Mortgage Advice after Divorce / Separation
Mortgage Advice after Divorce | Mortgage Broker in York
The changes to a Mortgage when you are going through a divorce or separating.
It is very sad when a couple splits regardless but when financial commitments are involved, it makes it even harder to sort things out when it comes to such matters like a mortgage.
Here are three main questions that are often asked on the topic of 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?
3. Can I have 2 mortgages?
Mortgage Advice After Divorce
How do I remove my ex-husband/wife from my mortgage?
When you first decide to purchase a home together you don’t do proceed with the mindframe of splitting up in the future but unfortunately this does happen. And a mortgage is a massive financial commitment and making changes to it further on down the line is not always easy.
There may come a time that whoever is in the right position and 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 will not change the fact that at the start of the mortgage 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 completely reassured that the remaining applicant is competent in terms of affordability and able to prove they can 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 even a 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, there may still be a way to help you.
How do I remove my name from my ex partner’s mortgage?
In the event of a separation or divorce, it’s important to remember that even if you vacate the family home you remain responsible for any joint financial commitments that you have taken out with your ex-partner. This is the case regardless of if you make an agreement with your ex that they will make all the payments.
The mortgage payment for your old property will be also 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 Professional Mortgage Advice before making an offer.
Some Lenders are more generous in regards to how much they’ll lend you than others and this is taken into account by a Mortgage Advisor in York when recommending the most suitable Lender to apply for a Mortgage Agreement in Principle with.
The answer to this 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 in-putted alongside any other loans and credit commitments you may have.
Once I 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.