It is very sad when you need specialist advice and your partner decide to call it a day but when you have made joint financial commitments unwinding that side of things does not always run as smoothly as you’d hope.
Here are three main questions that we get asked on Divorce and Mortgage Advice on a regular basis:
1. How do I remove my ex-husband/wife from my mortgage?
2. How do I remove my name from my ex-partner’s mortgage?
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 and making changes 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 gender, there may come a time that whoever is “in situ” wants to take over the mortgage in their own right. This is not always straightforward!
The fact that you may be able to demonstrate you have been paying the mortgage without any help from your ex 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 2 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 and 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, I 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 before making an offer.
Some Lenders are more generous as regards how much they’ll lend you than others and I’ll take this into account when recommending the most suitable Lender to apply for a Mortgage Agreement in Principle with.
The answer to this one is yes, you can. Lenders and their credit scoring systems take many factors into account before they offer you a mortgage and on-going financial commitments is just one of these.
The monthly payment of the mortgage you still hold with your ex will need to be inputted alongside any other loans and credit commitments you may have.
Once we have keyed all this in for you the various Lenders’ systems will confirm the maximum amount you are able to borrow so you know your budget at outset and how much deposit you will need to put down.
It can be difficult to move on from your previous joint financial commitments but just remember it’s all about risk as far as Lenders are concerned and they want to avoid repossession situations at all costs.