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Advice re: putting name on mortgage

2 replies

FinancialBurden · 30/12/2011 16:04

We are planning to add an extension to our home for which we are seeking funds from the bank and my partner has suggested putting my name on the the mortgage at the same time as we do this. I am not sure whether this is a good idea or not. We are fairly unconventional in that our finances are still separate although we do have a supermarket credit card in joint names which we use sensibly for the clubcard points. We don't have a joint account because he earns a lot more than me and I have always earned and spent my own money and think I would feel conscious of spending jointly when I am putting a lot less in.

Bit of background: we are not yet married (wedding paid for and booked for next year) but have one child. He has a mortgage on the house, is self employed and a high earner. I see his bank statements etc so know he is not in any difficulties or anything like that. He paid all of the deposit and pays the mortgage and all household bills, big purchases like cars, holidays, basically everything except for food and our son's everday expenses (clothes, softplay, nappies, etc) which I pay for out of my wages. We are both happy with this arrangement, he helps me out a lot as you can see and my money is still essentially my own. I always have enough never to have to ask for money or feel uncomfortable about spending because he covers my living costs. He is willing to have joint accounts if needs be, especially now we have a child, I am not sure what is sensible to do and think we may as well carry on like this until one of us encounters a problem with the arrangement.

I have a public sector job and only earn about 20k. I am still on maternity leave and considering going back part-time. I also have two defaults against my name from roughly five years ago when I was at university and struggling. Both were for small amounts (a few hundred) now paid off (I used my savings to pay off anything outstanding when I became pregnant so also have v little savings although I am trying to put more money away) but they will still be on my credit file. I have a credit card with a low limit and a small overdraft, both of which I use sensibly but basically I'm probably not a good prospect financially for the next few years.

His argument is that we won't be assessed on my income (which is low at the moment and will remain so due to working part time, child are etc) and the fact that my job is steady is a positive because he is self employed. I worry that my low earnings, poor credit etc will reflect badly on him.

In the event that we split up tomorrow, I would not want to make any claim on the house, which he has lived in since before we met, he has paid for entirely and let me live in for free so I am not thinking about legal protection aspects. I always privately rented before I met him and would be happy to do so again. I also inherited half of the house my brother currently lives in and still have a job so my son and I would not be entirely bereft if he did turn out to be a complete barsteward and run for the hills. If I do put my name on the mortgage, he is still not expecting me to pay anything towards it.

What are your thoughts, our bizarre separate bank account arrangement aside? If I don't pay for the house and wouldn't try to claim it as mine in a separation, is there any point in my being added? Will my financial situation impact him if I do and is there any way around this? Will I have to dig out bank statements and wageslips? I don't think they paint the prettiest of pictures at the moment!

OP posts:
CogitoErgoSometimes · 31/12/2011 09:49

If you're getting married next year then that's a handy shortcut to most questions of kinship, property and inheritance rights. You still need to make a will, having said that. If you weren't getting married - and I would say this to any unmarried partner - then it pays to replicate the legal protections of marriage by having property and inheritance arrangments well-documented. You say now that you wouldn't want anything off him if you split but, a few years down the track, facing the single life on a low income and with children to consider, you'd feel very different.

On day to day spending. Many couples find it helps to have a joint account for shared expenses like mortgages, utility bills, groceries and so forth and retain a personal account for personal expenses, gifts, clothes. The higher earner contributes most to the joint account on a proportional basis. Some people are happy to row all their money in together as this gets round the potentially demeaning element of the low earner having to ask the high earner for spending money. However, if one partner isn't good with money, that can cause friction. Others keep it all entirely separate and simply share out the expenses e.g. he pays for groceries, she pays the gas bill. It's an individual decision.

PigletJohn · 06/01/2012 11:40

putting your name on the mortgage means you are both liable for the debt, and if it is the existing mortgage that is being extended, probably the whole mortgage for the whole house.

You say you don't both own the house? It would be untidy if you became liable to pay for the house and didn't own it, for example in the event of his death or bankruptcy, which god forbid.

But you say he is "letting you live in it free" so it sounds like you ought to be sharing housing costs in some way.

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