Girlfriend wishes to contribute to my mortgage

OP based on my experience I think she's trying to **** you out of your house. I bought a house with all of my life savings with an Ex and put her on the deeds in case I died for her security. Once she was on the deeds she went to civil caught, claimed domestic abuse under an Occupation Order and got me legally barred from entering that property for a year. She could likely increase this year on year. But after all the trauma she caused me after getting me arresting for talking to her I haven't been back to the house I bought for us both.
 
christmascake said:
Most financial advisors would say pay debts first before investing. The difference of 1-2% in a high interest savings account isn't worth being in debt for triple the time you need to be. Yes, overpayment fees will apply, but we'll be saving circa. £50k in interest on the mortgage. The overpayment fees are pennies in comparison.
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That's muddled, it doesn't need impact how long you're in debt for as you can always make a larger overpayment later and/or you don't need to have paid off the mortgage in order to move into/buy a new home.

If you're getting a higher return elsewhere and have a low rate locked in on the mortgage then it doesn't make much sense to overpay.
 
dowie said:
That's muddled, it doesn't need impact how long you're in debt for as you can always make a larger overpayment later and/or you don't need to have paid off the mortgage in order to move into/buy a new home.

If you're getting a higher return elsewhere and have a low rate locked in on the mortgage then it doesn't make much sense to overpay.
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Thanks for your input. Whilst that's true and makes sense, there's also the mental element of knowing, as a couple, we're debt free. For me (and I assume OP, I haven't asked directly) that holds more value that the potential returns on investment.
 
tamzzy said:
exactly the point i'm trying to make
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The only other consideration is the valuation - have they decided how much it's worth now and what process they'd follow in future too.

I wouldn't be surprised if house prices fall by 10% or so in the near future so is she happy for her initial 45k contribution to be worth 40k instead in future in the event they sell up to buy a new house or they split up and he needs to pay her.

From an individual perspective, ignoring the interest rates, it's maybe a good idea for the OP if he thinks house prices will drop and a bad idea for christmascake, he gets to offload some of his risk, but conversely it's a good idea for christmascake if she thinks house prices will rise and bad for the OP as he loses some of the capital gains he'd otherwise have had.
 
christmascake said:
For me (and I assume OP, I haven't asked directly) that holds more value that the potential returns on investment.
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That may hold sentiment for you, but logically, is incorrect
You can pay off the mortgage in the same amount of time AND have money left over - see my previous post
 
dowie said:
The only other consideration is the valuation - have they decided how much it's worth now and what process they'd follow in future too.

I wouldn't be surprised if house prices fall by 10% or so in the near future so is she happy for her initial 45k contribution to be worth 40k instead in future in the event they sell up to buy a new house or they split up and he needs to pay her.

From an individual perspective, ignoring the interest rates, it's maybe a good idea for the OP if he thinks house prices will drop and a bad idea for christmascake, he gets to offload some of his risk, but conversely it's a good idea for christmascake if she thinks house prices will rise and bad for the OP as he loses some of the capital gains he'd otherwise have had.
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yeah i guess it depends on how long they're going to keep the property and ride out (any potential) price drop
 
christmascake said:
Thanks for your input. Whilst that's true and makes sense, there's also the mental element of knowing, as a couple, we're debt free. For me (and I assume OP, I haven't asked directly) that holds more value that the potential returns on investment.
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He wouldn't be debt free, if the house is still in his name but you've got this, slightly unclear so far, agreement between the pair of you, then he's in debt to you.

It's almost like you'd be giving him a mortgage (as you'd be lending him money and sort of securing that on the house) but unlike a mortgage, you're presumably not expecting him to give you any interest but instead want him to give up a pro-rata share of any capital gains (or losses) in the house?

OR are you expecting to get your 45k back even if the house drops in value by 10%?

I'd deffo look to get that all clear and in writing before hand including how you'd go about agreeing on a valuation on the house now and at some point in future if/when you either sell or (touch wood it doesn't happen something else occurs like a breakup or a death etc.). Like he might get run over by a bus so it's then the executors of an estate you'd be dealing with re: what the house was worth when you invested and what % you're entitled to unless of course, he's leaving it all to you in a will and/or taking out life assurance for the mortgage etc..
 
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She's mid 20's and doesn't want kids?
I think you'll find that will change in the next 5-10 years.
Her biological clock will keep ticking. At some stage the urge to make a baby will arise. Especially towards 30-35..

Having a child is an amazing thing. Don't knock it.
 
dowie said:
He wouldn't be debt free, if the house is still in his name but you've got this, slightly unclear so far, agreement between the pair of you, then he's in debt to you.

If he's in debt to me, then every unmarried couple are in debt to each other if they have a joint mortgage. Unless I'm misunderstanding this point.

It's almost like you'd be giving him a mortgage (as you'd be lending him money and sort of securing that on the house) but unlike a mortgage, you're presumably not expecting him to give you any interest but instead want him to give up a pro-rata share of any capital gains (or losses) in the house?

OR are you expecting to get your 45k back even if the house drops in value by 10%?

I would expect the % of property value in the event of a breakup.

I'd deffo look to get that all clear and in writing before hand including how you'd go about agreeing on a valuation on the house now and at some point in future if/when you either sell or (touch wood it doesn't happen something else occurs like a breakup or a death etc.). Like he might get run over by a bus so it's then the executors of an estate you'd be dealing with re: what the house was worth when you invested and what % you're entitled to unless of course, he's leaving it all to you in a will and/or taking out life assurance for the mortgage etc..
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Diagro said:
She's mid 20's and doesn't want kids?
I think you'll find that will change in the next 5-10 years.
Her biological clock will keep ticking. At some stage the urge to make a baby will arise. Especially towards 30-35..

Having a child is an amazing thing. Don't knock it.
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I don't understand why everyone is so obsessed with my 'biological clock'. I do not want children. I am too selfish for that and kids are gross.
 
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