What are my divorce and mortgage buyout options?

Divorce rates in the UK have been climbing, said a report in the Telegraph newspaper on the 17th of April 2020. Indeed, a story in the Evening Standard on the 6th of January 2020 revealed the staggering statistic that, in that week, the volume of online searches for “I want a divorce” was 230% higher than in the first week of January just the year before.

In the trail of many of those divorces are likely to come difficulties with any mortgage arranged during happier times. So, let’s take a closer look at some of your mortgage buyout options following a divorce.

Selling up

Perhaps the most straight forward solution to the problem of dividing equity in a mortgaged home is simply to put it on the open market and sell it.

Provided there is no negative equity, the outstanding mortgage can be paid off using the proceeds of the sale, and the remaining equity may be treated as a marital asset in the normal way and be divided accordingly. If that div…

Read more
  • 0