What Happens to a Joint Mortgage When You Divorce or Separate?

Nothing happens to your mortgage when you divorce or separate. It doesn’t change.

All parties on a joint mortgage are jointly and severally liable for making sure the full capital and interest payments are made every month, irrespective of who lives in the property or any personal agreements between borrowers.

You and your ex-partner are equally liable for the mortgage – this remains true even if the loan is based on the income of one party or if one party moves out of the property. Your lender has the right to chase both parties, either jointly or individually, for payments – plus any costs, legal fees or loss made upon any possible repossession.

Any refusal to pay the mortgage will impact your ex-partner’s credit file as well as yours. You will both enter into arrears, meaning it will be much harder to secure a mortgage or any form of credit moving forward.

Do you have enough money to pay for your own accommodation having left the family home as well as paying the mortgage?  You might need to explain to your ex- wife/husband that there simply isn’t enough money to pay for two homes and that you may need to sell the family home unless you can work together to resolve the situation.  If she/he is desperate to stay in the home, she/he may need to look into other options.

What Can I Do if My Ex-Partner Stops Paying?

Speak to your lender as soon as your ex-partner indicates they won’t be maintaining their share of the mortgage payment.

Lenders sometimes show leniency on cases where they’re kept updated. Some lenders may even consider reducing your monthly payments by converting to interest-only or extending the term.

Other options if your ex-partner stops paying and a transfer of equity is refused include:

• Replacing the person coming off the mortgage with someone who can afford it – family money? Equity release?
• Downsizing by selling the house and repaying the current mortgage – note that neither party can sell without the agreement of the other
• If your ex thinks you can afford it, she/he might apply for Interim Maintenance but the best thing to do is to start thinking long-term as to what she/he wants and how to achieve it.
• Getting a financial remedy order to remove your partner from the title deeds but not the mortgage – they would have no further claim to the property but still be liable for the mortgage
• Can she afford the mortgage on her own?  Remortgaging in your name only if deemed affordable by the new lender

If you would like further information, please do not hesitate to contact us on 01206 577676.