When you and your partner decide to, unfortunately, call it a day, it’s never easy. This becomes especially apparent if you’ve made joint financial commitments and coming to agreements on these doesn’t always run as smoothly as you’d like.
We often take on the challenge of these Specialist Mortgages, aiding you whether you’re Moving Home in Manchester or looking to Remortgage the property once it’s in your name.
Here are three main questions that we get asked on a regular basis when it comes to Divorce & Separation Mortgage Advice in Manchester:
Of course, nobody goes into joint name home buying with the intention of splitting up, but these things are known to happen sometimes and trying to make changes to such a huge financial commitment can prove challenging.
We find that if the couple has children involved, it’s usually the mother who stays in the property. That being said, regardless of gender, there may come a time when whoever is currently in the property will want to take over the mortgage as their own. This isn’t as easy as you may think!
You may be able to demonstrate your ability to pay the mortgage on your own, without any help from your ex, however, this doesn’t change the way the lender will see your case. At the point of application, you bought the property jointly and in the event of arrears, they will be allowed to pursue either of you.
Before going ahead with a sole applicant on the mortgage, the lender will have to go through all the initial checks from scratch, whether you’ve kept up payments or not. This is just to fully ensure you are able to definitely afford it as they can’t just take your word for it.
If need be, there is the ability to have a family member or new partner step in to replace your ex-partner on the mortgage. There are different ways of assessing your affordability with various different lenders, so if your existing Lender says no we may still be able to help you out.
One thing you must remember when it comes to separation or divorce is even if you leave the family home and live somewhere else, you’re still liable for any joint financial commitments (i.e. your mortgage) that you both took out together.
Coming to an agreement with the ex makes no difference either, as until you’re successfully removed from the mortgage, you’re still liable for repayments if the balance falls into arrears.
When it comes to buying a new property, lenders will take the payments towards your old property into consideration. Because of this, it’s essential to speak with a Mortgage Advisor in Manchester before you go ahead with making an offer.
Some lenders may be more generous when it comes to the amount they’re willing to lend you compared to others. When it comes to our recommendation on who to apply for a Mortgage Agreement in Principle with, we’ll take this into consideration.
Depending on your circumstances, this is entirely possible. Lenders’ credit scoring systems analyse a great number of factors before they offer you a mortgage.
One of these, of course, is on-going financial commitments. This includes the mortgage payment you currently hold with your ex; alongside any other commitments, you may have.
Once we’ve taken all this information and uploaded to our system, we’ll be able to provide an outline as to the maximum you may be able to borrow. This gives you a rough idea of your budget at outset, and the amount of deposit you’ll be needing to put down.
Moving on from previous joint financial commitments can be quite difficult. Just bear in mind that as far as lenders are concerned, it’s all about the risk. They ideally look to avoid repossession situations at all costs.