By including child maintenance
January is the peak month in the year where couples file for divorce, and subsequently there are an increased number of single parents seeking a new mortgage arrangement. With new affordability checks, it is frequent that a single income doesn’t meet the requirements. However, what if child maintenance could be included in the calculations?
Season for separation
Statistics show, the first working Monday of the year is the highest regarding couples filing for divorce following Christmas bust-ups, and, the month of January as a whole is, sadly, the peak season for separations (The Telegraph).
If you find yourself in this situation and need advice on a new mortgage arrangement, Dental & Medical Financial Services can discuss your situation and connect you with lenders that are offering a “Divorce Mortgage Programme”.
Favourable affordability checks
A typical scenario is that a single mum, working part-time, or full-time on a lower income, wouldn’t qualify for the mortgage affordability checks alone, and many lenders don’t take into account child maintenance payments as a source of income.
However, there are now a selection of lenders who will count 100 percent of the child maintenance when assessing affordability, which means mortgages can still be accessible for divorcees.
Typically, maintenance payments need to be supported by the Child Support Agency (CSA) and have at least five years remaining, or sometimes evidence that the payments will be made until the end of the loan term. On occasions a court order or solicitors letter is required, as well as copies of past statements showing a history of the monthly payments in the bank account.
So, whilst some paperwork is necessary, these lenders are throwing a lifeline for divorcees to be able to at least obtain the finances required to secure their home, during an often difficult emotional time of life.
Dental & Medical Financial Services have contacts with excellent high-street lenders that cater for those home owners going through a divorce.
Tel: 01403 780 770