Often, when a couple are going through a divorce and they share a mortgage, they agree that the best thing to do is sell the house, pay off the mortgage and go their separate ways. Any equity that is left over once the mortgage has been paid off is then treated as a marital asset and split accordingly. This is the simplest route to take when divorcing and if it’s an amicable separation, it usually has few complications.
However, in the event that one person wants to stay in the marital home, things get a little more complicated.
This scenario is usually when there are children involved and the parents do not want to uproot them from the family home.
In this case, the person that wishes to stay in the house would buy out the other person; remortgaging the house in their name only, to provide the money needed for the buy out. You may need to get the value of the property assessed to get an up to date figure, and to determine the level of equity in the property.
Remortgaging allows ownership to be transferred to the occupier with only their name on the mortgage.
To be able to successfully remortgage the person occupying the house must prove to the lender that they can afford the mortgage by themselves. It’s worth noting that the lender is under no obligation to transfer the mortgage into one name – however if you can satisfy their concerns about having a sole mortgage holder, they’ll likely comply.
Divorce can be a financial strain for one or both parties; living off one income rather than two can be a challenge. But by remortgaging, you can free up equity that will help you live on just one income.
Another issue that often comes with divorce is marital settlements.
How we can help
If you’re going through a divorce and need to raise funds for a marital settlement, often the best way to do that is to remortgage your home. This allows you to free up some extra cash that otherwise wouldn’t be available to you. And it means you don’t have to take out any extra loans or credit cards to pay your settlement.
Divorce is a difficult time for everyone involved but here at TaylorMade, we aim to make the whole process of remortgaging as simple and as stress-free as possible. We can guide you through the entire process either individually or as a couple to ensure everyone’s best interests are taken care of.
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TaylorMade Finance Ltd is authorised and regulated by the Financial Conduct Authority (FCA Registration Number 669968). Company Registration Number 06742859
Complaints:
In the event that you wish to complain, you can contact us by email, telephone or letter.
Our address for this is:
Complaints Officer, TaylorMade Finance Ltd, 4 Church Road, Urmston, Manchester, M41 9BU. Our email address is info@taylormade-finance.co.uk and our telephone number is 0161 776 1089. We will then investigate the issues raised and inform you of our findings. Should you be unhappy with the resolution to your complaint you may contact the Financial Ombudsman Service, who can be contacted at the following address: Financial Ombudsman Service, Exchange Tower, London, E14 9SR.
Email: complaint.info@financial-ombudsman.org.uk
Phone: 0800 0234 567
https://www.financial-ombudsman.org.uk/
Your mortgage will be secured against your property.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Our fee for this service is 1.95% of the mortgage balance (minimum £1,295 to a maximum of £2,995 although reduced to maximum £1,995 without debt consolidation). Typically this will be £1,995.