Closing the curtain on a relationship is unfortunate and never something people plan for in the beginning. Things become a little tricky if you’ve made financial commitments together and coming to agreements on these doesn’t always go quite as easy as you’d probably prefer it to go.
We often take on the challenge of these Specialist Mortgages, aiding you whether you’re Moving Home in Leeds 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 by customers when it comes to Divorce & Separation Mortgage Advice in Leeds:
Though nobody ever makes a financial commitment with the intention of splitting up, sadly these things are known to happen and attempting to make changes to such a huge commitment can be a trying task to solve.
We’ve found over the years that if the couple has children involved, it’s generally the mother who stays in the property. That aside though, there may come a time when whoever is currently in the property, no matter the gender, will want to take over the mortgage in their sole name. This is quite the challenge.
Though you may be able to demonstrate that you can in fact pay the mortgage on your own, the lender will still view your mortgage terms the same way. At the point of application, you bought the property jointly and in the event of arrears, they legally can chase you both for payments.
Before proceeding with a sole applicant on the mortgage, the lender will have to treat the process almost like a new application, re-evaluating your affordability and eligibility, whether you’ve kept up payments or not. This is purely a formality to give them confidence that you really can pay them back by yourself.
If necessary, applicants to have the option to add a family member or new partner to their mortgage, replacing the ex-partner. There are different ways of assessing your affordability with various different lenders, so if your existing lender turns you away, we may still be able to help you find a way out.
Something that is important to remember when it comes to separation or divorce, is even if you leave the family home and move into a new home, you’re still legally responsible for any joint financial commitments (i.e. your mortgage) that you both took out together.
It makes no difference either, if you and your ex create a verbal agreement. Until you have been removed successfully from the mortgage, you will remain liable for any payments, should the balance fall 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 Leeds before you go ahead with making an offer.
The amount you may be granted to borrow can vary per lender, with some feeling more generous than others. When it comes to our recommendation on who to apply for a Mortgage Agreement in Principle with, we’ll take this into consideration.
This is a possible option, depending on your circumstances. Lenders’ credit scoring systems analyse many different factors before they can proceed and offer you a mortgage.
One of these factors that is important to check, is ongoing financial commitments. This includes the mortgage payment you currently hold with your ex; alongside any additional commitments you have, such as car payments, phone bills and more.
Our advisors will take some of this information from you and put it into our system, analysing it and coming up with a prediction on how much you may be able to borrow. This gives you a rough idea of your budget at outset, and the amount of deposit you’ll need to put down for a property.
Moving on from previous joint financial commitments can be quite difficult. Remember that as far as lenders are concerned, it’s all about the risk. They would prefer to avoid repossession situations at all costs.