Your mortgage options during a divorce
Divorce can be an incredibly stressful time for couples and the financial impact it can have only adds to the pressure. Unfortunately, many family lawyers are predicting the stresses of the last few months to result in a post-lockdown divorce boom.
For couples who own their home, one of the biggest decisions they face is what to do with the property.
Options available to you
One option is to put the house on the market and split the proceeds of the sale between you. However, it’s important to remember you will need to cover the costs of selling up, including estate agent and solicitor fees. You’ll therefore need to ensure you have enough equity in the property to make this option worthwhile.
If you don’t own much equity or one of you wants to stay in the property, another option is for one partner to buy out the other. Before doing so, however, the partner remaining in the home will need to weigh up whether they would be able to get a mortgage on their single income, and whether they could cover the costs of running and maintaining the property.
We understand that going through a divorce can be a difficult time, which is why we’re here to explain the financial options available to you and help you make the right decision, so please get in touch.
As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments. You may have to pay an early repayment charge to your existing lender if you remortgage.