Taking on Mortgage After Divorce - Options?

Norrislover

Good Afternoon All

Sadly my wife and I have decided to divorce but thankfully we are still good friends so please no "revenge" related responses to this question

Obviously our mortgage is joint and I am looking into the options I have regarding taking the mortgage on by myself. As there is negative equity, selling is not an option for a few years. Ideally I would like to rent the property out but I'm unsure of what happens with my existing mortgage. If I had decided to stay in the property myself and simply take on the mortgage am I right in saying that I would be reassessed as a sole person or would they take into account my past few years history of payments?

Similarly, changing to a buy-to-let mortgage would be great, but what requirements would I have to fulfill then? I know the rental value is at least double the mortgage payment so would this help?

Any suggestions at this stage would be greatly appreciated!

Thanks all

Wh05apk

You are correct they would assess you as a new application, your deal etc would stay the same though.

Depending on the lender, you would need to ask fo consent to let if you wanted to let the property, however some will not agree to this if your ltv is above a certain level, so you would need to contact the lender.

I would get the mortgage put into your name, then approach them to get consent to let, asing for both together could spook them!

Simon_gloster

Norrislover wrote: »

Good Afternoon All

Sadly my wife and I have decided to divorce but thankfully we are still good friends so please no "revenge" related responses to this question

Obviously our mortgage is joint and I am looking into the options I have regarding taking the mortgage on by myself. As there is negative equity, selling is not an option for a few years. Ideally I would like to rent the property out but I'm unsure of what happens with my existing mortgage. If I had decided to stay in the property myself and simply take on the mortgage am I right in saying that I would be reassessed as a sole person or would they take into account my past few years history of payments?

Similarly, changing to a buy-to-let mortgage would be great, but what requirements would I have to fulfill then? I know the rental value is at least double the mortgage payment so would this help?

Any suggestions at this stage would be greatly appreciated!

Thanks all

Great name by the way.....is that your ex or newie!!!!

You wont be able to get a buy to let mortgage. You will, depending on the lender, get consent to let. Some do this up to 120%. If you are tied in they may allow this to continue, if you have no early repayment charges you will lose your existing rate and go onto consent rates.

If you look to take it on your own as a residence, the lender may insist on 10% equity at their valuation, as Wh said, you would be able to keep your existing rate.

Bringing the debt down is your highest proirity. If you cant get CTL or reduce the debt then its game over short term.

Norrislover

Wh05apk wrote: »

You are correct they would assess you as a new application, your deal etc would stay the same though.

Depending on the lender, you would need to ask fo consent to let if you wanted to let the property, however some will not agree to this if your ltv is above a certain level, so you would need to contact the lender.

I would get the mortgage put into your name, then approach them to get consent to let, asing for both together could spook them!

Thanks for the response Wh. I will speak with the original lender and go from there.

Norrislover

Simon_gloster wrote: »

Great name by the way.....is that your ex or newie!!!!

You wont be able to get a buy to let mortgage. You will, depending on the lender, get consent to let. Some do this up to 120%. If you are tied in they may allow this to continue, if you have no early repayment charges you will lose your existing rate and go onto consent rates.

If you look to take it on your own as a residence, the lender may insist on 10% equity at their valuation, as Wh said, you would be able to keep your existing rate.

Bringing the debt down is your highest proirity. If you cant get CTL or reduce the debt then its game over short term.

Hi Simon

Thanks for the helpful response. The name has been around for a long time!

I'm not too up-to-speed with most mortgage terminology so can I ask what you mean by getting a consent to let, up to 120%?

Cheers

Thrugelmir

Is it feasible for one of you to remain in the property and pay the mortgage until such time as the negative equity is cleared?

Will your ex agree to such an arrangement.

I assume that the mortgage is on a repayment not interest only basis.

Simon_gloster

Some lenders will be ok on 120% ie if you owe £120k and the property is worth £100k, then thats 120%.