Trying to get a Mortgage when you are looking at divorcing can be quite complicated and stressful. Trying to move home or get a new mortgage can be complex.
Mortgage lenders typically consider your situation as it stands at the time of application and not necessarily how it will be once the divorce is finalised which can be quite frustrating as that could mean they are not taking in to account future income sources such as an increase in hours, benefits and tax credits you may be eligible for or maintenance you will be in receipt of.
How can Mortgage Success help?
Prior to the Divorce – Occasionally we are asked for a Mortgage Capacity report letter. This is to confirm how much you are able to obtain for a Mortgage and may be used during the divorce proceedings when determining who should get what. All of our letters are written from scratch specifically for you.
During the Divorce – As we have access to over 70 or 80 Mortgage lenders at the last count, we have plenty of lenders where we can discuss your circumstances (and more importantly, future circumstances) in order to try and obtain the best mortgage for you. It could be that you work part time currently as you look after the children but going forward you will be increasing your hours and also in receipt of maintenance for example. We have access to lenders who will look at these future changes when determining how much you will be eligible for with this. This can be the difference of not being able to obtain a Mortgage, to getting enough to buy somewhere to start the next chapter.
This is something most high street lenders will not consider. Their processes are generally geared up towards the mass market, which unfortunately does not usually include people going through divorce and a change in circumstances.
It can mean a premium on the interest rate, it is hard to estimate how much higher the rate will be as it will come down to your circumstances, but if you maybe assume 0.5% higher, it should hopefully not be too far out.
After the divorce – At this point, we would expect to start seeing more evidence of what will be happening going forward and this is where it starts to get easier obtaining a mortgage and hopefully price wise more in line with a “normal” mortgage. You may already be in receipt of maintenance or benefits/tax credits at this stage so rather than trying to obtain evidence for what will happen in the future, we will be able to obtain proof that you are in receipt of these things.
You may also find that if it is has been a messy divorce and bad credit has been picked up, we are at a stage where the negative markers are maybe 6-12 months old and so there is clear evidence that prior to the divorce everything was fine and following it, things have been clear also.
Mortgages & Divorce overview
We can sit down with you from day one and help give some guidance and direction with what size mortgage should be achievable at different stages of the Divorce process. We can also help with approximate rates/fees. Realistically, the earlier in the process you are, the less options there will be and it will likely cost a premium, but not necessarily, it all depends on your circumstances.
To find out how we can help you to get a Mortgage during the divorce process or if you would just like some guidance, please do get in touch where we will be happy to sit down and have a chat about where you are up to and what is feasible.