Divorce is a challenging time for anyone going through it – emotionally, legally, and financially. We can help answer the common question – what are my mortgage options if I get divorced?
If you’re separating from your partner and own a property together, your mortgage may be one of the biggest things to sort out. At HFA Mortgage & Protection, we’ve helped many clients navigate this exact situation. Let’s explore your mortgage options after a divorce or separation, and how to protect your financial future.
Option 1: Selling the Property
The most straightforward solution is selling the home and splitting the proceeds. This clears the mortgage and allows both parties to start fresh. However, this isn’t always practical, especially if children are involved or one person wants to remain in the property.
Option 2: One Party Buys the Other Out
If one of you wants to stay in the home, you may be able to buy your ex-partner out. This means refinancing the mortgage into one name and possibly borrowing more to cover the equity payout.
Lenders will assess whether you can afford the mortgage solo. You’ll need:
• Sufficient income to cover the new payments
• A good credit history
• A legal agreement outlining the financial settlement
Option 3: Transfer of Equity
A transfer of equity removes one person from the mortgage and title deeds. This requires lender approval and may be combined with a remortgage if funds are being transferred.
Option 4: Continue Jointly (Short-Term)
Sometimes, ex-partners continue to co-own the home while sorting finances. This isn’t ideal long-term, but it can buy you time. Just remember, both parties remain liable for the mortgage until it’s changed legally.
Things to Consider
• Your credit score may be impacted if your ex misses payments
• Maintenance payments can count toward affordability
• Legal advice is crucial alongside mortgage advice
• Speak to a broker early to understand your financial position
Real-Life Case: Mark & Ellie
Mark came to us during his divorce from Ellie. He wanted to remain in the family home for the children’s stability. We helped him remortgage into his sole name, using a mix of salary and maintenance income to meet affordability. The process took 8 weeks, and he kept the home in Ormskirk going forward, giving the kids continuity during a difficult time.
We’re Here to Support You
Divorce can feel daunting, but you don’t have to face it alone. At HFA Mortgage & Protection, we’ll help you understand your rights, explore your options, and create a plan that works for your future.
Let’s Explore Your Options
Going through a separation? Let us help guide you through your mortgage options with care and clarity.
Start the conversation today — and take back control of your future.
Important Notice:
There may be a fee for mortgage advice. The precise amount of the fee will depend upon your circumstances but will range from £195 to £1500.
Your home may be repossessed if you do not keep up repayments on your mortgage.
