Mortgage Advice after Divorce / Separation in Leicester

It can be unfortunate if you decide to part ways with your partner and are experiencing divorce or separation. It can also be a stressful time. This can be even worse if you factor if you have a joint mortgage together, as well as other finances.

Below we have collated just a few of the most common questions we get asked when we deal with customers in this situation who are in need of rearranging their mortgage commitments.

Do I need to keep paying my half of the mortgage?  

Whatever situation you are going through at this time, you are still required to keep up with paying your mortgage. This is still the case if you are living somewhere else.

You do still have an agreement with your now ex-partner to take on equal responsibility for your joint mortgage. Because of this, you are both equally liable for any debts until the mortgage is paid off, regardless of your situation and whether you are living there.

In the event that you do not pay your mortgage on time, you can be at risk of causing a lot of harm to both your and your ex-partner’s credit history. This applies the same if your ex-partner doesn’t pay on time, you will be affected.

This can result in the risk of your home being repossessed if you carry on failing to meet your monthly repayment date or any other debts that you have secured on it.

When should I inform my lender?  

When your separation is finalised, you must contact your lender as soon as possible to let them know. This is even more important if you will struggle to meet your monthly mortgage payments.

What are my options? 

1. Sell The Property

In the situation where both of you have decided to move out of the property, sell up and pay off your remaining mortgage balance, any equity left over will be given between you both.

It is something to discuss between you and your ex-partner on who gets what from that remaining equity.

Here at Leicestermoneyman, we have a team of expert Mortgage Advisors in Leicester who can help if you are looking to move out and are looking at your option for purchasing a new home under a sole name.

Your dedicated advisor will work hard to find you the most suitable mortgage deal for your situation as well as provide you with the appropriate Mortgage Advice in Leicester.

2. Continue to Make Those Payments

In the case where a homeowner has separated from their now ex-partner but is on good terms with them, they sometimes opt for staying within the property and will carry on paying off the remaining mortgage amount.

As long as it works with your personal situation, this can be a convenient route to take, especially for those with a fixed-rate mortgage term.

3. Stay in The Property 

Taking a remortgage in Leicester out in either your own name or your ex-partners can be helpful if you or your partner decides to remain to live in the property.

Being the sole owner of the property means you will need to take out a Remortgage if there is still an outstanding mortgage to pay off in both you and your ex-partner’s names.

This will work by the new mortgage being in your sole name and will involve the lender carrying out another assessment of your affordability.

Can I get a second mortgage?

It can be possible for someone to have more than one mortgage, however, this all comes down to circumstance. You will find that credit scoring systems can majorly vary from lender to lender. Applying for a second mortgage would mean you will be analysed on a number of factors.

Looking at your current financial commitments is one of the main factors they will look at. This is why you need to be confident that you can afford a second mortgage along with the financial commitments you have.

You need to be certain about being able to afford a second mortgage because being declined for this could have a negative impact on your credit file.

Here at Leicestermoneyman, we have an expert team of mortgage advisors in Leicester who are able to help you out with credit searches that will have less of an effect on your credit file.

When our team has collated the necessary information, you will be able to get an idea of the maximum mortgage amount you could borrow.

By doing this, you will be able to know more about your budget and an estimate of the amount your monthly mortgage payments will be along with your current financial commitments.

Getting away from your current financial commitments can be a tough process which is why having a trusted mortgage advisor in Leicester by your side is beneficial as they will be able to provide a helping hand throughout the process.

If you are moving home in Leicester, you may find the experience stressful, especially those going through a divorce or separation. Contact a mortgage advisor in Leicester today and our team will be more than happy to see how they can help.

What if I am in negative equity? 

When you get divorced in a home that both own jointly is in negative equity, it can be challenging to sell the house and pay the remaining mortgage balance off.

In terms of the remaining debt, you may need to divide this between the two of you or come to an agreement with your current mortgage provider.

Date Last Edited: December 6, 2023