Question for a Mortgage Broker divorce settelments .....
Question for a Mortgage Broker divorce settelments .....
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Bit of a Unit

Original Poster:

7,357 posts

227 months

Wednesday 14th November 2012
quotequote all
A friend of mine was left by her husband last year and they are about to finalise a financial settlement and she will need to remortgage. She is worrying about this to the point of making herself ill so I would like some advice if at all possible.

She has the Marital home and is staying their with her son, she was the main bread winner so has continued paying the mortgage. He makes no contribution to the household or his son. He also left her with the marital credit card debts totaling around £40k. From talking to her the cost of the credit cards is crippling her and she isn't reducing this debt. Equity in the house is circa 70K on a property value at £185K

The husband is pushing for a lump sum of half the equity and a fat slice of her pension, less half the marital debts so he may end up with very little, but if he wont relinquish his claim on her pension she will need to pay him off.

She hasn't missed a mortgage payment but has picked up a CCJ for a small amount which has been settled and earns a basic salary of £65K and bonuses have taken this to over £100k in the last 3 years. I am convinced she should have no problem obtaining a mortgage despite the CCJ but will need a good broker??

Any thoughts on the above as I am aware there are a few good mortgage guys on here but she is too scared to apply for fear of hearing no.

I thought I'd ask before I try to get her to a mortgage broker when I next see her.

Many thanks

paulrockliffe

16,615 posts

257 months

Wednesday 14th November 2012
quotequote all
Don't know the answer, but she should definitely access her credit report to see what it says, it'll give her a better idea of what is and sin't a problem. I'd be inclined to agree with you that it won't be an issue, but I'm no expert.

Sarnie

8,373 posts

239 months

Wednesday 14th November 2012
quotequote all
I'm a Mortgage Broker. A good one I'd hope!

I've read your post but I still can't quite decipher what she is wanting to do? Remortgage to clear all of the CC's? Pay off the CC's AND pay off the Husband?

The key to this is going to be how the CCJ is reflected on her credit file (it may not be recorded if she cleared it within 30 days) and the LTV.

PM me if you'd like?

Bit of a Unit

Original Poster:

7,357 posts

227 months

Wednesday 14th November 2012
quotequote all
In an ideal world, remortgage and pay off the husband and the CCs.

I will call her and get a little more detail. Thanks for the replies

Sarnie

8,373 posts

239 months

Wednesday 14th November 2012
quotequote all
Bit of a Unit said:
In an ideal world, remortgage and pay off the husband and the CCs.

I will call her and get a little more detail. Thanks for the replies
The max she will be able to go to will be 90%, which on a £185k property would be £166,000.

This leaves £11.5k to give to the hubby if she is to clear the £40k CC's.

This is the best case scenario, as this will be classed as Debt Consolidation you may even be limited to 85% or less depending on the lender.

The CCJ status may push the LTV offered down further too.....

Bit of a Unit

Original Poster:

7,357 posts

227 months

Wednesday 14th November 2012
quotequote all
Thanks very much indeed for the swift response.

supersport

4,638 posts

257 months

Friday 16th November 2012
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I think that the husband will not get half. The division is based on needs and if she has the child(ren) then she has a greater need and so will probably get more. It sounds like there isn't a great deal of assets due to the debt. He may get the shirt on his back.

soprano

1,613 posts

230 months

Wednesday 21st November 2012
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A county court judgment is not registered for I believe 28 days, if she paid the debt within that time it should not affect her credit rating

anonymous-user

84 months

Wednesday 21st November 2012
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I'm surprised she is not able to reduce the cc debt if she's on £100k.