How to handle your mortgage during a divorce or separation

 

Going through a separation or divorce does not mean you can’t get a mortgage but there are more parts of the process that you have to be prepared for.

 

Key requirements for a separated or divorced mortgage application are:

  1. The first and most important thing to do with any mortgage is to continue making repayments – even if you are no longer living in the home. 

    In a joint mortgage, both you and your partner are responsible for the repayments and a mortgage company is quite entitled to expect these to continue. Moving out of the home does not remove you from your legal obligation to keep up repayments.

  2. Get in touch with your mortgage lender as soon as possible and update them on your current circumstances – especially if there are issues with repayments. Of course, not all splits are amicable, and it might be that your partner is now refusing to pay their share on a joint mortgage or there is some other problem with your repayments. Don’t wait until mortgage repayments start being missed – get in touch with your lender straight away and explain the situation. Lenders who don’t know why the repayments have stopped can’t do anything to help – and the vast majority will appreciate early notice of any potential problems.

  3. If the breakup of your marriage, partnership or long-term relationship is amicable then this can go a long way to making things easier when dealing with a joint mortgage. Both parties can decide what they would like to do with the home after a split and basically, you have three choices:

    i)  Taking over the mortgage yourself.
    ii) Being bought out of the mortgage by your ex-partner
    iii) Sell up and go your separate ways