Brits are treading warily with their finances when they decide to move in with a partner new research from online bank first direct reveals. The findings show that for the majority, financial commitment is not on the agenda with couples keeping their distance in their money and property arrangements.
The survey of 1924 UK adults reveals that amongst those living together or those who have previously lived as a couple, the majority did not unite their finances with their partner. 58 percent did not set up a joint account when they moved in, while a further 21 per cent only set up a joint account for bills, keeping their existing separate current account for their own spending. This means that just one in five couples (20 per cent) decided to unify their money and control all their finances from a joint account.
Research by first direct in 2006 found that just 26 per cent of people thought it was important for couples to keep their finances separate within a relationship suggesting that the trend of couples keeping their financial distance has grown over the last five years.
This latest round of research also found that many couples did not fully commit in their property arrangements when moving in together. Just 30 per cent of couples rented with both names on the lease, and only 18 per cent bought together with both names on the mortgage, leaving the majority (52 per cent) who lived in a property rented or bought with only one partner’s name registered.
Additionally, less than a third (28 per cent) of couples paid the deposit on their first property jointly through savings and 14 per cent paid it together but with one partner paying more than the other. Thirty six percent say that one partner put down the whole deposit. Despite this, 97 per cent of people did not sign a prenuptial agreement.
Richard Tolchard, senior mortgage product manager at first direct said,
“Taking the step of buying a home together is an exciting one, but the head needs to keep the heart in check. This is particularly wise where one party is contributing more than the other to the initial deposit or ongoing household finances.
“While homeowners are naturally confident things will work out and are keen to minimise costs when buying a home, getting independent legal advice on what would happen in the worst case scenario is always sensible if you’re not married or in a civil partnership.”
Richard Brown, senior savings product manager at first direct said,
“Couples living together before marriage is now a much more common situation than it used to be – even members of the royal family have shared a prenuptial rent book.
“There is less pressure for moving in to be a lifelong commitment so couples are remaining more independent with their finances when they do. But while couples may feel that there is no longer any need to pay for everything jointly and that a measure of financial independence from each other is healthy, it would still benefit them to pool their savings as the larger their pot, the higher the interest rates on offer.”
