There is little consistency when it comes to lending criteria for mortgages for divorcees. Some lenders will accept only 50% of income from child maintenance, while others refuse to accept this as a form of income at all. This has the effect of limiting of a single parent’s access to lending across the mortgage market.
The divorce rate is the highest amongst those in their 40’s and it is increasing amongst the older generation, and this can add to their difficulties when looking for a mortgage. I understand that the Ipswich Building Society has recently announced that all of its residential mortgages will be available to divorcees with 100% of the income from child maintenance being taken into account when assessing affordability, provided it is supported by the Child Support Agency or Court Order and has at least 5 years to run. It will be interesting to see if other lenders also head down this route in the future.
For further help or advice on separation and divorce, please contact a member of our Family Law team.