Reminds me of the old forum running joke around cloths smelling of chloroform.
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Girlfriend wishes to contribute to my mortgage
- Thread starter OpenToSuggestions
- Start date
Soldato
Yes this
Speaking as a married man with no kids (or intention to have them) I'd like to concur that this makes absolutely no sense.
Tell her to invest the 45k elsewhere. Investing it in your personal asset just causes a load of potential legal complications, and frankly is financially a bad idea. She's going to cause additional overpayment penalties, and she'll see a worse return on her 45k than she would just sticking it in a savings account.
Also, rather than getting hit with overpayment penalties, please stick your overpayments in a savings account that has a higher interest rate than your mortgage. When your fixed term is over, you can then overpay your mortgage without penalty.
Caporegime
Myself and the missus bought out first house together after only being together 18 months. I put 30 odd k down on the deposit and she put about 10. We have been together 16 years. Not married either. I really do not see the issue if you love each other.
Obviously if investing it brings greater returns do that but if you are of the mind thinking she's going to stitch you up there isn't really any chance of the relationship lasting.
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It's not thinking "She's going to stitch me up" it's just common sense. Most relationships don't work out. Often that's through no fault of either individual, it's just that people grow apart, circumstances change, biological clocks go off etc.
Soldato
What's in it for her to invest in the house? Can't she invest in something else?
If you are serious enough for combining things this way you sound serious enough to be married.
If you are serious enough for combining things this way you sound serious enough to be married.
Man of Honour
Wow I've never done agreements with girlfriends... But then again no wonder they didn't last! 
Joking aside. 45k I'd be investing or at least putting it to work.
Joking aside. 45k I'd be investing or at least putting it to work.
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Associate
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Can't see a reason for this when savings rates are higher then existing mortgages.... maybe if fixed rate was up and you wanted to to reduce costs by putting a lump-sum in....but otherwise she should stick in a savings account for next house.
Caporegime
Wow I've never done agreements with girlfriends... But then again no wonder they didn't last!
You haven't done a full contract 50 shades of black style? How do they get access to the pleasure dungeon without a contract?
Man of Honour
I advised my eldest daughter to get out of a relationship because the bloke wanted to do exactly the same.
He said there would be no way she would ever have a share in a house he was just buying but not moved into yet.
She works as a financial advisor for a bank so knows she will have to save her money so when the inevitable happens she's got money to buy her own house.
It was a huge red flag for me and it ended two weeks ago anyway.
He said there would be no way she would ever have a share in a house he was just buying but not moved into yet.
She works as a financial advisor for a bank so knows she will have to save her money so when the inevitable happens she's got money to buy her own house.
It was a huge red flag for me and it ended two weeks ago anyway.
Caporegime
Maybe if you are not willing to commit 100% then that is why. Relationships are rough and smooth and never perfect. We have had plenty of bad times in our 16 years but you work through it and come out the other end. It has never crossed my mind at all what is mine is hers. Even though a large chunk of it initially came from myself. After all she carried my children so I guess it evens out
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Man of Honour
Hit them over the head and drag them by their hair. Duuuuuh.
I'm not willing to commit to doing something that could make life more difficult, which will certainly cost me money, no.Maybe if you are not willing to commit 100% then that is why. Relationships are rough and smooth and never perfect. We have had plenty of bad times in our 16 years but you work through it and come out the other end. It has never crossed my mind at all what is mine is hers. Even though a large chunk of it initially came from myself. After all she carried my children so I guess it evens out
I've been with my wife 11 years, married for 7. If she suggested that I do some paperwork so she can be worse off than having her money in a bank account I would tell her no.
This is a back of an envelope calculation so I might have things wrong...
If house prices rise over time (they are currently falling) then she would stand to make good money. Below is a very simplistic example without taking into account the interest payments.
Example if OP owns house without help from girlfriend:
House worth £400k today.
OP sells house in 10 years. Let's assume it goes up in value by 10% over that time and he's managed to overpay the mortgage enough to own it outright.
OP has 100% ownership of a house worth £440K. Happy days.
Example if girlfriend pays in money:
House worth £400k today.
Girlfriend pays in £45k (so now owns 11.25%)
OP sells house in 10 years. Let's assume it goes up in value by 10% over that time and he's managed to overpay the mortgage enough to own it outright.
OP has 88.75% ownership of a house worth £440K... which is £390.5k.
Girlfriend now has ownership of 11.25% of a house worth £440k... which is £49.5k so a profit of £4.5k (10%).
His girlfriend stands to win if prices rise, which typically they do long term. The OP pays less for the house overall but also makes less profit on the house and is potentially in a slightly worse position compared to buying it 100% himself. Obviously if they put this money into another house together there is an advantage for both parties. But considering more relationships fail than succeed then his girlfriend has a good upside and the OP has a slight downside if they split up.
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I'm trying to understand which way round you mean. Are you saying you advised her to end the relationship because the boyfriend didn't want her to own a part of his house?
Suspended
Apart from your missing the fact that if hes had to pay £45k more in scenario 1, than in scenario 2 he should have £45k.
In fact its more than that since he should be making gains on his £45k he hasn't needed to pay off the mortgage, less interest etc
Yes his house asset value is worth less, but he has a chunk of cash which he in theory should have been able to make more on than he lost by "giving her a share"
Oh I see you editted the values
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Soldato
How does that song go again? I ain't saying she a gold digga, but she ain't playing wi'd no broke ******.
Caporegime
Everything is a risk in life. It depends how you take it. For the sake of him potentially losing 10 grand in 10 years or the possibility of being with your soul mate for life. It is amazing how fickle some people can be with money. There is more to life.
Not sure his soul mate would dump him if he didn't agree to an awkward and non-benefifical (for either party) financial agreement.
Caporegime
You are missing my point. It is not about what is beneficial or not. It is the whole money issue already being in doubt with the person. Signing documents about what you can and cannot contribute. To me at least that sounds alien and I hope my daughter never ends up with someone like that. You start a relationship on that foot and it is doomed from the start imo.
You don't go out for a meal and ask her to pay for the dinner to protect your "income" do you?
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