If you unfortunately reach the point where you are faced with divorce or separation with your partner, it can be stressful. This can only be heightened when you factor in that you may have a joint mortgage together, as well as other finances.

In this handy mortgage guide, we have put together a short list of the frequently asked questions we receive when customers are in this situation and need to make mortgage arrangements.

Do I need to keep paying my half of the mortgage?  

No matter what you currently have going on, you will always need to keep on paying your mortgage, even if for the time being you are living somewhere else.

You agreed with your now ex-partner to take on equal responsibility of your joint mortgage. This means that until the mortgage is paid off, you are both equally liable for any debts, no matter what the situation is or where either of you are living.

If you do not pay your mortgage on time, you can cause some serious harm to yours and your ex-partners credit history. Likewise if your ex-partner fails to make payments, you will be affected.

You also run the risk of your home being repossessed if you do not maintain your monthly repayments on your mortgage or any other debts that you have secured on it.

When should I inform my lender?  

As soon as your separation is official, you need to get in touch with your mortgage lender as soon as you possibly can and let them know, especially if meeting your monthly mortgage payments is going to be difficult.

What are my options?

1. Sell The Property

If it is decided between the two of you that you should each move out of the property, sell up and pay off your remaining mortgage balance, any remaining equity will be distributed between you both.

It is entirely up to debate who gets what from that remaining equity.

If you move out and are looking at your options for purchasing a new home, under your sole name, our dedicated team of mortgage advisors in Sunderland are on hand to talk to you all throughout the week.

They will help to recommend the best mortgage deal to you, providing a service of fast & friendly mortgage advice in Sunderland. 

2. Continue to Make Those Payments

If you separate but end the relationship on good terms, some decide to remain within the property and continue paying off the remaining mortgage balance.

This can prove to be a beneficial route to take, especially if you have a fixed rate mortgage term.

3. Stay in The Property 

If you end up deciding that either you or your ex-partner will remain living in the property, whoever is currently residing there will have to take out a remortgage in Sunderland, in their own name.

As the sole owner of the property, if there is still an outstanding mortgage to pay off in both you and your ex-partners names, you will need to take out a Remortgage.

This new mortgage that you have will be in your sole name, which means the lender will have to reassess your affordability.

Can I get a second mortgage?

Depending on the circumstances, you may be able to have more than one mortgage. Lenders each have different credit scoring systems and when you apply for a second mortgage they will analyse various factors.

The main factor that they will look at is if you have any current financial commitments. Before you apply for a mortgage, you need to be certain that you can afford a second mortgage.

The reason for this is that if you do end up being declined for a second mortgage, it could have a large negative effect on your credit file.

You will be pleased to know that our team of mortgage advisors here at Sunderlandmoneyman are able to help you out with credit searches that will have less of a impact on your credit file.

Once we have put together the necessary information, we will then be able to give you an idea of the maximum mortgage amount you could borrow.

This will help you to gain a better understanding of your budget and what you can expect for your monthly mortgage payments, in addition to all of your current financial commitments.

Moving on from your current financial commitments can be quite a difficult process, and this is why having an expert Mortgage Advisor in Sunderland to help you through each step will be very beneficial to you and your case.

Moving home in Sunderland can be stressful, especially when factoring in divorce or separation. Get in touch with a dedicated Mortgage Advisor in Sunderland today, and we will look at how we are able to help you.

What if I am in negative equity? 

If you get divorced while the home that you both own jointly is in negative equity, it can be particularly difficult to sell the house and pay the remaining mortgage balance off.

You might have to divide the debt that is remaining between the two of you or come to an agreement with your current mortgage provider. 

Date Last Edited: 13/01/2023