It can be unfortunate if you decide to separate from your partner and go through the divorce or separation process. It can also be a stressful time and something that couples never foresee. If you have a joint mortgage and other finances, this can make the situation even worse.

Below, we have compiled just a few of the most common questions we are asked when we deal with customers in this situation who need to rearrange their mortgage commitments.

Do I need to keep paying my half of the mortgage? 

No matter what situation you are going through right now, you still must keep paying your mortgage. This is still the case, even if you live elsewhere.

You still have an agreement with your now ex-partner to take equal responsibility for your joint mortgage. Because of this, you are equally liable for any debts until the mortgage is paid off, regardless of your situation and whether you live there.

If you do not pay your mortgage on time, you can be at risk of causing a lot of harm to both you and your ex-partner’s credit history. This applies equally if your ex-personal partner does not pay on time, you will be affected. This will result in the risk of your home being repossessed if you do not meet your monthly repayment date or other debts you have secured.

When should I inform my lender?

Once your separation is for definite, you should contact your lender as soon as possible to inform them. If you have trouble paying your monthly mortgage, this is even more important to notify your lender.

What are your options?

1. Sell The Property 

In this situation where you have both decided to move out of the property, sell and repay your remaining mortgage balance. The remaining equity will be split between you both. It is something to discuss between you and your ex-partner about who gets what from this remaining equity.

Here at Newcastlemoneyman, we have a team of specialist mortgage advisors in Newcastle. We worked around the clock to see if we can find you a suitable option to buy a new home under a single name.

Your dedicated mortgage advisor in Newcastle will work hard to find you the most appropriate mortgage deal for your situation. We will also provide you with appropriate and expert mortgage advice in Newcastle.

2. Continue to Make Those Payments

In the case where a homeowner has separated from their ex-partner but is on better terms with them. Sometimes one chooses to stay in the property and continue to pay the remaining mortgage amount.

This can be a convenient route, especially for those with fixed rate mortgage terms, if it works with your personal situation.

3. Stay in The Property  

Taking a remortgage in Newcastle out in either your own name or your ex-partners can be helpful if you or your partner decides to remain to live in the property.

Being the sole owner of the property means you will need to take out a Remortgage if there is an outstanding mortgage to pay off in both you and your ex-partners’ names. This will work with the new mortgage in your sole name and involve the lender making another assessment of your affordability.

Can I get a second mortgage? 

It may be possible for someone to have more than one mortgage; You can find that credit scoring systems can majorly vary from lender to lender. Applying for a second mortgage would mean you will be analysed on several factors.

Looking at your current financial commitments is one of the main factors they will consider. That is why you need to be sure you can afford a second mortgage with your financial commitments. You need to be sure that you can afford a second mortgage because being rejected for this could have a negative impact on your credit file.

Here at Newcastlemoneyman, we do have an expert team of mortgage advisors in Newcastle who can help you out with credit searches that will have less of an effect on your credit file. Once our team has collected the necessary information, you can get an idea of the maximum amount of mortgage you could borrow.

This allows you to learn more about your budget and estimate the amount your monthly mortgage payments will be with your current financial commitments.

Getting away from your current financial commitments can be a tough process which is why having a trusted mortgage advisor in Newcastle by your side is beneficial as they will be able to provide a helping hand throughout the process.

If you are moving home in Newcastle, you may find the experience stressful, especially those going through a divorce or separation. Contact a mortgage advisor in Newcastle today, and our team will be happy to see how they can help.

What if I am in negative equity?  

If you divorce in the house that both jointly own in negative equity, it can be difficult to sell the house and pay off the remaining mortgage balance. In terms of the remaining debt, you may need to divide this between the two of you or come to an agreement with your current mortgage provider. 

Date Last Edited: April 5, 2023