Divorce and Mortgages – Everything You Need to Know

Divorce and Mortgages – Everything You Need to Know

Going through a divorce can be one of the toughest times in an individual’s life. However, when you add a mortgage into the mix, this adds even more pressure to the situation. Our team of mortgage advisers are used to supporting couples who have a joint mortgage and are going through a divorce. Find out more here about this topic and the mortgage options on offer for couples and individuals.

Options for Your Mortgage After Divorce 

There are a few different options when it comes to your joint mortgage divorce. We know how hard it can be to remain in your previous property, but this is sometimes the best option for families with children. Keep reading as we share the various options for divorce and mortgages.

Selling the Family Home 

While this can often be a devastating decision to come to, many couples going through divorce opt to sell the family home in order to pay off the mortgage and leave the joint mortgage agreement. While this might seem like the easiest option for your divorce and mortgage, you’ll want to think carefully if this is the best solution for your family. You’ll be able to split any proceeds that are left from the sale and then go on your way to continuing the rest of your life without your ex-partner.

However, one time we highly caution this option is when children are involved. Often, it’s best to try and delay this sale where possible until your children are a little older or have left home. This will obviously depend on the age of your children currently, but it’s worth looking into the other options on offer. You could remortgage the property or arrange to finance from a mortgage programme. This will allow you to stay in your family home and keep your children safe and secure in a space that offers them the protection they need during this challenging time.

Speaking to Your Lender 

Don’t be afraid to speak to your mortgage lender or a mortgage broker in Stockport following the decision to split up. They’ll be able to advise you about your mortgage after divorce and discuss the various options on offer. Remember, these professionals are used to dealing with people at every stage in their lives, and are here to support you during the ups and downs. You won’t be the first or last person in their office going through a divorce, so don’t be ashamed to make an appointment to talk to them. They may be able to offer you a paid holiday, which can help you during this time. You can then discuss long-term solutions, but remember that you’ll still need to keep paying off the property during this time. Make sure you don’t risk your home being repossessed at any time, which is a risk if you and your ex-partner miss payments.

Protecting Your Home 

If your ex-partner is the one who is remaining in the home and is going to be the sole owner from now on, you may be wondering if you can stop them from selling the property. You can consider registering for a Notice of Home Rights, which is a temporary solution for this issue. It will allow you to live on the property until your divorce is completed, and the court settlement is also finished and agreed upon. A continuation order can be used if there is an issue with agreeing on who is staying in the property, but hopefully, it won’t get to that stage between you and your ex-partner.

Buying Out Your Home 

For anyone who is lucky enough to be in a good financial position during a divorce, you may want to think about buying out the other person. You’ll have to prove to a mortgage advisor in Stockport that you are able to afford the payments by yourself, which is one of the top reasons this option isn’t used in many situations. You can’t remove the other partner from the mortgage deed until you are able to prove your finances are in good shape for the payments. You could also consider taking out a larger loan to continue with this process, as mortgages in Stockport may not be appropriate for one person to pay by themselves. Make sure you aren’t putting too much pressure on yourself if you do go down this route and that you won’t end up in a worse financial situation further down the line.

There are many options when it comes to divorce and mortgages, and it’s all about working together to try and find a solution that works for both of you. Following this process, you may need to think about taking out a new mortgage for yourself on your next home. For more information about this process or anything we’ve discussed here today, contact our team, who will be happy to guide you through the ins and outs of mortgages during a divorce. 

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