What happens to a joint mortgage during a separation?

When you and your partner decide to end a relationship, it is never easy, especially if you have made a joint financial commitment.

Times like these our mortgage advisors in Liverpool will take the challenge of these specialist mortgages, aiding you whether you’re moving home in Liverpool or looking to take out a remortgage in Liverpool on the property once it’s in your name.

Below here are the three primary mortgage-related questions that our mortgage advisors in Liverpool get frequently asked when it comes to divorce and separation mortgage advice in Liverpool:

  • How do I remove my ex-husband/wife from my mortgage?
  • How do I remove my name from my ex-partner’s mortgage?
  • Can I have a second mortgage?

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

Of course, nobody goes into joint name home buying to split up, but these things are known to happen sometimes and to try to make changes to such a substantial financial commitment can prove challenging.

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.

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. In any case, this is to fully ensure you can 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 lenders, so if your existing Lender says no we may still be able to help you out.

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

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.

Agreeing with the ex makes no difference either until you get officially 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 Liverpool 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 whom to apply for a mortgage agreement in principle with, we’ll consider this.

Can I have two mortgages in Liverpool?

Depending on your circumstances, this is entirely possible. Lenders’ credit scoring systems analyse a significant number of factors before they offer you a mortgage.

One of these, of course, is ongoing financial commitments. In any case, this includes the mortgage payment you currently hold with your ex; alongside any other obligations, you may have.

Once we’ve taken all this information and uploaded it 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 the outset and the amount of deposit you’ll be needing to put down.

Moving on from previous joint financial commitments can be quite tricky. 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.

Mortgage Advisor in Liverpool

Date Last Edited: September 20, 2024