No one plans a divorce or a separation when you are buying a house, however, they do happen and things can turn the other way and become complicated. One thing that may turn complicated is your mortgage commitments with your ex-partner. If things do get out of hand and you’re struggling to manage everything on your own, just know that your expert Mortgage Broker in Durham is here to help.
Here at Durhammoneyman, we have dealt with thousands of specialist cases over our 11 years of working within the mortgage industry. This includes helping our customers overcome their mortgage doubts through a divorce or separation and trying to help them remove their name or their ex-partner’s name off of their joint mortgage. When our clients reach out to us for help with their mortgage and their divorce or separation, we usually get asked the same three questions:
1. How do I remove my ex-husband/wife from my mortgage?
2. How do I remove my name from my ex-partner’s mortgage?
3. Can I have 2 mortgages?
It can be tricky trying to make changes to your mortgage, especially during a divorce or separation. You have to remember that both yours and your partner’s names are on the mortgage and you can’t just take one off like that.
The situation can get a little more complicated if there are children involved as there are the questions of who will live with the children and will it be in the current or a different home. We usually see that it is the mum that stays in the current household but it can be either. There may come a time that whoever is “in situ” wants to take over the mortgage in their own right. Sometimes, both parents may want a fresh start in new homes of their own.
You need to be aware that even if you are able to prove that you have been paying your mortgage payments without any help from your partner, it will not change that their name is still tied into the mortgage deal. Even if they have moved out and aren’t helping out with any of the payments, their name is still on the mortgage and you need to get it removed.
You can do this one of two ways. You can either go directly to your lender to ask about removing a name by yourself or get the help of an expert Mortgage Broker in Durham, like Durhammoneyman. Either way, they will have to be certain that the remaining applicant on the mortgage will be able to afford a mortgage on their own in the future. The way that this will be checked is through an affordability assessment, you will have to take one of these regardless of whether you have been keeping up with your mortgage payments or not.
Normally, during this point in the process, there is already someone who can step in and replace the ex-partner. This is typically a family member, friend or another partner.
You need to remember that every lender has their own unique way of assessing your affordability so don’t worry if your current lender says no. There are other options available, for example, you should approach a Mortgage Broker in Durham, like us who will try their absolute best to help you!
Removing your own name is similar to removing someone else’s, the basic ground rules apply for both. Firstly, both of your names are on the mortgage, so even if you decide to leave the family home, you are still responsible for any joint financial commitments you took out with your ex-partner. The only way to get your name off the mortgage is by going directly to your lender or with through the help of a Mortgage Broker in Durham.
The mortgage payments for your old property will be taken into consideration if you want to buy a new property in the future so it is important that you take this into consideration before making an offer. This is why we always recommend getting help from a professional Mortgage Advisor in Durham.
Before you make an offer in the future, you must consider that your mortgage payments for your existing property will be taken into account. This is why we advise that you get Specialist Mortgage Advice in Durham; you may have forgotten this and your income may have changed meaning that you can’t really afford a mortgage as of yet. If you apply and get declined, you could potentially leave a negative effect on your credit file.
You will always find that some lenders are stricter than others which will affect how much they will lend you. If you come to us for Mortgage Advice in Durham, we will take this into account when recommending the most suitable lender to apply for a mortgage agreement in principle with.
Yes, you can have multiple mortgages and even more than two if you want! Lenders and their credit scoring systems will take different factors into account when you apply for a second mortgage. One of the main deciding factors will be your current financial commitments. If you still have ongoing commitments and you fail the lender’s affordability assessment, you could potentially damage your credit score. This is why we always recommend that before you apply directly with a lender you should go to a Mortgage Broker in Durham.
A Mortgage Broker in Durham, like Durhammoneyman, can perform a search for you without damaging your credit file to check whether you will be able to afford a mortgage. We can calculate your maximum borrowing capacity which can allow us to get an idea of your budget and how much your monthly mortgage payments are going to be on top of your current financial commitments.
Having an expert Mortgage Advisor in Durham by your side through every step of the way could prove highly beneficial. Moving Home can already be stressful enough! An Advisor will be available to answer any questions that you may have along the way and be recommending you with the best route to take at all times. We want the best for you through these tough times! Contact your local Mortgage Advisor in Durham at Durhammoneyman today and receive a free mortgage consultation!