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Divorce/separation

Here you'll find divorce help and support from other Mners. For legal advice, you may find Advice Now guides useful.

Were you able to buy/get a mortgage after divorce?

7 replies

Nonagainst · 24/01/2023 10:42

I just want to hear about other peoples experiences.

My current situation is that I’ll get a minimum of maybe £20,000 from the sale of the house all the way up to £60,000. I live just outside of London and will obviously need to down size to a two bed flat. Basically everywhere is expensive here. Two bed flat in a somewhat okish area will be about £290,000. I can’t move any further out due to work and childcare (I only have one family member who can help me)

I have my child 24/7.

Ill be earning about £35,000 per year before tax. Has anyone in a similar situation bought a flat straight after the divorce or did you just rent? Could you maybe explain what you did. I feel like I’m walking into the unknown (which I’m sure we all are).

OP posts:
Hack221 · 24/01/2023 14:50

Hey, I’ve not been in your situation but I am a mortgage broker so may be able to help you understand whether buying another property is an option if you’d like a chat drop me a message 😊.

millymollymoomoo · 24/01/2023 15:57

On 35k per year with only 20k deposit ( worst case) I’m not sure you’ll get a mortgage to support purchasing a property

have you worked out cms payments and whether these will be considered?

have you looked at any benefits you may be entitled to in both renting and buying scenarios ?

1Wanda1 · 24/01/2023 16:03

I bought a £250k house with £100k deposit, an income of £2,000 a month net (all from court ordered maintenance) on 5% interest in 2006 when newly divorced. Once I'd retrained I had a job starting on £21k. It was hard to get that mortgage.

Fedupofdiets · 24/01/2023 16:05

Most mortgage lenders will only lend you 4.5 times your salary so you would be looking at around 155k max on mortgage. Have you had a look at online calculators? I am with YBS and they have one on there which will give you a rough idea of what you could borrow? Mine would only lend on maintenance payments of they were court ordered.

FrownedUpon · 24/01/2023 16:07

I don’t think you’d get a mortgage for the amount you need on that salary. Do you have any other savings to add to your deposit?

Freeflight · 25/01/2023 22:37

I think unfortunately it feels like swimming upstream on a mortgage front right now.
I live in the North West and have some equity in our house, but a lot of people aren't buying so that's not looking like a good option.
I earn an OK salary, but not much. I think I can only get a mortgage for around 70k and that's no where close to enough for a home.
Yet renting would cost even more and they will probably go up due to mortgage increases.
We are currently having to survive living together as best we can.

separationdivorceinfo · 30/01/2023 22:51

Not sure what point you are at in divorce / financial settlement.

Do make sure you have all assets "on the table" and you know what each is worth before making agreements about asset split and selling the former marital home - for example pensions (these can be worth a lot, and in some cases more than the property).

In case needed..info and questions to think about below. Sorry if not needed for you but other posters may find useful :)

Re – Divorce and Financial Settlement
To know what a fair split of assets is and to reach a financial settlement divorcing parties need to know what the assets of the marriage are, and what each asset is worth.

Has there been full and frank disclosure?
Look at a Form E. A long document in which each party sets out their assets, income, and financial needs. You can see in it the assets that are taken into consideration upon divorce and financial settlement, for example property (the former marital home), pensions, stocks and shares etc. It also lists the documents needed that show the value of assets for example CETVs (cash equivalent transfer values of pensions - which can be requested from pension providers).

Do you know what all the assets are worth and valuations for them?
To find out what some assets are worth an independent expert can be used. Property can be valued by an expert - estate agents, pensions by CETV and / or a pension on divorce expert (PODE) report and so on. It is important to decide what needs a valuation by an independent expert and factor in the costs of these. Pensions can be very valuable – equivalent or more than the value of the former martial home in some cases. Divorcing parties might hold different types of pensions (not like-for-like, so difficult to compare without an expert). Circumstances might be complex for example an age difference or pensions in payment. One party may have stayed at home to look after children.

Full and frank financial disclosure is required and usually provided when Form E is exchanged. If after Form E there is missing information / evidence Questionnaires may be exchanged to retrieve it and if still missing after that Deficiencies are exchanged.
A solicitor’s letter can be sent to retrieve financial information evidence.
A Court Order can also be applied for to gain financial information / evidence / valuations that is missing / essential.

Section 25 Factors
When deciding how to distribute a couple’s assets and income the court has to apply a checklist of factors set by statute. The relevant statute is section 25 of the Matrimonial Causes Act 1973. These factors will need to be applied in every case, regardless of whether you are engaged in court proceedings or negotiating your own settlement. These are often called the Section 25 factors, which the court will take into account when deciding how to distribute assets upon divorce or dissolution.

Courts put the needs of children first.

The income, earning capacity, property, and other financial resource which each of the parties to the marriage has or is likely to have in the foreseeable future is taken into account. As I understand it, first consideration is given to the welfare (while a minor) of any child of the family who has not yet attained the age of eighteen.

The needs of each divorcing party are taken into account and as I understand it 50 / 50 is the starting point – so unequal shares based on circumstances and needs is possible, for example 60 / 40.

Where to get info & advice
These offer a free advice session about pensions on divorce and separation www.moneyhelper.org.uk/en/family-and-care/divorce-and-separation/divorce-or-dissolution-how-we-can-help-with-your-pension
Free advice line (busy so keep trying) rightsofwomen.org.uk
Guides on divorce and financial settlement
www.advicenow.org.uk/guides/how-apply-financial-order-without-help-lawyer

Pensions on divorce
www.sharingpensions.co.uk/penaudit3.htm
www.mediateuk.co.uk/the-ultimate-guide-to-pensions-on-divorce/
www.nuffieldfoundation.org/news/new-good-practice-guide-addresses-shortfall-in-understanding-of-how-to-treat-pensions-on-divorce
Valuation of pensions – pensions on divorce expert report
www.collinspensionactuaries.co.uk no relation – useful website
www.collinspensionactuaries.co.uk/pension-data-collection/ templates for information required

Legal advice
This link gives you an indication of hourly rate for solicitors
www.gov.uk/guidance/solicitors-guideline-hourly-rates
Some organisations offer free advice from solicitors and barristers rightsofwomen.org.uk/get-advice/ On their FAQs page…”Our Legal Officers and Volunteer legal advisors are all solicitors and barristers”.
Some family solicitors offer an in initial free consultation and some a fixed fee rather than hourly.
Some barristers can be directly instructed e.g., via Clerksroom Direct
Mumsnet suggest www.advicenow.org.uk/tags/separation-divorce-and-dissolution-civil-partnerships
Family mediation is a process in which an independent, professionally trained mediator helps you work out arrangements for children and finances following separation.

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