May 27th, 2016
Mortgage brokers are trying to persuade lenders to offer ‘divorce mortgage’s for couples splitting up in their fifties, says the Telegraph. The over-50s account for the fastest increase in UK divorces and over a quarter of them have to sell their properties when they split up. Usually they have equity in their homes but neither partner can afford to buy the other out. Moreover, under current ‘affordability’ rules, most lenders will not lend them the amount they need to do so.
The plan is for ‘divorce mortgages’ to have a relatively short term, giving the ‘stay in home’ partner time to accumulate the cash or to decide to sell and move on, say when children change schools.