Yes, the divorce rate for heterosexual couples in England and Wales is the lowest it’s been since 1971. However, if you’re going through one, you’ll know that while it can be traumatic for some and liberating for some, we can all agree they can be incredibly messy. The difficulty is only amplified when you and your ex-spouse have a joint mortgage on your house that you need to sort out when the dust settles. To help you understand how your mortgage is going to play out after your divorce and what your options are, we’ve put together this useful guide.
Make Your Repayments
No matter what the circumstances, you cannot stop making your mortgage repayments. A divorce isn’t a get-out-jail-free card, even if you aren’t living in the house any longer. A joint mortgage means both you and your ex have a responsibility to keep up with your repayments.
Let Your Lender Know Your Situation
Updating your mortgage lender know the changes in your circumstances as soon as possible is crucial. This is especially important if there are any problems regarding your repayments. Your lender will greatly appreciate early notice in the event that your ex refuses to make their share of the repayments.
What Your Options Are
When it comes to owning a joint mortgage, the more amicable your divorce, the better. It’ll make moving forward that much easier. However, in any case, here’s what you can do with your mortgage after your divorce.
Buy Your Ex Out
If your financial situation isn’t precarious, you could consider becoming the sole owner of the property. This means that you will be making all the payments and will have to buy out your ex. For that, you’ll need an updated and independent valuation of your house in order to determine it’s worth, as well as the proportion of the property your ex is entitled to.
Have Your Ex Buy You Out
Of course, the reverse situation is also a possibility. You may want your ex to buy you out and give you your share of the property after you two agree on a percentage. Of course, if you two cannot settle on a percentage, you will need to resort to court for mediation.
Once you’ve been paid off and your share of the mortgage has been assumed by your ex, you will no longer be responsible for any further payments. You can use the payout to finance a new home.
Sell and Move On
Of course, you can go a completely different route and sell the house altogether. This is easier for couples with no young children to look after. In order to do this, you both will have to agree on a share of the proceeds after you sell and repay the mortgage.
If you’re looking to purchase a new home after divorce, you should consider Sterling Capital .
The company is a leading mortgage broker and advisory firm based in London. Its team of experts have years of experience working with top-rated lenders and providers in the industry.
Get in touch with them for their help to buy scheme service, remortgages, or buy to let mortgage service. Visit their website make an enquiry! Or call them at 0207 822 2390.