What Happens If You Have a Joint Mortgage and Split Up?

Going through a divorce or separation can be stressful, and that stress can multiply if you have a joint mortgage with your ex-partner.

However, if separate from your partner, plenty of options are available. You can buy them out, sell the house, split the proceeds, or keep a share of the property while your ex-partner lives in it.

In this article, we’ll discuss what happens to a joint mortgage when you separate and the steps you need to take to ensure the process is dealt with amicably.

What should I do if I have a joint mortgage with an ex-partner?

If you have a joint mortgage with an ex-partner, you will own an equal share of the property with them. If you split up, both of you have a right to continue living there and are responsible for the mortgage repayments.

Both parties are also jointly and severally liable for the mortgage. This is still the case regardless if one party was to leave the mortgage and/or stop paying the mortgage.

Keep up the mortgage repayments

This is vital. Even if your partner stops paying their share, you must keep the payments up-to-date. You become financially linked when you have a joint mortgage, so if you miss payments or fall into arrears, it will affect the credit scores of both you and your partner.

If you have bad credit or defaults, it may be difficult to remortgage if you intend to buy out your partner’s share.

If you struggle to make the payments, speak to your lender immediately. Depending on the terms and conditions of your mortgage agreement, they may be able to offer you a payment holiday, which might give you enough breathing space.

Remember that you will still pay interest and will have to make up the missed payments at the end of the mortgage term.

What are your matrimonial rights?

Your home is considered a joint asset if you live together as a married couple in the UK, even if there’s only one name on the deed.

As a result, no one can be forced to leave the property while you’re still officially together.

You can obtain a Notice of Home Rights (HR1) from the HM Land Registry to prevent the home from being sold if it’s listed in your partner’s name. It’s important to remember this is only valid until you’ve agreed a divorce settlement.

If the mortgage was in one partner’s name before you were married, the other person has less of a claim on the property unless there’s a prenuptial agreement stating otherwise.

What are your options if you split from your partner?

You have a few options if you split up with your partner and have a joint mortgage.

Here are some of the things you can do:

Buy out your partner

One of the easiest solutions is to buy out your partner. Whether you continue to live in the house will depend on this, but it’s an option if you have children, for example.

A solicitor will be important during this process, as they can help you agree upon a value for the property prior to remortgaging.

Once you’ve bought your partner out, you can remove their name from the mortgage and put it in your name.

Sell the home and split the proceeds

Another easy solution if you split from your partner is to sell your home and split the proceeds between you.

It’s important to note you may have to split the debt between you if the amount owed is more than the value of your home.

As easy as it sounds, it’s not always the most straightforward decision, especially if children are involved. If one or neither of you is willing to sell the property, you might have to find another solution.

Keep a share in the property

If one of you is happy to move out but wants to retain a stake in the property, you can transfer part of the value to the other partner.

One of you will have a majority stake in the property, but the other partner will receive a percentage of the profits when the property is sold.

Pay off what remains of the mortgage

If you only have a few years left until the end of your repayment period, it might make sense to continue making the repayments. Once you’ve paid the mortgage, you can sell the home and split the proceeds.

Get a Martin or Mesher Order

You can take out a Martin or Mesher Order if you live in England or Wales. They help resolve family disputes in the event of a divorce and are issued by a court.

• Martin Order: A Martin Order allows one party to occupy the former matrimonial home for life or until they re-marry. They’re commonly used if no children are involved and useful if one party wants to delay the property sale.
• Mesher Order: A Mesher Order allows the sale of the property to be delayed until a certain date. Once that date is reached, the property will be sold, and the proceeds will be split between the two parties. It allows one party to remain living in the house and is common if children are involved.

Can I Remove My Ex-Partner’s Name from the Mortgage?

Yes, you can apply for a transfer of equity so the property is transferred into your name only, and your ex-partner’s name is removed. The process is easier if your ex-partner agrees; otherwise, you may have to consult a solicitor before you proceed.

You will have to apply for a new mortgage once the process is complete, and you might not pass the lender’s affordability checks if they’re not sure whether you can make repayments on a sole income.

A transfer of equity is not the only option you have; here are a few others you can take:

• Replace the person leaving the joint mortgage with someone else who can afford to make the repayments.
• Move home and downsize by selling the house and repaying the current mortgage. This will need the consent of your ex-partner, as neither party can sell without the agreement of the other.
• Get a court order to remove your ex-partner from the title deeds, not the mortgage. They will still have to repay the mortgage but they won’t have any further claims to the property.
• Get a remortgage in your name only, provided you pass the lender’s affordability checks.

Speak to a broker experienced in these cases

If you have any remaining questions about what happens to your joint mortgage or what you should do next, speak to a broker. They’ll be happy to discuss all your options and give you personalised advice.

An easy way to find a specialist with the right experience is to use our free broker-matching service. We’ll arrange a no-obligation chat with someone who regularly assists with situations like this and who can give you peace of mind. Just give us a call on 0330 818 7026 or contact us online.