Keeping the family home in Felixstowe after a separation

Client: A single parent of two · Branch: Felixstowe · Need: A transfer of equity remortgage into her sole name to buy out her ex-partner

The challenge

Karen (name changed) and her ex-partner jointly owned a three-bedroom home in Felixstowe worth around £280,000, with £120,000 left on the mortgage. Their fixed rate was due to end in five months.

Karen wanted to stay so her children could remain at their local school. That meant moving the mortgage into her name alone and borrowing an extra £80,000 to pay her ex-partner his agreed share. Her current lender would only consider her £38,000 salary, which left her about £29,000 short of the £200,000 she needed.

What we did

• We started straight away, because most lenders let you secure a new deal up to six months before your current one ends. That gave Karen time to avoid her lender’s standard variable rate.
• Our adviser found lenders that count child maintenance as income when it’s paid under a formal arrangement, such as a court order or the Child Maintenance Service, and helped Karen gather the evidence.
• We worked with both solicitors on the transfer of equity, so the new mortgage and the buyout completed on the same day.
• With one income now supporting the household, we reviewed her protection and arranged life insurance and income protection to match the new mortgage.

The outcome

Karen’s new £200,000 mortgage, at 71% loan to value on a five-year fixed rate, completed two weeks before her old deal ended. She never paid a month on the standard variable rate, and the children didn’t have to move.

Is your current deal ending, or are your circumstances changing? Explore your remortgage options.