It is very sad when you and your partner decide to call it a day. When you have made joint financial commitments. Unwinding that side of things does not always run as smoothly as you’d hope.
Three main questions that we get asked regarding Divorce and Mortgage Advice on a regular basis:
Obviously, when you buy a home together you don’t do so with the intention of splitting up in the future. But it is a massive financial commitment. Making the change to your mortgage further on down the line is not always easy.
When there are children involved, quite often it’s the mum that stays in the property but regardless of your gender. There may come a time that whoever is “in situ” wants to take over the mortgage in their own right.
The fact that you may be able to demonstrate you have been paying the mortgage. Without any help from your ex. It does not change the fact that at the point of application you bought the property jointly or. In other words, in the event of mortgage arrears there are two people the Lender is allowed to pursue.
Before removing a party from a mortgage. The Lender has to be sure that the remaining applicant has the means to be able to afford the mortgage. On their own going forward. This means a full assessment of income. Regardless of whether you have kept up mortgage payments in the past or not.
Quite often in these situations, there is someone. Who can step in to replace the ex-partner such as a family member or indeed your new partner?
Of course, there are lots of Mortgage Lenders out there. All with slightly different ways of assessing your ability to afford a mortgage. So don’t give up hope if your existing Lender says no, we still may be able to help you.
In the event of a separation or divorce, you need to understand that even if you vacate the family home. You remain responsible for any joint financial commitments you took out with your ex-partner.
This is the case even if you make an agreement with your ex that they will make all the payments.
The mortgage payment for your old property will be taken into consideration. If you want to buy a new property in the future. So it’s essential in these instances that you take Mortgage Advice in Leicester before making an offer.
Some Lenders are more generous as regards how much they’ll lend you than others. I’ll take this into account when recommending the most suitable Lender to apply for a Mortgage Agreement in Principle with.
Depending on your circumstances, yes this may be possible Lenders and their credit scoring systems. They take many factors into account before they offer you a mortgage.
On-going financial commitments are just one of these. The mortgage payment that you hold with your ex will need to be inputted. Alongside any other credit commitments, you may have.
Once we keyed all this in for you, our system will confirm the maximum amount you are able to borrow.
So you know your budget at the outset and how much deposit you will need to put down.
It can be difficult to move on from your previous joint financial commitments. Just remember it’s all about risk as far as Lenders are concerned. They want to avoid repossession situations at all costs.