Yes to a joint mortgage, but no to a joint account.
Nearly 2 in 3 home buying couples opt for separate financial accounts despite taking out joint mortgages, avoiding having a joint account.
Do couples really move in together out of love? A recent survey by independent price comparison site NerdWallet has revealed that 63% of couples looking to buy property together are happy to take out a joint mortgage but would rather keep the majority of their finances in separate accounts and not in a joint account.
Of the 63% of couples who want to keep most of their finances separate, 36% said that they only want a joint bank account for shared outgoings, with the rest of their finances remaining in a separate personal account. 27% would rather not have a joint account at all.
Despite the desire to keep their finances separate, it appears that 76% of people still feel that it is important to know everything about their partner’s finances before moving in together.
As well as the need to know everything, as much as 76% are so ‘practically minded’ that they believe it is important to have a declaration of trust in place if one person is putting in more money into a house deposit than the other.
In addition to making sure they are prepared for any potential civil break-ups, 80% believe that considering the financial implications of a break up is important.
As well as the desire to keep things separate, for many of those surveyed (63%), 10% believe that it is only appropriate to ask a partner about their finances when the information is absolutely necessary, i.e. for a loan application, and 11% think that personal finances should be private and it is never appropriate for a partner to ask about it.
Still, couples seem more forgiving when it comes to one partner contributing more to the mortgage or rent than the other. 41% said they’re happy to still split and pay the bills equally compared to 29% who would expect the lower contributor to pay a bigger share of the bills. An additional 15% expected the lower contributor to do more of the house chores, and 9% said they would expect to be treated to being taken out more regularly and for the lower contributor to pay!
“With a joint mortgage being the biggest financial commitment most couples will enter together, it’s encouraging to see that young couples are prioritising transparency and practicality when managing their finances. By being open and honest about their finances, couples can start to understand any challenges that they may face with a mortgage application, and take steps to avoid suffering any property heartache,” said Richard Eagling, Senior Personal Finance Expert at NerdWallet.
Article by NerdWallet. To see the full findings and find out more about NerdWallet, Visit here