Mortgage advice/Going through a divorce

[GullTQY]

Hello everyone

Just wanted to reach out and see if anyone's been in the same boat as me.

I'm currently going through a divorce, early stages. I own my house with my ex husband. I live in the house with my 2 children 8 and 13 yes. I work part time and earn very little (11000 a year). My ex works full time and earns alot more in comparison to me, probably more than double. We have a mortgage but it is interest only (all done by him as I was young and naive at the time and was not allowed to have a say on anything l, so no judgement please) So we have paid nothing off the mortgage. He's happy to keep help pay for the mortgage until the kids are 16-18. By then, the mortgage will have run out and we'll need to sell or pay it off. I have no way of paying it off, and as far as I know, neither does he, and has told me we will have to sell. Im quite sentimental and it's where I've brought the kids up for the last 6 years on my own. I've tried searching on the net but it's like a minefield of information.

Has anyone been through similar? Have you managed to keep the house whether a mortgage provider has said yes you can stay even though you're a single mum on part time wages (hopefully by the time my kids are 16 I will have.a full time job) or whether somehow you've managed to pay a lump of it off?

I feel at a loss of which avenue to go down. What will the divorce courts say, if anything, about the mortgage?

Just looking for other people's experiences or guidance please.

Please be kind 🙏

What other assets are there from the marriage?

I would make an appointment to see a mortgage advisor. The independent ones might not be too keen to spend their time with someone who is not going to take the mortgage with them (personal experience). However the mortgage advisor from your own bank might be more patient. Alternatively, you still have a few years to try and retrain and get a better job. Alternatively, if your child goes into work right after school instead of college/uni, you can take joint mortgage with your child i believe

If he's willing to keep paying you just need to go back full time so you can buy him out and remortgage, at least try to. If your youngest is 8 your child care won't be high

I suggest you get this thread moved to Property/DIY.

Your situation isn't that uncommon OP, it depends very much what your income will be after the divorce and what your mortgage balance actually is, and in relation to the property value.
Contact a local mortgage adviser, they can talk you through this.

Before you go to the mortgage provider, you could ask a real estate person or 2 to value your property, saying that you may need to sell (which is true). Of course their view isn't a guarantee, but you might be better off than you think if for example your mortgage is for £200k and the property is now worth £280k, then you and your ex could sell and have at least £40k to put towards savings or buying.

Realistically, £11k a year - even supplemented with benefits - is unlikely to be enough to secure a mortgage on anything suitable for you and 2 kids almost anywhere in the UK. With the age of your kids, can you increase your hours, or look for an alternative job?

You say he'll help with the mortgage until kids are 16-18, but that's not a guarantee. So many chances for this to change - if he loses his job, if the mortgage renewal comes in massively more expensive, if he meets someone new and wants his own place, but can't because his name is already on your mortgage. There's a reason that most divorces these days are 'clean breaks', it otherwise gets really messy.

Do you live in an area with a reasonable waiting list for council flats? If so, that could be an option that would give you some stability Vs relying on a mortgage with an ex or expensive private rental.

A few things to consider -
Is the divorce fairly amicable? Are you both planning to come to a financial arrangement between you to present to the court for approval? Is the mortgage in joint names?

If yes to all, in your position I would do the following (please do your own research into these suggestions as I am not a legal expert):

Ask your ex for a financial disclosure of all income, savings, investments and pensions. This is standard protocol as part of the settlement.

Pay for an individual consultation with a solicitor to determine
-what the best possible financial outcome in your favour, and
-what is the most likely outcome in the split of assets, (including pensions) given your ex's financial position should it go to court.
Make detailed notes and ask about everything. Keep this private - this is your negotiating hand.

Use this information to negotiate the financial split with your ex, coming to a joint agreement between you if possible - this will keep costs down. The agreement should sit somewhere between: 'the best possible in your favour' and 'the most likely' outcome if it went to court.
Some law firms will progress to court approval as a joint agreement at a much cheaper cost, (as there is only one set of solicitors).

In addition to the usual child maintenance, split of assets, pensions and savings, try to reach an agreement for him to pay a large percentage of the mortgage (if not all of it). You're unlikely to be able to afford a mortgage in your sole name at present. Compare your share of mortgage payment to likely rental payments in your area - you might be entitled to housing benefit and decide this is a more secure option. Also try to include a commitment he will continue to pay until the youngest child is 18, and will pay a similar percentage for repairs and maintenance of the property. Specify the percentage split of equity in the house when it is eventually divided - it does not have to be 50/50 as he has higher earning capacity whilst you are the primary carer. If this is all detailed as part of the financial settlement, it will be legally binding on him.

This will give you 10 years for the equity in the property to grow; to give you time to build your earning potential; and to pile as much as possible into your own savings and investments for a deposit.

In 10 years time you will be in a very different situation. You might well need to sell at that point, but will be doing so from a position of a sound financial foundation. You might also find you have built up sufficient income and deposit to buy out your ex with your own mortgage, or you might decide the house no longer meets your needs.
Good luck - I hope things work out well for you.