Sometimes life doesn’t work the way you hoped it would and your relationship or marriage can come to an end. Things become especially difficult when you factor in things like joint financial commitments, as these can be hard to sort out.
When speaking to customers about this topic in Birmingham, we often encounter the same 3 questions in some form or another:
The planning process for buying a home together, doesn’t often come with discussions of the relationship dissolving down the line – That’s never an intention. Even still it can be quite difficult to work around, though not impossible. Eventually one of you has to move out.
Usually if there are kids involved, it is the mum who stays in the house with the young ones, though there will come a point where whoever is “in situ” wants to take the mortgage into their own name, something that requires a lot more work than you may have expected.
Though you may be able to show that you have been solely keeping up payments without your ex providing support, it will not change the fact that it is a joint application. What this means is that no matter who has been paying it and how long you have been separated, both parties are liable if the lender decides to chase a payment.
Before you remove your ex from a mortgage, the lender needs to be certain that the sole applicant will be able to afford payments by themselves. This unfortunately means you are back to square one, being subject to a full assessment of your income before you can continue.
If you pass, you can carry on paying off the mortgage as normal. If you don’t pass and have nobody else to assist, they won’t allow you to remove anyone. Luckily for some, they have a family member, friend or even a new partner to jump on the mortgage with them, decreasing risk to the lender.
If you are interested in how the mortgage process works, check out our article on ‘how to buy a property with a partner or friend’ which can provide more insight on this.
There lots of lenders out there though, with all kinds of assessment methods. If one says no, try speaking with a Mortgage Broker in Birmingham and we will try and match you up with another lender based on your personal circumstances.
If you happen to leave your partner, you must fully understand that you are still liable for the mortgage payments, whether you end up moving home in Birmingham or not. You took out a financial commitment together and signed a contract, it is unfortunate, but a reality. As stated, you can remove a name from a mortgage, but it is not easy.
When applying for a new mortgage, the lender will take your old payment into account if you are still attached to it. This will drastically limit the amount you can borrow for any future property you are looking to buy.
With these instances in mind, it is imperative that you speak to a mortgage broker in Birmingham and listen to the advice given, prior to making an offer on a property.
At times lenders may be more generous in regard to lending amounts, something our experienced mortgage advisors will take into account when recommending the most suitable lender to undertake a mortgage agreement in principle with.
A commonly asked question even outside of the context we’ve spoken about, the answer is yes you can get two mortgages. Though it depends on lending criteria and credit scoring, it’s entirely possible to take this route if necessary.
Lenders check for a variety of factors for circumstances like these, with financial commitments being just one. You will need to make them aware of the current mortgage with your ex, as well as any other commitments you have.
Once this has all been keyed in, we will be able to confirm the maximum amount you are able to borrow. This will help provide an outline of your budget, so you are aware of the minimum deposit you will need.
Moving on from previous financial commitments can be challenging, we get that. Just remember that the most important thing to lenders is risk, as they want to avoid repossession no matter what.
To learn more or enquire about removing someone from a mortgage/getting a second mortgage, get in touch and we’ll book you in with a mortgage advisor in Birmingham.