Advice requested - separating amicably but need deposit to buy new home

Hi,

My wife and I are looking to separate. We are working through our options, and I was hoping to seek your advice.

We have a joint mortgage on the family home, that only has 5 years of the mortgage to run. There is fortunately significant equity in the home (mortgage remaining £60k, house value £500k). We have two school age children.

I am the sole wage earner with my wife undertaking the child care responsibilities (youngest in 5 years old). I have no wish for my wife and the children to have to leave the family home, and happy to support the mortgage and home running costs until the children are older, when we can then sell the house and share the equity.

We have savings, but not sufficient to cover a 20% (or similar) mortgage deposit to allow me to buy another home. With cutting back on both our behalves I hope I could support the purchase of a smaller home for myself and the current mortgage obligations / running costs of the family home.

So, the advice I would really appreciate relates to my options raising the deposit to allow me to buy another home. Can I release some of the equity in our joint home or similar? Our situation is OK at present, but we both have agreed we now need to move forward.

Thank-you in advance for your help.

Comments

  • BAFE
    BAFE Posts: 267
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    Forumite
    Can you approach the bank for a buy to let mortgage and then move into the property yourself
  • System
    System Posts: 178,073
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    Community Admin
    BAFE wrote: »
    Can you approach the bank for a buy to let mortgage and then move into the property yourself


    These are more expensive and typically need more of a deposit.



    OP - it's your mortgage so you can do with it what you like. If you re-mortgage and take out a little more money, you'll have enough for a deposit. You have a lot of equity so you're in a good position.
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