't be an issue. we split the costs evenly up until this heating replacement which i will pay myself the £8.5k. other than that, we put the exact same into a joint account each month, the person renting the room does their share into that account, and the bills then are paid out.

to be honest, i'd rent out the other room if she wasn't here so i'd be better off :p but that's a different point for a different day.

Do you both earn the same amount, or are your contributions much lower as a % of your income compared to your partners? If your incomes aren't the same then technically you aren't contributing equally.

This will be the way courts will see it if things don't go well. You want be judged on putting in £X amount but more about how much you committed yourself.
 
Soldato
OP
Joined
12 Feb 2006
Posts
17,190
Location
Surrey
My earnings compared to hers make a difference when just tenants in common? Given we are just in a relationship, but easily could not be and just friends buying a house, I can't see in that situation how a frienss income is compared to mine as being fair
 
Associate
Joined
15 Jan 2011
Posts
819
Thread surprises me. I earn over 3x what my wife does but our marriage is a partnership. If that partnership ends, I'm completely fine if all of the assets we've accumulated during that time are split equally.

That said, my thoughts are divided about what should happen to the rental property I bought before we married.
 
Soldato
Joined
17 Jun 2007
Posts
9,273
Thread surprises me. I earn over 3x what my wife does but our marriage is a partnership. If that partnership ends, I'm completely fine if all of the assets we've accumulated during that time are split equally.

That said, my thoughts are divided about what should happen to the rental property I bought before we married.

That contract that you signed just after the vows bit. The "Whats mine is hers and whats hers is her own"....lol

I'm not even married and my OH gets half. She shares the mortgage. She's 50% shareholder in all my companies.

I probably wouldn't be where I am without her. Or somebody else so yeah I'll give her half if we split. Not married yet though. Only been together for 19 years...Don't wanna be rushing in like some folk do hey
 
Soldato
OP
Joined
12 Feb 2006
Posts
17,190
Location
Surrey
With these questions the ultimate question to ask is; why do you want to overpay ?

Reduce mortgage while I can. If I over pay the same again next year, I'll be down to less than £300k, so over payments of say £25k will be much more achieveable.

I'm aware that when kids hit in my life, having as much reduced debt as possible will be helpful when money is tighter.
 
Soldato
OP
Joined
12 Feb 2006
Posts
17,190
Location
Surrey
Thread surprises me. I earn over 3x what my wife does but our marriage is a partnership. If that partnership ends, I'm completely fine if all of the assets we've accumulated during that time are split equally.

That said, my thoughts are divided about what should happen to the rental property I bought before we married.

Of course. You're married. That's a commitment you make when you get married. It's not one anyone takes when you'd decide to go from dating to official, nor is it one you take when you buy a house with your best friend. Just because the 2 have combined doesn't mean that the default should be what's mine is now hers and vice versa
 
Caporegime
Joined
21 Oct 2002
Posts
26,251
Location
Here
Reduce mortgage while I can. If I over pay the same again next year, I'll be down to less than £300k, so over payments of say £25k will be much more achieveable.

I'm aware that when kids hit in my life, having as much reduced debt as possible will be helpful when money is tighter.
Must be a high percentage? Might be better to keep it all separate? And pay the extras into something else then just dump it in when you remortgage ?
 
Associate
Joined
15 Jan 2011
Posts
819
Of course. You're married. That's a commitment you make when you get married. It's not one anyone takes when you'd decide to go from dating to official, nor is it one you take when you buy a house with your best friend. Just because the 2 have combined doesn't mean that the default should be what's mine is now hers and vice versa
Sure, it seemed like there were married people responding along similar lines though.

I don't think I would buy a house with someone I wasn't married too - seems too risky.
 
Soldato
Joined
19 Jan 2006
Posts
15,940
To be perfectly honest, I think there's bigger issues if you're protecting yourself from a split whilst planning for children (and their subsequent separation) in the same paragraph (imo).

You can't really go into a relationship and plan for it to fail. If you do it basically will.

Everyone's different but I don't understand how you can own a house together but don't have a joint account, because all these sorts of 'issues' disappear when what's yours is hers and vice versa.

100% this - if you commit to buying a house, and your in a serious relationship, building more and more legal splits of money "if" things go wrong just seems wrong to me.

I can sort of understand the deposit situation if you put in more than her, but a mortgage over payment is getting way too detailed a split of things.
 
Soldato
OP
Joined
12 Feb 2006
Posts
17,190
Location
Surrey
100% this - if you commit to buying a house, and your in a serious relationship, building more and more legal splits of money "if" things go wrong just seems wrong to me.

I can sort of understand the deposit situation if you put in more than her, but a mortgage over payment is getting way too detailed a split of things.

But then above the other guy said he'd never buy a house with just a girlfriend of only a couple years?
 
Soldato
Joined
13 Feb 2012
Posts
5,761
Reduce mortgage while I can. If I over pay the same again next year, I'll be down to less than £300k, so over payments of say £25k will be much more achieveable.

I'm aware that when kids hit in my life, having as much reduced debt as possible will be helpful when money is tighter.
If this is your only aim, then the easiest and least complicated way to protect your money is to put it in to a savings account.

When you re-mortgage you can pay off any amount lump sum you want. The only saving you will have made between overpaying and not is of the interest you would have paid on the portion of capital you would have overpaid down. This is offset by the amount of interest you will earn on the money that is built up in savings. So for the minor cost impact you get all the protect you want without fuss, and you can deal with the hassle of paperwork etc all at the same time when you re-mortgage rather then piecemeal as you try and overpay.

In your case, not overpaying, but saving is the most sensible solution.
 
Back
Top Bottom