Mortgages After Divorce
When a marriage breaks down one of the biggest problem areas is finance. Each member of the couple has a feeling of insecurity immediately. Where, they wonder, will they live after separation and divorce? They will need to consider divorce mortgages - where the lender understands the situation from which the couple have come and does everything to help people make a new start.
A home, perfectly naturally, has a feeling of security, but as soon as that security is under threat, emotions are raised. A home is where you will have been with your spouse, and possibly raised a family too. So when things go wrong, it is no wonder that people put up their defences. However difficult it will be the subject of finances will have to be discussed between husband and wife, and divorce mortgages will have to be raised.
It is important to ensure that current payments on the house are maintained: existing mortgage payments, house and contents insurance, endowment policies. Arrangements to cover these costs should be made immediately, as non-payment will lead to anger, resentment, and worse - a possible blot on credit ratings.
Emotions will be running high, but it is important to discuss financial affairs sensibly with a view to the future for both parties. Independent legal advice is the best way forward as each seeks to secure a mortgage after divorce. If circumstances ended up meaning a court had to decide the division of finances then it may mean one party gets more money than the other, but both parties should realise that there is only so much to go round. Financial stress can be such that during separation and even after divorce, couples still consider living under the same roof to avoid the need for another mortgage after divorce.
If there is enough money in the pot to buy two houses, then mortgages after divorce would not present a problem, and a court would primarily be concerned about the welfare of any children.
However, if there is not enough money to fund two post-divorce mortgages, the court will of course consider selling the original home and dividing the proceeds as it sees fit. Again, the primary consideration will be for the needs of the children. A home has to be provided for any children, whatever the hopes and needs of the other parent.
It is unlikely that either party will 'lose everything' as the court has wide powers in aportioning assets. However, it could also rule that the deeds of the house are transferred in full to one party.
One or both parties can easily be left searching for a mortgage after divorce. It is very difficult thing to have to do at a time of great stress. Some building societies specifically provide divorce mortgages. Sometimes one party appears to take charge of financial affairs, and this can leave the other party feeling vulnerable and unsure. Mortgage brokers can help in this situation. Divorce mortgages cater for the fact that you may need to minimise your monthly mortgage payments until finances are under control. Divorce mortgages can provide additional features and benefits which will not be available when you choose a mortgage from a standard range.
