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It would preclude her from first-time buyer schemes, yeah. But hopefully we’ll stay together and live in this place. Upside is emotional but also financial. I can’t think why it’d make sense for her to continue living here and having cash savings while I have a mortgage.
Sparky-
I can’t think why it’d make sense for her to continue living here and having cash savings while I have a mortgage.
It's a lot of risk to add for not very much benefit. Having cash savings depreciate won't kill you. Having a mortgage won't kill you - in fact it enables you to wisely invest spare cash on something that earns you more than the 2% you should be paying on it. But having a relationship fail when you both have a share in the same home can cause a lot of grief.
The cash savings problem can be dealt with easily - invest the cash somewhere. This could be a property whilst exploiting the FTBers schemes or it could be investment ISAs or even Pension contributions.
The mortgage is obviously harder to close off if you don't have the cash to pay it off - but most people don't want to pay their mortgage off because they are happy to pay the %2 or whatever so they can spend the money on other things or invest it elsewhere. It's so cheap it's almost free.
As above, some kind of alternate legal agreement might be the better way to go.
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Upside is emotional but also financial. I can’t think why it’d make sense for her to continue living here and having cash savings while I have a mortgage.
Given how long you've been together, I'd probably rephrase the question as.
My partner and I have a house and a pot of money.
Should we pay off more of the mortgage, keep it in cash or invest it elsewhere.I know that's somewhat ignoring the emotional side of being literally invested in the place but I guess the responses are more about the fact that having a lump of cash or easily accessible savings is very useful. Putting it into the house makes it much less flexible.
Howard
duncs
Has she bought somewhere before? Will her buying a bit of your place preclude her from various govt. schemes for FTBers?
It would also mean if she wanted to buy somewhere else whilst still owning a share in your place she’d trigger the punitive second home stamp duty?
I’d assume you’ve done your homework on this but there is a great deal to consider here and the upside is a bit shrug - it’s not something I’d do lightly.