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Are 'divorce mortgages' a sign of the times?

As you may or may not know there are two peak months a year where divorce proceedings are at an all-time high and these are September and January.

 Both months correspond with children going back to school, following a lengthy holiday break, where families spend a lot of time together (or should do) and may have spent a bit more than they should on presents and/ or holidays.

Whatever the reasons that trigger couples to contact a solicitor, there are now mortgages that specifically target these peak bust-up months which are being touted as ‘Divorce mortgages’. Mortgage lenders recognise that divorce is expensive and can leave both parties in financial straits when the family home is either sold or given to one party, who often is unable to afford the mortgage payments alone.

There are now mortgages available to recently divorced couples whereby the lender take child maintenance into account and also ad hoc income when assessing affordability. One such lender is the Ipswich Building Society who have designed a Divorce Mortgage Programme to provide support to those who would normally struggle to get a mortgage – “mortgage misfits”.

The lender is offering all residential mortgages to divorcees (who work full or part time) whereby income from child maintenance is taken into consideration when assessing affordability. These payments have to be confirmed by the CSA and have a minimum of 5 years. Other lenders who are tapping into the divorce market include Halifax, Barclays and Metro Bank who all allow for confirmed maintenance payments.

This is very encouraging news for divorcees as it can still be extremely difficult to secure a mortgage post-divorce and should help reduce the stress at a very traumatic time. With the most recent figures from the Office for National Statistics showing that 130,473 couples divorced across the UK in 2013, this issue clearly affects a lot of people.

This is an issue which affects both parties, the parent who has a home they can’t pay for and the parent paying child maintenance who also finds it difficult to borrow. It is also important to stress that if the original mortgage falls into arrears then there is a risk that both parties could see their credit rating dive.

For more information on this issue or anything relating to divorce then please contact our specialist solicitors on FREEPHONE 0800 1979 345.

IF you live in Macclesfield, Buxton, Holmes Chapel or surrounding areas and require divorce law advice or to discuss your separation in more detail please call one of our specialist solicitors now or complete our simple enquiry form.