Divorcee Mortgages are especially designed to meet the needs of those who are dependent on their former spouse for income and who have needs which would make a conventional mortgage difficult to obtain.
Characteristics of a typical Divorcee Mortgage
In addition to the conventional variable rates and availability of up to 75/80% of the property value, the following are available to meet the unique needs of the divorcee borrower:
How does the typical Divorcee Mortgage work?
As mentioned above, with maintenance payments treated as normal income, conventional multiples are applied to the grossed up maintenance (remembering that it is received tax free). You then have a choice between a Standard Variable loan rate (for loans up to 80% of the property's value) or if you have access to a 25% deposit you can opt for the added flexibility of payment holidays, and over and under-payments. There are no redemption penalties, leaving you free to remortgage at anytime should your circumstances change.
Want to find out more?
The above represents only a brief insight into this innovative product, which is best discussed with an Independent Financial Adviser.