What Happens to a Joint Mortgage After Divorce?

Knowing what to do with your joint mortgage after divorce can be tough, but there are options to consider. We understand how difficult divorce can be, more so when there’s shared property or children involved. 

A common question is, can you keep a joint mortgage after divorce? Well, we’re here to tell you. To learn more about whether or not you can keep a joint mortgage after divorce in the UK, continue reading. 

Can You Keep a Joint Mortgage After Divorce?

Yes, you can keep a joint mortgage after divorce. There’s no law to say that you can’t keep a joint mortgage after divorce. However, opting to remain financially tied to your ex-spouse after separation can become tricky, especially while living apart.

It’s important to understand what it means to keep a joint mortgage after divorce, and the ongoing responsibility that comes with it. 

Does a Joint Mortgage Change After Divorce?

A joint mortgage doesn't change after divorce unless the property is sold or someone removes their name from the loan. From the lender's perspective, mortgage repayments must continue to be paid on time by both parties, despite the divorce. This means that all legal responsibility regarding the property remains joint. 

Who is Responsible for Paying a Joint Mortgage After Divorce?

As mentioned, both parties are responsible for paying a joint mortgage, even after divorce. Regardless of your marital status, if you share a joint mortgage with someone, you’re both financially responsible for paying off the debt that you owe.

The only time the responsibility status changes is if you sell the property or remove your name from the mortgage, which stops one party from being liable for ongoing repayments. 

Why Do People Keep a Joint Mortgage After Divorce?

We know what you might be thinking - why would you keep a joint mortgage after divorce? Understandably, most divorcees would prefer no financial ties to their ex-spouse. But for many, keeping a mortgage seems the right option. 

There are several common reasons why couples keep a joint mortgage after divorce: 

• Provides stability for children involved
• Allows you to keep the family home
• Keeps favourable interest rates
• Provides more time to find the right moment to sell in the future

Despite certain reasoning for keeping a joint mortgage after divorce, this option won’t work for everyone, and there are other mortgage alternatives to consider. 

Is it Advised to Keep a Joint Mortgage After Divorce?

Although possible, it’s not always advisable to keep a joint mortgage after divorce. While keeping a joint mortgage may work for some individuals after divorce, it proves complex for most. Despite being separated, both you and your ex-spouse remain legally responsible for paying off the shared mortgage. 

Although this may seem easy, issues can arise. If you're no longer living together, and only one of you resides in the property, disputes are likely. Ongoing difficulties have the potential to affect timely payments, which can be detrimental to your credit score and put you both at risk of losing the home.

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Alternative Mortgage Options to Consider After Divorce 

If keeping a joint mortgage after divorce isn’t the right option for you, there are other options available. Let’s find out more. 

Sell the Property 

Selling your shared property is the most streamlined option for divorcees who no longer want a joint mortgage. Opting to sell the property allows both you and your ex-spouse to move on peacefully while releasing equity. Once the sale is complete, you can both divide the proceeds and go your separate ways. 

Buyout Your Ex-Partner 

One of you can buy out the other by covering their property shares. This is possible if you have enough money to cover the shares, or by remortgaging the property to fund the buyout.

Buying out an ex-spouse makes one of you the main borrower, making them solely responsible for all future repayments. Although this is an option to think about, lenders will need to assess affordability beforehand.

Remove Your Name From the Mortgage

Taking over a mortgage after divorce can be complex in cases, but it is doable. The process involves a transfer of equity - where either you or your ex-spouse removes your name from the mortgage and property title. To do this, both parties must agree on the name removal, and your lender must be made aware. 

Tackling Joint Mortgage After Divorce at Bell Financial Solutions

At Bell Financial Solutions, we help tackle issues regarding joint mortgages after divorce. Our team of trusted experts offer a tailored service to better understand your circumstances after divorce. 

We can look at your mortgage options and how beneficial they'll be to both parties. Together, we can come up with a clear plan of action to ensure everyone is happy with whatever decision is agreed upon. Don't struggle with your joint mortgage after marriage - allow us to step in and find the best solution.

‍Contact us today to learn more about our award-winning advice and services.