Mariage Split - Joint Mortgage Questions

Thmas_Covenant

We currently have a joint mortgage, with me working, and my wife not in employment, but looking after our young children (obviously a job in itself).

We are seperating, and I wondered about the financial impact. I am jointly liable for the mortage at present, but in practice pay it all, but I think my wife, if I leave, may be entitled to Mortgage Interest Relief (after 6 months) as well as Income Support, Council Tax Benefit, Child Tax Credits etc. We have joint ownership of the house and own most of it, but have a significant mortgage debt left (£90k).

My question is, can I leave, secure another mortgage and buy an appropriate house so we can share custody of the kids 50/50, and my wife can benefit from benefits? Obviously I can't pay mortgage, council tax, bills etc for 2 houses, as well as maintaining the kids, and we want the kids to stay in the family home and not cause them more upheaval.

Any advice much appreciated - I want to keep solicitors out of it as far as possible.

pinkshoes

You can only have one residential mortgage in your name, so can't get another mortgage.

How much equity is in the property? Could you afford to buy your wife out, so that she could claim the relevant benefits and rent somewhere?

LittleMrsThrifty

pinkshoes wrote: »

You can only have one residential mortgage in your name, so can't get another mortgage.
QUOTE]

Really? What about those who have second homes in the country or a city crash pad?

Thmas_Covenant

pinkshoes wrote: »

You can only have one residential mortgage in your name, so can't get another mortgage.

How much equity is in the property? Could you afford to buy your wife out, so that she could claim the relevant benefits and rent somewhere?

I don't think that's correct - I have already got a mortgage in principle agreed. They just reduce my available salary by the annual cost of the first mortgage, so it reduces my lending capacity.

I could buy her out, but she wants to stay there with the kids - I suppose I could stay, yes - depends how reasonable she is.

mrsspendalot

She would probably only be entitled to help with paying the mortgage if she bought you out of the house, but that seems unlikely to be a possibility if she is out of work. I don't think she can claim benefits to help pay the mortgage whilst you are still liable for it. Ask on the benefits board for advice, there was a similar question asked on there the other day. I can't see how you will avoid a solicitors bill for something so complex though, unfortunately.

LittleMrsThrifty

It would be wise for you to visit a solicitor to establish what rights and responsibilities you both have. You can often get a free half hour appointment to establish your rights and responsibilities.

pinkshoes

Perhaps they've changed things then!?

I have a residential mortgage on a property that my ex lives in, (long story, but oddly it works for now!) and was told by my mortgage lender that I can't get another residential mortgage! I suppose if the total borrowed is no more than 4x your salary and each property has a suitably deposit, then that would work!

Could you not buy your ex out of her share, then "rent" it to her?? She could then claim housing benefit etc...

claretmatt

There is every possibility that your wife would be entitled to benefits, although Mortgage Interest Relief was scrapped in 2000.

I would seriously consider whether the benefits that she may receive would

a) be sustainable owing to changes in the benefit system and

b) be able to cover the costs of the mortgage, council tax, food, utilities, clothes.

I would suggest that you go to entitledto.com and enter the details for your wife as an individual to ascertain the levels of benefits she may receive. If this (plus maintenance) is lower than the household bills you believe she should cover then it may be problematic.

I would also be concious that the cost of living "could" continue to rise and assess the impact of the cost of the essentials to your wife.

You are entering unknown territory and one approach could be for you to rent for a short term period to see if the situation works for both of you.