Where to live: Renting or trying to buy after divorce?

[littleornoclue]

I am separated from my stbxh, getting a divorce. The children are living with me, but seeing their Dad regularly.

I should have some money after selling the house and splitting the proceeds, but not enough to buy a house outright.

We haven't worked out how to split things yet, and we don't know what the house will sell for, but I think I will be left with something around £60000 to £100000. This sounds like a lot of money, but the cheapest 2 bed homes within 30 mins of the kids' school are £130000, and that's 'in need of renovation'.

As we run a business together I'm also losing my job, and it looks like I will have to either take a minimum wage job or retrain.

Does anyone think it will be possible for me to buy a home, or will I just have to rent? I'm worried that if I rent I will gradually spend the money and will never be able to afford to buy a home again.

Has anyone been in a similar situation?

I am in the process of hopefully getting a smallish mortgage to take on the family home.
I am almost divorced and work part time earning approx £250 a month.
If at all possible, I would say get a part time job and update your application with the tax credits etc and go for it!
Some mortgage providers take into consideration the maintenance payments, if you get that.
Good luck! x

Thanks for replying!
Do you mind me asking how much they will lend you on your wage? (Sorry if that is cheeky!)
I'm looking for part-time work...

I needed £60,000 for our situation and they are happy (I hope) to lend me that. I have a mortgage offer in principle for the 60 and there is about £105,000 I have from the settlement.
I sound cautious because I am so relieved it is coming to an end and myself and the kids can move on and be ok again x

They may have lent me more - but I didn't need it. Hope you are ok.

Wow, I didn't think they could lend so much on a small wage. I know everyone's situation is different but based on your mortgage offer, sounds like if I'm lucky then it might be possible for me to buy. (Hopeful face)

Good luck with it all xxxx

Thanks - it's been a long nightmare - hopefully sorted out soon. x Take care x

tax credits/child benefit & maintenance are all taken into account although they may want to see 6 month worth of maintenance payments. I had 100,000 equity in my property & they were willing to lend me 45,000 5 years ago on a supply teachers sporadic wage & the tax credits. (didn't factor in maintenance cos it wasn't showing ion bank statements) Had no other debt.

You can try shared ownership - via a housing association. You part-buy (with your equity from the home you're selling, and possibly a small mortgage) and part-rent. Probably preferable to going back into rented - certainly more secure. They say you have to be a first time buyer, but in reality often allow cases such as yours.

If you apply to one of the government owned banks (RBS, LLoyds/Cheltenham and Gloucester/Northern Rock) then they take benefits and maintenence into account. I got approx £100000 from the sale of the FMH and got a mortage of £30,000 based on a salary of £3300 pa!! Seems unreal! I am a full time student at the moment so can't quite believe I got a mortgae but with that amount of deposit the RBS said it was no problem as all the risk was mine. Could you apply for a mortgage and get it in principle before you leave your job? Good luck - we moved 350 miles and had to live with my parents before I bought our wee house x

makemineapinot - thank you so much for this useful tip re gov owned mortage lenders.

thanks for the replies...
I have found a job to apply for and am feeling hopeful after reading your posts.

Divorcing is unbelievably awful... Mumsnet is keeping me going.

Does anyone mind me asking what proportion of assets you got in the settlement from the divorce? My solicitor thinks I should go for more than I want to go for, I'm not sure what to do. I want it to be fair to us both, and above all want to be able to provide for the children.

Definately ask for more than you want - your ex will. It's all about being seen to be amking compromises, and if you ask for more, you're likely to get closer to what you want. Trust your solicitor - they see itall the time. My split was around 90/10 (in English court) but I think I had a fab solicitor. Most of the other people I know who got divorced around the same time ended up aprox 80/20 ish in the main carer's favour - was the mother in all cases. Good luck x

Please before do anything else see a lawyer to find out where you stand and what options there are given your particular circumstances. Then you can negotiate from an informed position. Assets are shared according a checklist of factors and your lower mortgage raising capacity might justify a larger split in your favour. If the former matrimonial home isn't much bigger than required your husband staying on the mortgage until you are in a position to release him is another option.

When the value of the assets is low it's possible for them to be shared 100% in the parent with the majority of care's favour but these days splits of more than 60:40 - 70:40 aren't as common as they were a few years ago.