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The marital home when a couple divorce

This article is part of
Guide to Mortgages and Divorce

When deciding what to do about the mortgage and former marital home, Mr Knight says a couple should not assume their mortgage lender will agree to or finance a buy-out of one partner of the other’s interest.

He says: “The mortgage lender’s risk exposure rises if the amount of the mortgage is increased or one of the borrowers is discharged from their liabilities. Depending on the financial position, a lender may still agree to such a proposal but may attach conditions.

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“Partners who move out of the property but who remain as mortgagors need to remember that they may be liable for the entire debt if the partner in residence defaults on their share of the mortgage payments.”

Another option is both parties could move out of the home and let it out jointly, or one could take ownership and find a tenant for the former marital abode, according to Ronan Marrion, mortgage adviser, Cornwall-based Worldwide Financial Planning.