Life Changes and Your Mortgage

Divorce, Redundancy, and Retirement

Life rarely stands still. Relationships change, careers take unexpected turns, and eventually retirement comes into view. While these moments can bring challenges, they also raise important questions about your mortgage. Understanding how life changes affect your borrowing can make the difference between feeling stuck and feeling in control.

Divorce and Separation

Divorce is one of the most stressful life events, and dealing with a mortgage on top of it can feel overwhelming. If both partners are named on the mortgage, you are both responsible for repayments until the lender agrees otherwise. Options often include:

• Selling the property and using the proceeds to clear the mortgage

• One partner buying out the other’s share (subject to affordability checks)

• Switching the mortgage into one person’s name if the lender agrees

It is important not to stop making payments while decisions are being made. Missed payments can harm both parties’ credit records and limit future options.

Redundancy and Loss of Income

Losing a job or experiencing a sudden drop in income is another situation where mortgage worries can rise quickly. If this happens, it is best to contact your lender as soon as possible. Many lenders have policies to support borrowers in financial difficulty, such as:

• Temporary payment holidays

• Reduced payments for a set period

• Extending the mortgage term to lower monthly costs

Speaking to a mortgage adviser can also help explore whether switching products or restructuring the loan could ease the pressure.

Retirement and Mortgages

Mortgages used to be thought of as something to clear before retirement, but more people now carry borrowing later into life. Lenders have adapted, with products designed specifically for older borrowers, including:

• Retirement Interest-Only (RIO) mortgages, where you pay interest each month and repay the loan when you sell the property, move into long term care or pass away

• Lifetime mortgages, which allow you to release equity from your home, with loan being repaid after death or entry into long-term care

These products are not for everyone, but they can provide flexibility for people who want to stay in their homes while managing finances in retirement.

Taking Control During Change

The common thread with all major life events is that ignoring the situation makes things harder. Acting quickly, being open with your lender, and seeking advice gives you the widest set of options.

• Keep making payments if you can

• Contact your lender early - most will want to help

• Seek expert advice before making big decisions

• Remember that mortgage solutions do exist for complex situations

Divorce, redundancy, and retirement are big moments that affect more than just your personal life. They can reshape your financial picture too. Mortgages do not need to add to the stress. By understanding your options and asking for advice, you can find solutions that fit your changing circumstances.

For more information, please get in touch.

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