Mortgage but no 'official' income.

[spunkypumpkn]

My friend is in the middle of a divorce. She doesn't work, as she has given up her career to care for their three children. The house is going to be signed over to her, and he will keep some other assets that they have. He will continue to pay her a set amount which will cover the mortgage, bills and living cost (he has a good salary, and DONT feel sorry for him!). However, my friend is concerned that when it comes to remortgage with another company which she can do in October, she'll struggle to find any financial institution to take her on, as she has no official income.... only what her soon-to-be ex-husband will be giving her.

What are you thoughts on this? Is she right? Surely shes not the first woman to be in this situation, and mortgage providers must have some way around it.

Also... it really IS a FRIEND. I'm VERY happily married and intend to remain so till the day I die!

[mystress]

*************,

I am sorry but I am a bit confused.IF her ex is paying the Mortgage etc,why would she want to re~mortgage?

Sorry if I am being dense! LOL

[mystress]

Sorry AB's over zealous auto censor has removed your username(in my reply),because it contains a "naughty" word,odd really because it doesn't when YOU post! LOL

[Mrs_Pegasus]

Hi There

If there is a court order on the payment then your friend can self certify the income.  However, I think the minimum deposit is 25% and she may well have to pay a higher interest rate.

[Uzoma]

If she can prove that she can afford the new mortgage (usually bank statements & proof of income through benefits & confirmation of the 'set amount' you mentioned) & the equity in the home is about 25% (ie. if the house is at least worth 1.33 times the amount of the mortgage), then as Mrs_Pegasus said the loan can be self certified.  However, mortgage brokers can somehow 'sense' desperation so shop around cautiously because if she gives away the fact (consciously or not) that she thinks she's only entitled to a high rate, they'll probably give her a high rate to boost their commission.  A self certified mortgage is not necessarily a high interest rate.

[morg_monster]

i have been waiting for a question like this since monday when I saw an article in Metro about the Yorkshire building society's new mortgage product 'Fresh Start'

http://www.ybs.co.uk/mortgages/freshstart/index.jsp

It is specifically aimed at divorce(e)s and includes various goodies but best of all, up to a 100% loan,  and they include maintenance payments when calculating your income for working out how much they can lend.  Sounds ideal and high time someone thought about this increasing part of the market.

[Mrs_Pegasus]

Great idea morg monster but its only really offering what companies like Standard Life offer.  Higher interest rate and a long lock in period.  However, it is from a high street lender which gives confidence but over the long term it is an expensive option.

All the lenders I have spoken to will take maintenance payments into consideration as long as there is a court order for it or CSA arrangement. 

[Tinkerbell1]

Try speaking to her own bank first.