"Excellent, helpful service throughout."
Miss P., Skellingthorpe, Lincolnshire
It's no secret that marital breakdowns and divorce can be extremely stressful and traumatic for all involved, on both an emotional level and financially too, especially when it comes to your mortgage.
In 'Divorce and Mortgages' we explore and clarify some of the many popular misconceptions and questions that arise when it comes to divorce and mortgages. We'll also take a look at how Shire Direct may be in a position to help if you are facing divorce and have a mortgage.
Table of Contents:
Marriage breakdowns, or indeed any partnership rift, can create tremendous stress and upset. Probably the last thing either partner will be interested in at such a traumatic time will be the mortgage commitment. However, it is an aspect that must be confronted in order to protect the interests of both parties.
Our experience has shown us that there are some misconceptions that often arise regarding mortgages and divorce, and it may be worth examining and clarifying some of these misunderstandings. So, let's take a look at some of them.
No! It's bad advice!
Your mortgage contract or deed will undoubtedly contain a positive covenant (or promise) that you will maintain your contractual mortgage, and that failure to do this will put you at risk of having your property repossessed.
Yes, it certainly can!
Despite the fact you may be having personal problems, any missed payments on mortgage or other financial transactions will usually go against you when you come to making a fresh start and buying another home.
All lenders will undertake a credit search through one of the major credit referencing agencies such as Experian or Equifax, and if your credit record contains adverse credit information such as missed payments, arrears, or County Court Judgements (CCJ's), then the options available to you will inevitably be reduced, or become unavailable altogether!
Yes it can!
We have to return to the fact that you contracted yourself into an agreement to make repayments on the mortgage advance, and committed to ensure that the repayments are made in accordance with the terms and conditions of the loan.
In instances where one party wishes to be removed from the mortgage, it is not such a simple matter of both borrowers agreeing and signing a piece of paper! The final decision as to whether a borrower can be removed from the mortgage commitment will rest with the lender.
If, however, the remaining borrower can demonstrate to the lender that they are able to maintain the contractual mortgage repayments in accordance with the lender's income criteria, then it is quite feasible for the other party to be released.
Yes it is - but subject to your income capacity!
When applying for a new mortgage, a lender must check that you will be in a position to afford all your financial commitments, including any other mortgage commitments you may already have. This is not only responsible lending, it is also a requirement of the Financial Services Authority (FSA) regulations.
So, provided that it can be demonstrated that your income will support both mortgage commitments, then it is possible to remain on the existing mortgage, as well as join in a new contractual mortgage arrangement.
That depends on all manner of circumstances.
Unfortunately some marital or partnership splits can be acrimonious, and if parties cannot agree between themselves, then it is possible that the courts may ultimately have to decide who is entitled to what. This will inevitably incur legal costs and take a considerable time to achieve a ruling.
If however the split is more amicable, and the circumstances are reasonably simple, especially where children are not involved, then it may be possible for the parties to agree on an equitable division of the collateral and chattels. In these cases, the equity may be split on a 50:50 basis.
It's not uncommon for one party to buy the other's interest in the property. In these instances, the value of the property will be determined, and the remaining equity divided into the agreed proportions. The remaining party will then usually remortgage the property, and on completion of the transaction, through solicitors handover their share, generally less their proportion of the costs of remortgaging.
In order to sell or remortgage the former matrimonial home, you will usually use a solicitor or licensed conveyancer, and whoever arranges that transaction should recommend that each party seeks independent legal advice.
However, if both parties are in agreement with the division of chattels and collateral mortgage, there is no necessity to involve solicitors as to how the proceeds are split. However, an agreement to confirm that the settlement is in full and final settlement of all other future claims should be drawn-up.
Yes of course.
Our qualified and experienced mortgage advisors will be happy to discuss the options that are available to you. Naturally, we'll carefully and sympathetically assess your circumstances, needs, requirements and aspirations and come up with the most appropriate solution for you.
You'll find our service to be friendly, professional, comprehensive and helpful! We're confident that you'll find our personal service and attention will be of great value to you during the course of completing the financial transaction.
So, please don't hesitate to contact us if you would like to discuss your requirements, naturally without obligation! Our mortgage experts are available on Freephone 08000 282 281 up to 10.00pm everyday, and we'll be delighted to provide you with a rapid in-principle decision - whatever your circumstances! Alternatively, you may wish to enquire online at any time instead!
If you don't have a solicitor, and would like details of our panel solicitor, we'll be happy to introduce you. In the case of a remortgage, we can arrange an all-encompassing fixed fee arrangement at a very competitive price. For sale and purchase transaction, similarly fixed fee legal costs are available, to which is added VAT plus disbursements.
Well, that wraps up our look at Divorce and Mortgages, we hope we answered some the questions you may have had regarding this troublesome time. So, if you are thinking of moving on, and buying a property, or remortgaging your present home, and you require some help and advice, get in touch with us here at Shire Direct, we think you'll be glad you did!
The overall cost for comparison is 9.8% APR.
The actual rate available will depend upon your circumstances. Ask for a personalised illustration. APR variable and based on a usual case. Most customers are likely to receive a lower rate or the same rate as our overall cost for comparison rate - learn more about APR.
There are no upfront broker fees.
However, a fee may be charged on successful completion. An indication is that on conforming cases (straightforward applications with no or minimal adverse credit) a fee may be charged of up to 1% of the amount advanced, typically £795 and will depend on your circumstances.
For non-conforming cases (where case research and processing may be more complex due to adverse credit or unusual circumstances), a fee may be charged of up to 3% of the amount advanced, typically £1,995.
THINK CAREFULLY BEFORE
SECURING OTHER DEBTS AGAINST YOUR HOME.
YOUR HOME MAY BE REPOSSESSED
IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
Adding existing debt to your mortgage will increase the repayment term and overall cost.
Are you worried and becoming stressed because you are having problems getting a mortgage or remortgage? Worry and stress no more! Here at Shire Direct we provide tailor made mortgage solutions to suit you, and can usually help with all kinds of circumstances including...
Remember, we're here to help, and would love to hear from you!
Over £2,000 worth of Argos Vouchers to be won in the Shire Direct Grand Prize Draw 2008! Terms and conditions apply - please read article for full details.
Claim £100 worth of Argos Vouchers upon completion of your transaction throughout 2008. Terms and conditions apply - see our Vouchers Special Offer page for full details.
Shire Direct and Shire Direct Mortgages are trading styles of Shire Processing Centre Limited which is
Authorised and regulated by the Financial Services Authority in respect of regulated mortgage products and general insurances.
Registered No: 302389. Commercial funding and Secured Loans are not regulated by the FSA.
Licensed Credit Brokers. Consumer Credit Licence Number: 349999.
Shire Processing Centre Limited is registered under the provisions of the Data Protection Act by the Information Commissioners Office: Registration No: Z6795249. Registered in England & Wales. Company number: 2732202. Telephone calls may be recorded for training, monitoring and security purposes. All applicants must be aged 18-years or over.
