Buying as a Couple

As a first time buyer, you may be buying your home with your partner.

But, particularly if you’re not married, bear in mind how you would deal with the mortgage if you wanted to go your separate ways in the future.

If this happens you would most likely want to minimise any negativity and get on with your lives rather than having to extricate yourself from a difficult mortgage deal.

If there’s a joint mortgage and one of you stops paying both of you will be held responsible for the mortgage payments – regardless of the ins and outs of the situation.

And that could mean either of you landed with the bill for both partners – bad news if your relationship breaks up and one of you does a runner.

An interest only mortgage with the capital being repaid with an ISA could give you an inbuilt safeguard because these can only be held in individual names. So you’re not stuck so together as with other mortgage arrangements. Ask an IFA about this.

Whatever happens make sure that your home is owned fairly between you ie according to who’s paying what towards it.

If there’s a problem with sharing openly, at this point, it may be a timely alarm bell to listen to before you commit.

Be wary of any undying statements like “I would never… you can trust me”.

Basically if one partner puts up 60% of the dosh then they should own 60% of the property… If there’s a problem with that, why should it be a problem. Don’t they trust you?

OK it may be best not to let this interfere with getting on with your lives. It might never happen. But you were warned…

If you did split up you’d probably have to sell up and each buy something cheaper.

There’s also a section on If you and your partner already own separate homes

Plus Adding your partner to your existing mortgage

 

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