Protecting Deposit Joint Mortgage
September 2025
Buying a home together is often one of the biggest financial commitments a couple will make. In many cases, one partner contributes a larger deposit than the other, either from savings, a previous property, or help from family. While this arrangement may feel straightforward at the time, problems can arise later if the relationship breaks down or the property is sold. Protecting that deposit is therefore an important step when entering into a joint mortgage.
This summary provides general information and does not constitute legal advice on any individual circumstances.
How Joint Mortgages Work
When a mortgage is taken out in joint names, both partners are equally responsible for the repayments. This means the lender can pursue either or both for the full amount owed, regardless of who actually makes the payments. On paper, joint mortgage holders usually have equal ownership of the property unless something different is formally recorded.
Without any special arrangements, the starting point is often that both partners own the property equally. This can create difficulties if one partner has contributed much more at the outset by putting down a larger deposit.
The Risk to Larger Deposits
If the relationship ends or the property is sold, the law generally looks at how the property is legally owned. If it is registered as joint tenants, the equity is usually divided 50/50, regardless of who paid the deposit. This means the partner who contributed more may not automatically get that larger share back.
The Deposit Protection Myth
Many people believe that if you put in a larger deposit on a joint mortgage, you’ll automatically get that money back if the property is sold. In England & Wales, this is not true. Unless it is recorded properly in a legal document, your deposit may be treated as part of a 50/50 split.
If the property is registered as tenants in common, ownership shares can be set at the time of purchase to reflect who put in what. This can help ensure that a larger deposit is protected, although future contributions, such as mortgage payments or renovations, may also affect the final outcome.
How to Protect a Deposit
One of the best ways to protect a larger deposit is through a declaration of trust. This is a legal document that records exactly how much each partner contributed and how the equity will be divided if the property is sold. It provides clarity and can prevent disputes later on.
Another option is to put in place a cohabitation agreement. This goes beyond the deposit and can cover how bills, mortgage payments, and other financial responsibilities are managed during the relationship, as well as what should happen if the couple separates. Having this agreement in writing helps avoid uncertainty and reduces the risk of disagreements if things change in the future.
Why Take Action Now
It is always easier to agree arrangements at the start of buying a property rather than trying to resolve disputes later on. Many couples avoid these conversations because they feel awkward, but taking steps to protect a deposit is not about mistrust. It is about ensuring fairness and making sure both partners know where they stand. This can actually strengthen a relationship by providing peace of mind.
Looking Ahead
For most people, a deposit is the result of years of saving or proceeds from a previous home. Losing that contribution because it was not protected properly can be financially devastating. Making arrangements at the time of purchase, through the right documents and legal advice, is the most effective way to safeguard your investment.
How Can Fullers Help?
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