Mortgage Advice in Derby after Divorce / Separation

It is very sad when you and your partner decide to call it a day. When you have made joint financial commitments unwinding that side of things does not always run as smoothly as you’d hope.

Here are three main questions that we get asked on divorce and mortgage advice on a regular basis:

How do I remove my ex-husband/wife from my mortgage?

Obviously, when you buy a home together you don’t do so with the intention of splitting up in the future but it is a massive financial commitment and making changes to your mortgage further on down the line is not always easy.

When there are children involved, quite often it’s the mum that stays in the property but regardless of gender, there may come a time that whoever is residing in the property wants to take over the mortgage in their own right. 

The fact that you may be able to demonstrate you have been paying the mortgage without any help from your ex, does not change the fact that at the point of application you bought the property jointly or, in other words, in the event of mortgage arrears there are 2 people the lender is allowed to pursue.

Before removing a party from a mortgage the lender has to be sure that the remaining applicant has the means to be able to 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 indeed your 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, we still may be able to help you. Coming to us and receiving Specialist Mortgage Advice in Derby, could give you that little boost that you need to get the ball rolling.

How do I remove my name from my ex-partner’s mortgage?

If by chance, you and your partner do split up and leave the property in question then you remain responsible for mortgage payments. Even if it’s an agreement between you and your ex that they will make all the payments.

If you are sending your partner money each month, you should keep an eye on your own credit report to ensure that they are paying the mortgage because if they default it will impact your own score.

If you are still connected to an old mortgage then the payments for that will be taken into account if you are looking towards buying a new home and ultimately lenders might not lend as much as you might like.

Buying a home with anyone is a risk to it’s best that you plan ahead for as many outcomes as possible, unquestionably it’ll be impossible to plan for all scenarios as there are too many factors and variables but if you do fall into hardships then getting Specialist Mortgage Advice in Derby could prove extremely beneficial.

Can I have two mortgages?

The answer to this one is usually yes. Lenders and their credit scoring systems take many factors into account before they offer you a mortgage.  On-going financial commitments are just one of these. The mortgage payment you hold with your ex will need to be inputted, alongside any other credit commitments you may have.

Once we’ve keyed all this in for you our system 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. Just remember it’s all about risk as far as lenders are concerned. They want to avoid repossession situations at all costs.

Date Last Edited: December 6, 2023