Monday was National Divorce Day, the first working Monday of the year when solicitors report seeing an increase in the number of enquiries for divorce proceedings, with many couples reaching a decision to split over the Christmas and New year period.
According to recent data, the number of couples divorcing later in life is increasing. It happens – with longer life expectancy, people reassess relationships later in life.
Empty nest syndrome can also play a part, with couples deciding to part ways once the children have left home.
For these and a range of other reasons, we are seeing a rise in the number of so-called ‘silver splitters’ looking to get themselves on the property ladder and buying a home on their own.
PRECONCEIVED IDEAS
We get lots of enquiries from people who are in this situation, and a surprising number of clients who believe they won’t be able to get a mortgage on their own, particularly from women.
They often come with preconceived ideas that they are too old to borrow through a mortgage or they don’t have enough income.
Many come from a relationship where the husband would have managed the finances or have little knowledge of what options might be available to them when it comes to borrowing.
But it is often possible to achieve that dream of homeownership, and for many it’s about building that financial knowledge and confidence and getting a greater understanding of what finances might be available to them.
AFFORDABILITY CRITERIA
To start with, lenders will consider many factors when evaluating mortgage eligibility. This includes affordability, credit scores, income, pension and any equity in existing property. Age isn’t generally much of a factor when applying for mortgage.
Some lenders will loan to individuals between 70-80 years old, if the mortgage term ends between by the time they reach 95 years old and you can prove you have the means to cover the monthly payments, either through a pension, maintenance payments, work or other incomes. Many lenders will allow a mortgage to continue into retirement if affordability is sufficient.
Going through a divorce is tough, whatever the circumstances. There are emotional and financial ties, and it can be difficult to know what to do next. For those that are ready to start a new chapter in a new home, don’t write off the dream of homeownership until you have spoken to an adviser.
Even if it’s not a possibility immediately, they will be able to work with you and devise a plan to get there.
Sam Lindsay is a mortgage adviser and founder of My Mortgage Angel
