Many first-time buyers purchase their first home with the help of a partner. However, sharing a mortgage with someone is a significant commitment that should be carefully considered regardless of how long you’ve been together.
In this post, we’ll look at the benefits of buying a house with a partner, things to consider, and, if things go wrong, a look into buying someone out of a mortgage and more. Keep reading to learn all about whether you should buy a house with your partner.
Should I buy a house with my partner?
The answer is not simple and is highly reliant on your personal relationship with your partner. There are numerous advantages to owning a property with your partner, but it is also a significant financial commitment that must be carefully considered.
This isn’t to say that even the most solid couples won’t have troubles when buying a property together – but it’s not recommended if you’ve only been together for two weeks.
The benefits of buying a house with your partner
There are numerous advantages to purchasing a property with a partner. Here are a few examples:
- You will most likely spend less than if you rented.
- Mortgage payments can be divided in half.
- Because there would be two salaries, the amount you can borrow for a mortgage will be more.
The risks of a joint mortgage
Along with the benefits, when a couple, whether in a relationship or friends, buys a house together, there are risks to consider.
A mortgage is a large quantity of money, and making that commitment to someone is a major step.
Consider the following risks:
- Are you splitting the deposit 50/50?
- Are you willing to split the mortgage payments 50/50?
- Will you share ownership of the house 50/50?
- If you split up, will one of you buy out the other?
What to do if you’ve bought a house and break up with your partner
Don’t freak out if you and your ex-partner recently ended your relationship but have a joint mortgage. There are solutions available to you in this situation.
One choice to think about is selling the property, using the profits to pay off the mortgage, and dividing any remaining profit equally between you and your ex partner.
One more option is for one individual to buy out the other person’s share of the mortgage. However, the individual who keeps the mortgage would be responsible for ensuring that they are able to keep up with the payments on a regular basis.
Because of the way the law is written, if you and your partner are married, the asset is considered to be owned jointly, which would need expert legal advice to make a decision.
Closing thoughts
There is no specific period of time to wait before buying a house with your partner, but you should start by renting together first.
This also means that you can save the same amount of money for the deposit and other costs associated with purchasing a home. Sett has you covered if you’re a couple buying a house or if you’ve broken up with your partner and need expert mortgage advice – contact us today.