Any mortgage savvy people able to give advice please ...

[PANTSforsure]

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...?

Mortgage lending is all about affordability so unfortunately with 3 dependants and no income, you have no chance of getting a mortgage on your own, whatever size your deposit (even before the poor credit rating).

Have you looked at keeping the house until you've completed your training and / or the children are no longer classed as dependants?

You're unlikely to get an individual mortgage if you have poor credit and low income. There are a few choices how to proceed but it depends a lot on affordability. You could sell up, split the proceeds and use the share of the equity to rent somewhere new rather than buy. You could possibly find someone to act as guarantor on a mortgage and either buy out your ex or buy somewhere new. If your ex can afford it, he might agree to keep paying the mortgage on the current property and defer the sale in lieu of maintenance payments.

Have you had legal advice yet?

Sadly, you are unlikely to get a favourable mortgage because of your dependants, lack of income and poor rating. Your deposit under these circumstances will count for little under new MMR rules.

Sorry to hear about your separation

One of the unfortunate consequences of an amicable split is that if you start to receive maintenance that has not been court-ordered is that the mortgage lenders most likely will not count it as income as it could stop. Sorry

Thank you for the honest replies everyone. 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 sure if this is 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.

Bear in mind that if you sold the houss and you got a lump sum of equity and then rented you may be unlikely to get help from housing benefit as your equity will put you over the threshold . You would be better off trying to stay in the house ntil your yongest child turns 18 and try to carry on paying the mortage with the maintainence payments and tax credits

I wouldn't bother with speaking to mortgage lenders OP, honestly, if your income is zero, as you've said, there's absolutely no point (unless you have a guarantor)

If you don't believe me, try putting your details into an online mortgage calculator - 3 dependants and no salary equals no further lending.

As others have said, speak to a solicitor to see what your options are.

It may well be better for you to continue to pay the mortgage on your current home if at all possible as you'll erode away the equity in it by selling and renting.