Separation/Divorce - Moving out, possible to obtain another mortgage.

jetstream25

Hi,
Bit of a morbid post, but it is what it is.
My wife and I have decided to split after 16 years in a relationship, the last few haven't been very enjoyable at all, now it's not fair on the kids (9 and 13). Not ending nastily, we both knew it was coming, but now what to do with money/house/mortgage.

I'm - wanting to - moving out. Currently have £200k outstanding on a mortgage over 20 years (we rented for a long time initially). I earn most of the money (£80k v £20k) and wondering how best to deal with this. 

Do I stay on the current mortgage? Can I get a mortgage on a second property? I read somewhere that it would be 25% deposit required, but got confused if that was for a buy to let property?

Have £15k of savings and could obtain a 1-2 bed flat for £130k-£200k (in the South).

Any initial thoughts appreciated. I appreciate there would no doubt be a lot more information required, but the basics are as above.

Thanks,
Greg

kingstreet

jetstream25 said:

Do I stay on the current mortgage? Can I get a mortgage on a second property? I read somewhere that it would be 25% deposit required, but got confused if that was for a buy to let property?

Yes. Yes. Not true.

90%-95% is possible with a handful of lenders but the existing mortgage will be treated like a credit commitment and the monthly cost used to tax your affordability. Get broker help to avoid the kind of misinformation you seem to be hearing.

jetstream25

kingstreet said:

jetstream25 said:

Do I stay on the current mortgage? Can I get a mortgage on a second property? I read somewhere that it would be 25% deposit required, but got confused if that was for a buy to let property?

Yes. Yes. Not true.

90%-95% is possible with a handful of lenders but the existing mortgage will be treated like a credit commitment and the monthly cost used to tax your affordability. Get broker help to avoid the kind of misinformation you seem to be hearing.

Thank you, @k@kingstreet Good to know. I will do soon.

DullGreyGuy

jetstream25 said:

Bit of a morbid post, but it is what it is.
My wife and I have decided to split after 16 years in a relationship, the last few haven't been very enjoyable at all, now it's not fair on the kids (9 and 13). Not ending nastily, we both knew it was coming, but now what to do with money/house/mortgage.

I'm - wanting to - moving out. Currently have £200k outstanding on a mortgage over 20 years (we rented for a long time initially). I earn most of the money (£80k v £20k) and wondering how best to deal with this. 

Do I stay on the current mortgage? Can I get a mortgage on a second property? I read somewhere that it would be 25% deposit required, but got confused if that was for a buy to let property?

Have £15k of savings and could obtain a 1-2 bed flat for £130k-£200k (in the South).

Any initial thoughts appreciated. I appreciate there would no doubt be a lot more information required, but the basics are as above.

Just separating for now or divorcing?

You'll have to stay on the current mortgage unless you can find someone who's willing to give your wife a mortgage in her own name alone and based on salary that doesnt seem likely. 

You can have multiple mortgages at the same time, the lender will consider the affordability of being able to pay both just as it would any other debts you are servicing 

DE_612183

don't forget even if you do buy in your name, when it comes to a divorce - all assets ( property, pensions, savings ) will be treated as joint - maybe better to get divorced now - split everything and then you can move forward...

Brie

DE_612183 said:

don't forget even if you do buy in your name, when it comes to a divorce - all assets ( property, pensions, savings ) will be treated as joint - maybe better to get divorced now - split everything and then you can move forward...

Not easy if it means everyone moving and all that upheaval.  Also if the OH and kids stay put and the OP is still on the mortgage - how does that work for splitting the value of the property at some point?  Frankly I think some proper advice from a divorce lawyer is required.  

RAS

Agreed, better to sort out the divorce and financial settlement sooner rather than later. 

Assets of the marriage include all properties, all pensions, and savings less debts. With a higher income and a wish to acquire your own property, leaving this until your pension increases and your own a second property is unwise.

That may mean delaying your new purchase a year or two and offering additional provision until the youngest is in secondary school, so your wife can start to rebuild her career. And also looking at your commitments so you can have the kids overnight and enable her working longer days regularly.

Hoenir

Seek advice from a Family solicitor. You need to gain an understanding of the full picture. Your wife will undoubtably do the same. Family Law normally guides people through the mediation route. As paying solicitor's to write letters to each other is extremely expensive and best avoided. 

ian1246

How much equity in the house? Sell and give the wife the lions share of the equity so she can buy a shared ownership (the "rent" element counts as housing costs for Universal Credit purposes).

Also worth noting your pensions will need splitting and with the difference between your incomes, you'll likely be required to pay spousal maintainance for a interim period of adjustment (i was told i was "right on the edge of spousal maintainance" by my solicitor with a £46,000 income vs. Ex-wifes £15,000 - so i would imagine you'll likely be with that income difference).

You would perhaps have the option to offset spousal maintainance / loosing part of your pension by providing a larger share of the houses capital.