Divorce and mortgages
There is always a lot to consider when going through a divorce, and deciding what’s best to do with your home can be tricky. If you’re worried about how your divorce might impact your home and mortgage, don’t fear! There are options available to help with getting a mortgage after divorce and here’s what you can do:
If the mortgage on your home is in your partner’s name only, you may be able to make a claim for a share of its value, if you can prove that you have paid towards the mortgage and/or improvements to the property – make sure you get professional advice from a solicitor if you need to go down this route!
Sorting out a joint mortgage
If you and your partner have a joint mortgage, there are several things you can do with your home when you separate:
- Sell your home: the money raised can be put towards buying a new home for each of you, if you can afford to do this.
- Apply for a single mortgage: one of you can take on the mortgage and remortgage the property to buy the other out.
- Transfer ownership: If you have children, you can transfer part of the property’s equity to your partner. When the property is sold, you will then receive a percentage of its value.
Getting a mortgage on your own
When applying for a single mortgage, you will need to demonstrate to mortgage lenders that you can afford the mortgage by yourself, and keep up your monthly repayments, which we can help you with!
If you have children, be sure to check whether you’re eligible for any additional benefits, as these payments can be used to support your mortgage application.
Help buying a home
If you can’t afford to take over your existing mortgage by yourself, there are options available to help you get back on the property ladder:
- Help to Buy: A government scheme that aims to help people who are struggling to buy a home. There are two options, Shared Ownership and Equity Loan:
- Shared Ownership allows you to buy a share (between 25% and 75%) of a new or existing property
- An Equity Loan enables you to borrow up to 20% towards the purchase cost of a new home, so you will only need a 5% deposit and a 75% mortgage.
- Guarantor mortgages: A parent or close family member can guarantee either a percentage of, or the entire mortgage debt. However, as they will be liable for any missed repayments, they will need to either:
- Prove that they can cover both yours and their own mortgage
- Have the majority of their mortgage paid off
- Have a number of years left in employment ahead of them.
- Family Springboard mortgages: Allows a family member to provide 10% of the purchase price as security. If you keep up your repayments, they will get all their money back with interest.
Specialist divorcee mortgages
As professional mortgage advisors we aim to make the process of getting a mortgage after divorce as easy as possible. Our mortgage separation advice will help you discover what your options are and find the right divorcee mortgage deal for your needs.
If you decide that a single mortgage is the right decision for you, we will also handle your entire application, removing the stress and hassle form you.
Bridging finance provides a speedy, short-term solution for individuals looking to quickly complete the purchase of a property. Bridging loans are unsurprisingly popular with landlords and property developers looking to either fund a property investment, buy to let or development. But, they are also becoming increasing popular with homebuyers wanting to unblock property chains and secure their dream homes.
What are the advantages to bridging loans?
There are a number of potential benefits to using bridging finance for your short-term finance needs including:
- No credit checks
- Quick turnaround time (often arranged within 24 hours)
- Daily interest rate
- No early repayment charges (on some schemes)
Lenders will however require:
- A completed application form
- Proof of address and identification
- A copy of your buildings insurance policy schedule – We can of course arrange all of this for you!
Is there an alternative to bridging finance?
If you decide that a bridging loan isn’t the right choice for you, then there are other alternatives:
- High LTV Mortgage: A High loan to Value Mortgage with no early redemption charges, should enable you to make a large repayment without incurring a penalty.
- Let to Buy Mortgage: If you have found your dream home but can’t wait to sell your current property, or are struggling to get the price you want for it, a Let to Buy Mortgage will allow you to buy your new home, whilst you’re waiting to sell your existing one.
Where can I get a bridging loan?
If you are considering a bridging loan, make sure you have a clear repayment strategy in place first, which might include; getting a residential or buy to let mortgage or selling the property altogether.
As expert mortgage brokers we can help advise you whether a bridging loan is the right solution for your individual needs and circumstances, or if an alternative finance option would be more suitable.
Some of these products are not regulated by the Financial Conduct Authority
Moving in together is one of the most exciting things you’ll do, but it can be stressful if you do not plan ahead. However, we have compiled our top tips to ensure that you make the most of your experience. You only get to move into your first home once, so make sure you get organised and enjoy it – you’ve earned it!
Put together an essentials box filled with everything you’ll need for moving in day including; cleaning products, toilet roll, coffee, teabags, sugar and snacks for your helpers – don’t forget the kettle!
The essentials – It won’t be much fun without them!
One of the first things you’ll need to do is set up is your gas, electric and water. Make sure you arrange this as early as possible, as you will want to have everything up and running from day one.
You should also take a meter reading as soon as you move in to make sure your bills are correct, otherwise you could end up paying for the energy used by the previous occupants!
If either of you have owned a property before, you’ll also need to settle any outstanding balances. Just take a final meter reading before you move out and call your providers.
Tell your bank
The last thing you’ll want to deal with is a new card or PIN number being sent to the wrong address! If it was used for fraudulent purposes you would also not be covered by your bank, so advise them of your new address as soon as possible.
The easiest thing to do is to compose a standard letter, which we have put together for you here. Your bank statements are also a great place for noting any other companies you’ll need to inform.
Redirect your mail – it’s hard to remember everyone who has your address!
You can easily redirect your mail online via the Post Office. There may be a small cost for doing this, but it’s a small price to pay to avoid becoming a victim of fraud!
Update your online accounts
Ensure you add your new address to your online shopping accounts as soon as possible, otherwise someone else might benefit from your recent purchases!
Set up your television subscription (don’t forget your TV license!), broadband, landline and mobile phone contract in advance. You will often need to wait a few weeks to have these installed, so we recommend booking this work in as soon as you receive your moving in date.
Electoral roll – make sure you’re registered
Credit providers use the electoral roll to measure your eligibility for credit, so make sure you are firstly registered, and that your details are up to date!
Don’t forget your car
Your car insurance, V5C vehicle registration certificate and driving license all have to be updated – preferably before your move.
Be sure to also tell your insurer how your vehicle will be parked at night, as you may be able to save yourself some money! It could work the other way, but not notifying them in time could result in your claim being turned down, if you need to make one.