Divorce can be tough, and sorting out a mortgage afterwards might feel like just another mountain to climb. Whether you’re thinking about buying a new place or remortgaging the one you’re in, we’re here to tell you it’s completely doable with a bit of planning and the right advice.
What Financial Challenges Come Up After Divorce?
Divorce changes a lot — your income, your expenses, and sometimes your credit. These things all matter when you’re trying to get a mortgage, so let’s break it down.
Does Divorce Make It Harder to Afford a Mortgage?
If you’re now on a single income, that can make things trickier. But, if you’re getting child or spousal maintenance, some lenders will count that as part of your income — as long as you’ve got proof, like a court order or a track record of payments.
Then there’s the whole joint debt thing. Maybe you’ve still got loans or credit cards you shared with your ex. Until those accounts are closed or transferred, they’ll still affect your credit. That’s why it’s key to tackle these debts early.
What Should You Do About Joint Mortgages and Debts?
If you and your ex shared a home, figuring out what to do with it can feel overwhelming. But don’t worry, there are options.
What Are the Options for a Joint Mortgage?
- Selling the Property: This is often the easiest option. You sell up, split the equity, and move on. It’s a clean break, especially if neither of you can afford the mortgage solo.
- Transferring the Mortgage: Want to keep the home? You can refinance to take your ex’s name off the mortgage. Just be ready to show the lender you can afford it on your own.
- Co-Ownership: Sometimes, especially when kids are involved, couples choose to keep co-owning the property for a while. If you go this route, get everything in writing to avoid headaches later.
How Do You Handle Joint Debts?
Joint debts don’t just disappear after a divorce. Close shared accounts or transfer balances into individual names as soon as you can. If you’re unsure how to approach this, a solicitor can help you sort it out.
Should You Look at Specialist Lenders After Divorce?
If your financial situation isn’t straightforward, you might need a lender who’s used to working with people in your shoes.
Why Might a Specialist Lender Be a Good Idea?
Specialist lenders tend to be more flexible. They’ll often accept maintenance payments as income and might be more understanding about less-than-perfect credit. If you’ve been asking yourself, “Can I get a mortgage with bad credit after divorce?” the answer is likely yes — with the right lender. This is where a good broker can be a game changer.
How Can You Boost Your Chances of Getting a Mortgage?
There are some simple steps you can take to make yourself more attractive to lenders. Here’s what we recommend:
1. Have You Checked Your Credit Report?
Start by giving your credit report a proper look. If there are mistakes or lingering debts from your marriage, sort those out. Paying everything on time from here on out will help boost your score.
2. Is Your Income Steady?
Lenders like to see stability. Whether you’re employed, self-employed, or relying on maintenance, make sure you’ve got a few months of consistent income to show them.
3. Can You Save a Bigger Deposit?
The bigger your deposit, the better your chances. It shows lenders you’re serious and reduces the amount you’ll need to borrow.
4. Have You Thought About Professional Advice?
This is where mortgage brokers really shine. We can find you lenders that suit your situation and take a lot of the stress off your plate.
5. Could a Guarantor or Joint Borrower Help?
If your finances are tight, having a family member act as a guarantor or apply with you could make all the difference.
What Do Current Market Conditions Mean for You?
Are Interest Rates Going to Affect Your Budget?
Interest rates move around a lot, and they’ll definitely impact how much your monthly payments are. Talk to your broker about whether a fixed-rate or variable-rate mortgage makes the most sense for you.
What Costs Should You Plan For?
Remember, there’s more to buying a house than just the mortgage. Factor in things like legal fees, stamp duty, and surveys when you’re working out your budget.
How Do You Stay Sane During the Process?
Why Should You Take Your Time?
It’s easy to feel rushed after a divorce, but don’t let anyone push you into decisions you’re not ready for. This is a big step, so make sure you’re confident about your choices.
How Can You Plan for the Future?
Think about what you need not just now, but five or ten years down the line. Fixed-rate mortgages might give you stability, while variable rates could work if you’re expecting financial changes.
How Can a Mortgage Broker Make Life Easier?
We get it — this stuff can feel overwhelming. That’s where we come in. We specialise in helping people with tricky financial situations, like divorce, find mortgages that fit their needs.
Why Work with Us?
- Personalised Advice: We’ll take the time to understand your situation and match you with the right lenders.
- Access to Specialist Lenders: We’ve got connections with lenders who get it.
- Support from Start to Finish: From figuring out your budget to getting the keys to your new place, we’re here to help.
Ready to Take the Next Step?
Getting a mortgage after divorce might feel like a big challenge, but it’s totally doable. By tackling joint debts, boosting your finances, and getting expert help, you can set yourself up for success.
If you’re ready to explore your options or have any questions, get in touch with us. We’re here to make the process as smooth as possible.