One of the main concerns for couples who are separating and divorcing is how they are going to house themselves and their children following the breakdown of the relationship. Rising mortgage rates are impacting divorcing couples and making separation more stressful.

The recent leap in mortgage rates means many homeowners face far higher monthly costs. Those on variable rate deals have seen an almost immediate rise in their monthly repayments. Borrowers on fixed-rate deals have not seen any difference in their monthly payments, however, when their deal expires the new deals available are forecast to be much more expensive. 

This is negatively impacting on divorcing and separating couples with some deciding to sell their homes quickly, whilst others are waiting it out to see whether the financial landscape is going to change. Some couples are finding they are being priced out of the property market whilst others are turning to renting in the interim.

How can the court help?

There are a range of different orders that the court can make for divorcing couples and below are just a few which may assist you:

• Orders for the sale of property
• Orders for transfer of property
•  A Mesher Order, where the children stay in the family home with one parent for a period of time, this can sometimes be until the youngest child is 18 or 21
• Interim maintenance to the financially weaker spouse to allow them to meet their needs which may include the mortgage payments. Some mortgage lenders take account of maintenance payments when assessing how much they will lend which can greatly assist in increasing your mortgage capacity. 

Consequences of a Quick Approach

Taking a quick approach to dealing with property could mean you inadvertently end up agreeing a financial settlement which is not necessarily in your best interests and doesn’t meet your needs. By moving quickly, you may have also given away your bargaining power. Selling the house before an agreement is made on the financial settlement can be risky. Once someone has their share, they are less reluctant to agree to something different or even enter negotiations. 

Here at Neves, we have clients approach us at every step of the process; some may have already started the divorce process and others will already have sold the house and agreed the financial settlement.

The importance of early advice

Before you take any action; sell the house, start the divorce or agree the financial split it is so important that you consult a specialist family lawyer to discuss your options. You should also take advice from your bank or broker to work out the affordability of a mortgage. 

At Neves, we offer a 60-minute initial fixed fee consultation for £150 plus VAT which will enable you to obtain that all important advice to help you make decisions that are right for you. Get in touch with a member of our Family Law team by calling 0330 0945 500, emailing family@nevesllp.co.uk or completing our Contact Form and we'll get back to you.