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Any mortgage savvy people...advice needed re mortgage/splitting money after speration please...

(4 Posts)
PANTSforsure Fri 13-Feb-15 22:53:52

I have been married for 18 years and have three children still at home. My husband and I have decided to seperate with a view to divorce at some point. The children will stay with me. It is a mutual decision although instigated by myself. My husband is self employed and earnings are very low. I am in the process of retraining for a new career and so don't earn anything. We have about 150k equity in the house. I have a bad credit rating. If we sell the house and split the money 50/50 (both sort of decided this during our first conversation about it but not set in stone) is it likely I and he would get a mortgage each based on his low income and my bad credit rating despite having 75k equity each to put down. Other alternative is to rent the house out for approx 1000 per month and split money. Any thoughts from anyone...?

STIDW Fri 13-Feb-15 23:49:58

There is no substitute for independent legal advice but a good starting point is to research local property prices including renting and state benefits you may be entitled to. Renting may cost more than your mortgage payments. IF neither of you have any mortgage raising capacity and you can afford mortgage payments one option may be to defer selling the property until your youngest child reaches maturity or you remarry or die, with your husband retaining an interest in the property in the form of a charge back.

holdmybeer Sat 14-Feb-15 07:30:16

I seperated from my ex last year. Found a small house for myself and dc repayments £150pm cheaper than renting in the same area. First mortgage application was declined on grounds of affordability. They would not accept benefits or maintenance as a form of income as they're not guaranteed. I have a good
credit rating and an earned income. My experience would suggest you would both struggle to find mortgages independently.

If possible I would advise against selling the marital home until divorce is finalised and financial settlement agreed. Ex and I agreed finances on separation but as soon as the marital home was sold he changed our agreement. All my bargaining had gone and I now recieve minimum child maintenance and nothing much I can do about it until we actually divorce.

PANTSforsure Sat 14-Feb-15 11:06:07

Thank you for the honest replies. I think the first step is to receive proper legal advice but also talk to a few mortgage lenders. Tax credit would bulk up some money but not if this is not counted as income. Would love to keep training as means a secure income later on hopefully. It's all the unknown at the moment. Unfortunately husband is unable to keep the mortgage and bills payment as would need his own property. He would if he could but is on such a low income plus he has MS and his future with work is insecure because of this. All very sad and hard.

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