The way property divorce is handled could be soon to change, with the concept of a ‘divorce mortgage’ underway by lenders.
According to The Telegraph, lenders are considering producing an innovative mortgage to respond to statistics that show that over-50s, who are more likely to own their own home, make up the biggest percentage of divorces in the UK. The research also finds that 28 per cent of divorcees are forced to sell what was once their family home.
The ‘divorce mortgage’ idea would see one half of the marriage able to borrow enough money to buy out their partner for a fixed period of time, allowing them to stay in their home.
It would be particularly useful for families with children, or for those divorcees who want to stay in the home, even when divorcing their other half. With this option potentially available by the end of the year according to reports, it could lead to an extra contentious issue when it comes to divorce and your home.
At present, the house is one of the first concerns when looking at a divorce. Looking at your savings and shares, the equity in your house and the options for each partner to get a mortgage on a new or on their existing home are all important factors in moving forward.
For divorcing couples, you should find out how much you still owe on your mortgage, and get your home valued by two separate independent estate agents. If you do choose to sell up, be sure to count estate agent and conveyancing fees into your budget for looking for a new home.