Falling off the property ladder due to divorce

ACCORDING to Yorkshire law firm LCF Law, a significant number of people are putting off divorce due to fears about getting back onto the property ladder.

The issue has prompted Skipton Building Society has expanded its 100 per cent mortgage offer, originally aimed at first-time buyers, to include people who have previously owned a home but who have fallen off the property ladder due to divorce.

The Yorkshire-based lender says people who have divorced are a key market for the recently expanded zero deposit mortgage offer and those who haven’t owned a home in the last three years can apply. Head of family law Rachel Spencer Robb from LCF Law, says: “It’s encouraging that mortgage lenders are starting to tailor their products to those divorcing as one of the major concerns clients typically have is how a divorce will impact home ownership.

“Understandably when dividing assets like the home in a divorce, one of the parties will typically move into a rented property and for lots of people getting enough money together for a deposit to climb back onto the property ladder can be very difficult.

“The cost of living alone is putting many people off divorcing, which is not ideal. Separating parties are often worried about being stuck with high rental payments when moving out of the marital home and finding and paying for rental accommodation can be a real barrier for some, who would otherwise divorce sooner.

“I would like to reassure anyone who feels they must stay together because otherwise they might never own a home again, that they have options. The first step is to get legal advice. The new no-fault divorce system in now in place so the acrimony and conflict during a marriage breakdown has now been reduced.”