Building societies launch divorce mortgages
Two building societies have launched divorce mortgages to help either the husband or wife continue living in the family home when they separate.
Market Harborough Building Society's mortgage allows equity to be released from the family home to buy another property or to cover rental payments of another flat or house.
The mortgage is available up to 75% loan-to-value and on an interest-only basis. The rates are available below 4% and there is a 1% arrangement fee - although this is subject to a £1,000 minimum.
Aaron Strutt, product manager at Trinity Financial, says: “Market Harborough was the first lender I’ve seen to launch a specific rate for couples getting divorced.
“We have arranged lots of mortgages for clients who are splitting up and generally one of the partners wants to stay in the house. It is a matter of arranging the finance to enable them to buy the other one out.”
Santander and Woolwich for Intermediaries are some of the most generous lenders for accepting court-ordered maintenance income. For example, Woolwich takes all of it into consideration for affordability purposes.
Ipswich Building Society launched a ‘divorce mortgage programme’ just after Christmas. The lender highlighted that most legal firms see a surge in queries for spouses planning to separate over follow the festive period.
If you are separating from your partner and you would like help to secure a mortgage, call Trinity on 020 7016 0790.
Get started today
Speak to one of our mortgage experts. Book an appointment to come and see us or request one of our experts to call you.
