Mortgage from Divorce settlement query

geoffandmich

Hi All,

Just joined the site, and am wondering if someone can help/throw a bit of advice my way. My partner is currently going through a divorce and its looking possible she will receive around 160k equity of the former matrimonial home. This is nowhere near enough to be able to purchase a house for her and her daughter. The problem is she works Part time, and im in an IVA from my previous marriage, so im not very useful to her!

My question is IF she was to approach a broker/fin advisor with 150/150k deposit do you think she would stand a good chance of getting a mortgage? Shes 47, 1 child, works part time salary 6k a year.no debt at all. houses she is looking at would be around 210k so would need a mortgage of 50k...i was thinking if this was possible she could request it at 'interest only' so to keep short term costs low until my IVA ends and i can really support her fully...

Appreciate your time and any thoughts

Regards

Geoff

kingstreet

No. Sorry. Not on that income.

If she has maintenance and child/working tax credits these are accepted by some lenders and will increase what she can borrow.

However, the days of non-status and self-certification mortgages are over.

geoffandmich

Hi,

Thanks King, but the fact she will have a 160k deposit doesnt matter then? I thought the greater the deposit the more her chances were?

Also would they not factor my income into the equation despite me being in an IVA?

kingstreet

geoffandmich wrote: »

the fact she will have a 160k deposit doesnt matter then?

The deposit will more or less guarantee her a mortgage. Only her income will determine how much she can borrow.

Also would they not factor my income into the equation despite me being in an IVA?

No. You're party to the purchase and mortgage and try to pass the credit score (very unlikely) to have your income included, or you are totally excluded regardless of any physical contribution you might make to the household.

geoffandmich

Right. im confused now. Sorry...

The deposit she will have of around 150 to 160k WILL guarantee her a mortgage BUT because her income is so low she wouldnt get as much as ive mentioned (Around 50k)?

She does receive CSA rate maintenance too,alongside working tax credits/Child tax credits.

Guess she really needs to speak with a financial advisor right?

Thankyou again for your time. Its extremely stressful at the moment and having been through a divorce myself i know how badly people can come off

Kind Regards

Geoff

meer53

Why is 160k not enough to buy a house ? She only has one child and if she's 47, probably not looking to have any more ?

geoffandmich

Hi,

Well i guess its location. We live in Hove, and the prices are much higher here. 160k may just about buy you a tiny flat...

This is a divorce settlement and theres alot to still agree right now but i was just asking the question of if its feasible for her.

Geoff

kingstreet

geoffandmich wrote: »

Right. im confused now. Sorry...

The deposit she will have of around 150 to 160k WILL guarantee her a mortgage BUT because her income is so low she wouldnt get as much as ive mentioned (Around 50k)?

Yes. In my first post I was saying no, sorry, to your request for a £50k mortgage. She should be able to borrow around 4x her gross annual salary and can have the tax credits and maintenance taken into account to increase her borrowing power as I said. She may get £50k, but not based simply on the income you disclosed in your opening post.

She does receive CSA rate maintenance too,alongside working tax credits/Child tax credits.

Guess she really needs to speak with a financial advisor right?

I would say that is a very good idea. Find a good independent or whole market broker from recommendations from friends and family and take along payslips, evidence of the tax credits, child benefit and maintenance.

It might also be worth her getting a copy of her credit file upfront so she knows there's nothing to worry about there.

Thrugelmir

geoffandmich wrote: »

We live in Hove, and the prices are much higher here.

That's personal choice. Not the practicality of the situation. When separating, difficult life changing decisions often have to be made.

From your side of the fence. The view should be that £160k is sufficient for your ex to buy a suitable home for her and your daughter.

dimbo61

Some lenders do take into account CSA/court awarded maintenance payments+ tax credits and income but a broker may well be able to help her