Fear of falling off the property ladder is putting people off divorce but there are options
The issue has prompted Skipton Building Society has expanded its 100 per cent mortgage offer, originally aimed at first time buyers, to include people who have previously owned a home but who have fallen off the property ladder due to divorce.
The Yorkshire based lender says people who have divorced are a key market for the recently expanded zero deposit mortgage offer and those who haven’t owned a home in the last three years can apply.
Head of family law, Rachel Spencer Robb, from LCF Law, said: “It’s encouraging that mortgage lenders are starting to tailor their products to those divorcing as one of the major concerns clients typically have is how a divorce will impact home ownership.
“Understandably when dividing assets like the home in a divorce, one of the parties will typically move into a rented property and for lots of people getting enough money together for a deposit to climb back onto the property ladder can be very difficult.
“The cost of living alone is putting many people off divorcing, which is not ideal. Separating parties are often worried about being stuck with high rental payments when moving out of the marital home and finding and paying for rental accommodation can be a real barrier for some, who would otherwise divorce sooner.
“I would like to reassure anyone who feels they must stay together because otherwise they might never own a home again, that they have options. The first step is to get legal advice.
"With the new no-fault divorce system in place, which has removed the need for evidence of one party being to blame for the failure of the marriage, the acrimony and conflict that previously arose during a marriage breakdown has been much reduced, which is incredibly positive, particularly where children are involved.
"Now, we need to make sure that concerns surrounding home ownership and finances don’t become the next barrier to divorce.”