First Home Fund

Mortgage Advice After Divorce or Separation

Divorce for most people, is a very difficult time. Not only are the whole family separating, even the extended family, but in the majority of cases the marital home has to be sold. This means for many that they have to ‘get on the property ladder’ alone and obtaining a mortgage can seem like a very daunting experience.

If both parties involved have a minutes of agreement in place this helps you going forward. This is where you agree the split of any assets, i.e. the marital home. You want to know how much equity is in the home and how much of that you will be entitled to.

When applying for you mortgage the bank wants to know how much of a deposit you are putting down, the value of the property you are buying and your affordability. They will want proof of your income and what your expenditure will be going forward. They will also take into consideration any debt that you have as this is an ongoing expense.

In the early stages whilst you await your marital home being sold and everything put in place, it is worthwhile keeping an eye on the property market. This will give you an idea of what is out there and what the prices are. You should also check your own affordability, work out what you could afford each month, taking into account all monthly expenses that you will have.

After the separation many people find themselves in unknown territory; they may not have taken much to do with the household bills before, so it is imperative you take into account all outgoing costs. We can help you with this, but if you’re interested in finding out yourself, then accessing your last three months bank statements and checking what you’re paying will help.

Mortgage Adviser – Divorce & Separation

Once you have established what you can afford to pay each month for your mortgage and what your deposit is going to be, you need to look at what term you’re going to take your mortgage out over.

At this stage your mortgage advisor will take your age into consideration and estimated retirement date. A good mortgage adviser will help you obtain your mortgage, but will always want to ensure you keep your home and can afford the repayments, even if your circumstances change. Your mortgage adviser will also consider which type of mortgage would be best for your given your personal and financial circumstances and they’ll know which lenders would be most favourable to your needs.

Your mortgage tends to be your biggest monthly expense and once you are separated you’re solely responsible for it. Whilst you’re responsible to repay your mortgage, once you near the end of the mortgage term and realise that you will be the sole owner of the property, you will have a massive sense of achievement. You will also be able to live rent/ mortgage free and have built wealth in your property which can be inherited by family, one day.

Mortgage Advice Support

This article was created by Fiona, customer service adviser at Mortgage Advice Scotland, who wanted to share her experience of obtaining a mortgage after separating from her partner.

Fiona’s top tip is “Seek professional mortgage advice. Not only will you be far more likely to save money, but the hassle-free process and having somebody to rely on who’s “fighting your corner” really helps too. As someone who has done all the above I do not regret it. I will soon be mortgage free and not paying someone else’s rent.”

If you would like free mortgage advice in Scotland from our friendly and qualified team of professionals, please call on 0800 112 3690.


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