Buying your home together: who gets the deposit back?

Sophie has spent six years saving for a deposit. Her partner, Tom, earns a good salary but has very little put by. They have found a new-build home they love and have a mortgage agreed in principle but, like many couples, they held off committing until they had seen what the October 2026 Budget would bring.

For many buyers, the Budget was a mixed picture. Stamp duty was left unchanged, disappointing those who had hoped for a cut, and the new ‘Your First Home’ equity loan scheme for new-build homes in England will not start until April 2027.

So, Sophie and Tom are still weighing things up. But amid all the talk of mortgages and stamp duty, there is one question few couples stop to ask: if we split up, who gets the deposit back?

Unequal deposits: what if things don’t work out?

Sophie and Tom’s situation is very common. One partner often puts in more than the other, perhaps because they have been saving for years or have sold a flat, while the other is starting from scratch.

If the relationship later breaks down, unpicking who is owed what can be difficult and expensive. Without clear written evidence of what they intended, Sophie may find her larger contribution is not protected in the way she assumed.

Not married? How you own the home matters

If, like Sophie and Tom, you are not married, the way you own the property is crucial. Cohabiting couples do not have the same legal protection as married couples, and there is no such thing as a ‘common law marriage’. There are two main options:

• Joint tenants own the whole property together. Each is usually treated as entitled to an equal share and, if one dies, the property passes automatically to the other
• Tenants in common each own a defined share, which can be unequal, for example 70/30, and can be left to someone else in a will.

Whichever you choose, a declaration of trust can record each person’s share and how the deposit should be repaid if you sell or separate. For Sophie, it could ensure her six years of savings come back to her first. A cohabitation agreement can go further, covering mortgage payments, bills and what happens to the home if you split up.

Married, or about to marry?

If Sophie and Tom were married, or planning a wedding, the position would be different. On divorce, the court has wide discretion, and the starting point is often an equal division of the family home, regardless of who paid the deposit. A pre-nuptial agreement, or a post-nuptial agreement if you are already married, can set out what should happen based on what you have agreed. While not automatically binding, a properly prepared agreement can carry significant weight.

Help from parents

Now imagine Tom’s parents offer £30,000 towards the deposit. Wonderful news, but is it a gift or a loan? Many first-time buyers rely on the ‘Bank of Mum and Dad’, and parents understandably want to know whether their money is safe if the relationship ends.

Whatever the arrangement, agree it at the outset and put it in writing. If it is a loan, a formal loan agreement or declaration of trust can help protect it. Your mortgage lender may also have its own requirements about gifted deposits.

Before you exchange contracts

• Decide whether to own as joint tenants or tenants in common
• Agree and record how much each of you is contributing
• Consider a declaration of trust or cohabitation agreement
• If you are married or engaged, consider a pre-nup or post-nup
• Document any money from family as a gift or a loan.

The bottom line

Whatever you make of the Budget, buying a home together is an exciting step. Planning for the unexpected doesn’t mean you expect things to go wrong; it simply means you both know where you stand.