Mortgage Advice for Newly Divorced Couples
Getting a divorce can be an extremely stressful time, especially when it comes to thinking about your existing mortgage. You will need to make some important decisions on the best solution for you and your ex–partner, regarding your property.
When agreeing on a joint mortgage, it may be a better solution to keep one person’s name on it for two reasons:
1. The person who has to leave the household may be entitled to take out another loan to buy a new property. The likelihood of this is higher than if they were still bound by name to the previous property.
2. The person who keeps the original property can arrange their own finances, without relying on the other person for their share of payments.If a mortgage is in one person’s name, then they are solely responsible for all payments.
If a mortgage is in joint names, both parties are responsible for payments. Therefore, should one person stop paying, the mortgage lender can demand all costs from the other person. If that person also refuses to keep up with payments, there is the risk of becoming evicted by the mortgage lender.
In Northern Ireland, you may be entitled to receive back mortgage payments you have contributed to the property, however, there are a number of terms and conditions to meet in order to qualify. It may be best to contact your bank for more details on whether or not you will be eligible.
The only way someone is able to get their name removed from the mortgage is to sell up, but an arrangement with the bank would need to be made prior to this. There is the option of selling to your ex–partner, but they would need to take on a brand new mortgage or pay off their existing one initially. If the home is in your ex–partner’s name, you could still be entitled to a share of the property, but mortgage advice from a lawyer would be required as this can become complicated.
Financial Foresight
If in any doubt, read more about our mortgage services or contact our mortgage advisers here at Financial Foresight.
Or book a free consultation with our Ballyclare mortgage branch.
