Divorce - Taking over mortgage on my own - Please help!!

[mrsflowers]

Hi, I hope someone can help me. I am getting divorced, we have a joint mortgage but because I have an 8 year old son, my husband wants to sign house over to me (including all equity) and for me to take on mortgage.
I approached my mortgage provider (Nationwide), however there is a �2K shortfall on the mortgage amount. They say they only take my salary into account and not any additional income such as tax credits, they will not even take maintenance payments into account until after a full year. I'm really stressed as its a fairly small mortgage I need approx �38,000 as I can easily afford the monthly payments. The tax credits and maintenance will be a regular source of income which I don't forsee changing. Is this the case for all mortgage providers does anyone know or do others take your whole income into account.
I hope someone can advise me as I'm really worried.
Thanks.

[Kaz081992]

Unfortunatley this is probably true of most mortgage providers. Best option you have is to go to an independent financial advisor who can shop around for you and will know which lenders will be more flexible.

[Ethel]

There is an option available to you - a self certified mortgage.

This is where you declare your total income without proving it - no payslips, bank statements and so on required.

A larger deposit is required, which you have by way of equity in the property, and a higher rate of interest is normally charged.

I would not usually advise such a mortgage, but needs must and I think for such a relatively small mortgage and your needs then it is worth considering. Bear in mind that after a year or two, you will probably be eligible for a 'standard' mortgage at a better rate, so be sure to check for any exit fees, redemption fees or any type of fee for switching within the first few years. Make sure such a fee is reasonable.

Self certified mortgages can still be variable, capped, fixed rate and all the other options that are available with standard mortages.

As always, be very sure you can afford the repayments plus 10% comfort zone in case of rate rises and so on.

Do not take the first mortgage offered. Try at least three different places. I hope your ex will be understanding and allow you the time you need to find the right mortgage.

Good luck

[Oneeyedvic]

No, this is not normal behaviour - go to an independent mortgage broker in your area. They will be able to source you a lender who will look at your affordability rather than an income multiplier.