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What happens to your Mortgage when you are going through a divorce or separation?
Divorce or separation from a partner is always a daunting experience. However, if you and your ex-partner have finally decided to part ways and bear a joint mortgage, you would be worried or confused about how to work around a solution.
Here are three main questions that most ex-couples thinks of while receiving Divorce & Mortgage Advice in York regularly:
- How can I remove my ex-husband/wife from my Mortgage?
- How can I remove my name from my ex-partner’s Mortgage?
- Can I have two mortgages in York?
To help you understand the basics of working around a solution, we’ve put together the following guide to make things a little clearer and, hopefully, a little easier for all concerned. Often the case gets complicated if there are kids involved. It’s often the mum who stays in the property, but there may come a moment that whoever is in position wants to take over the Mortgage in their own hands.
When you are trying to remove your ex-husband’s name from the Mortgage, you’ll need to provide sufficient evidence that you’ll be able to meet your mortgage payments successfully on your own. Lenders are instructed to review your salary and your disposable income and then decide if you are financially strong enough to manage the load of instalments or not.
Similarly, the lenders will evaluate your ex-partner’s affordability and decide whether he’ll be able to afford mortgage payments forward or not. So a thorough check will be performed on both parties regardless of whether you have stayed up to date with your mortgage payments in the past or not.
Quite often in these situations, someone can intervene to replace the ex-partner such as a family member or indeed your new partner. You can also reach out to Mortgage Lenders for help.
How do I remove my name from my ex-partner’s Mortgage?
If you decide to remove your name from the Mortgage, it’s a more similar process to how you removed your ex-partner’s name. But since you choose to vacate yourself from the property and move on, it might create difficulties for you at times.
This might need consent from your partner that you want to call off your name from the Mortgage. Your lender will also perform an affordability check on your partner to find out if he can afford the future mortgage payments or not.
Once you get given consent to remove your name from the Mortgage, you’ll undoubtedly start looking for a new house of your own. The mortgage payment for your old property will be considered if you want to buy a new property in the future. Hence, it’s essential in these instances that you take Specialist Mortgage Advice in York before making an offer. You’ll find some lenders as more generous while others are strict.
Can I have two mortgages?
The answer to this one is yes, you can. Lenders & their credit scoring systems consider many factors before they offer you a mortgage. Continuous and timely financial payments are just one of these. The lenders will scrutinize how much you are contributing to the existing mortgages and whether you will be able to manage additional mortgage payments on top of them or not.
They will also consider the risk factor, for instance, how likely your home gets repossessed because you could not afford your mortgage payments. They will not take any risks either. The monthly payment of the Mortgage you still hold with your ex will need to be input alongside any other loans & credit commitments you may have.
Once we have keyed all this in for you the various Lenders’ systems will confirm the maximum amount you can borrow so you know your budget at the outset & how much deposit you will need to put down.
Date Last Edited: December 22, 2023
