What happens to the mortgage during a divorce?
When a marriage ends, deciding what happens to the family home is one of the hardest financial questions. If you still have a mortgage on the property, the issue becomes even more complex. Both partners may rely on the home for security, and both remain legally tied to the mortgage until it is paid off, transferred, or a court decides otherwise. This guide explains the legal responsibilities, risks, and options around mortgages in divorce. We’ll cover what happens to joint mortgages, arrears, refinancing, buyouts, negative equity, and even situations where your name isn’t on the deeds. We’ll also explore how the courts can intervene, and how services like Habello can give you a quick, guaranteed route out of mortgage stress.
Sorting out the mortgage is central to divorce settlements because lenders still see both borrowers as jointly liable until arrangements change.
- If both names are on the mortgage, both remain responsible for repayments until the loan is settled, refinanced, or the property is sold.
- Options include selling the home, one partner buying out the other, refinancing into one name, or keeping the mortgage jointly under a court order.
- Falling into arrears affects both partners’ credit records and could lead to repossession.
- Negative equity can complicate matters, as debt as well as equity must be divided.
- Courts can order a sale, delay a sale, or transfer ownership depending on fairness and children’s welfare.
- Habello offers a way to sell quickly and clear the mortgage in weeks rather than waiting months.
Joint mortgage liability
If you and your ex-partner are named on the mortgage, you are both jointly and severally liable. This means:
- The lender can chase either of you for the full monthly payment, not just “your half”.
- Even if one of you moves out, you remain liable until the mortgage is paid off or refinanced.
- If payments are missed, both credit scores are affected, and the property could eventually be repossessed.
Example:
Emma moved out of the marital home but assumed her ex, Ben, would keep paying the mortgage. Ben missed two payments, and both their credit ratings dropped. When Emma later tried to get a mortgage in her own name, the arrears appeared on her record, making it harder to borrow.
Options for dealing with the mortgage
1. Sell the home
The most straightforward solution is to sell the property, clear the mortgage, and divide any equity (or debt if in negative equity).
- Pros: Clean break, debt cleared, both free to move on.
- Cons: Disruptive if children are involved, delays if the market is slow.
2. One partner buys out the other
One party may want to remain in the home. In this case, they can:
- Obtain a valuation (often RICS or estate agent based).
- Pay their ex-partner’s share of the equity (via savings, a remortgage, or offsetting other assets).
- Apply to the lender to transfer the mortgage into their sole name.
Worked example:
House value: £300,000
Mortgage: £150,000
Net equity: £150,000
If one spouse keeps the home, they must pay the other £75,000 (half the equity). They would also need to pass affordability checks to take the mortgage in their sole name.
3. Keep the joint mortgage (Mesher or Martin orders)
In some cases — usually where children are involved — the court allows both parties to remain on the mortgage while one stays in the house.
- Mesher order: Sale is postponed until children reach 18 or finish education.
- Martin order: Sale is delayed until the occupying spouse remarries, cohabits, or chooses to leave.
These orders provide stability for children but mean both partners remain tied to the mortgage for years.
4. Refinance the mortgage
If one partner wants to take over the mortgage entirely, they must apply to remortgage in their sole name.
- Lenders reassess affordability based on one income.
- Refinancing can result in a higher interest rate if your income or credit score is weaker post-divorce.
- A mortgage broker can help find lenders willing to approve under tougher circumstances.
Negative equity in divorce
Negative equity occurs when your home is worth less than the outstanding mortgage.
Example:
House value: £180,000
Mortgage: £200,000
Negative equity: -£20,000
If you sell during divorce, the debt must still be repaid. Courts may order:
- Both parties to share the shortfall.
- One party to cover more if they have greater financial resources.
- Postponing a sale until the market improves.
This can be especially stressful, but cash buyers like Habello may still help by purchasing quickly and clearing the mortgage, even if equity is low.
If your name isn’t on the deeds
Even if you’re not on the property deeds, as a spouse you may have matrimonial rights.
- You can register a Notice of Home Rights with HM Land Registry, preventing your ex from selling without your consent.
- If you’re cohabiting but unmarried, the rules are different: you may need to prove financial contributions to claim an interest under the Trusts of Land and Appointment of Trustees Act (TOLATA).
This area can be complex, so legal advice is essential.
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Court powers over mortgages in divorce
If you and your ex cannot agree, the court can decide under the Matrimonial Causes Act 1973. Possible outcomes include:
- Immediate sale of the property.
- Deferred sale under a Mesher or Martin order.
- Transfer of ownership into one spouse’s name, subject to lender approval.
- Offsetting assets, e.g., one spouse keeps the home but the other receives a larger share of pensions or savings.
- Refusal of sale in cases where children’s welfare would be harmed.
If a sale is ordered and one spouse refuses to cooperate, the court can even authorise someone else to sign the sale documents on their behalf.
Practical steps if you have a mortgage and are divorcing
- Contact your lender early – they may offer short-term repayment relief or flexibility.
- Keep making payments – missing even one damages both partners’ credit.
- Get a valuation – know the true market value before discussing equity splits.
- Consult a solicitor – for advice on rights, notices, and settlement options.
- Explore quick-sale routes – Habello can provide a benchmark of what you’d walk away with immediately.
Scenarios: how it plays out
- Buyout scenario:
Tom and Sarah owned a £400,000 house with a £200,000 mortgage. Sarah wanted to stay with the children. A RICS valuation confirmed £200,000 equity. Tom agreed to take £100,000 via offsetting savings, while Sarah refinanced into her sole name. - Negative equity scenario:
Mike and Jenny’s house was worth £220,000, but their mortgage was £240,000. They agreed to sell, split the -£20,000 shortfall, and each moved into rented accommodation while reorganising finances. - Cash buyer scenario:
Alicia and James were ordered by the court to sell within 3 months. Concerned about delays and chain collapses, they accepted a cash offer from Habello at 85% of market value, clearing their mortgage in 18 days and moving on with certainty.
FAQs
Can I remove my ex’s name from the mortgage?
Only if your lender agrees and you can pass affordability checks to take on the loan alone.
Will divorce affect my credit score?
Not directly. But if joint payments are missed, both credit files are impacted.
What if we can’t afford to sell because of negative equity?
You may need to postpone, negotiate debt sharing, or explore a cash buyer route to clear the mortgage.
Should I use a mortgage broker after divorce?
Yes — they can help you refinance in your sole name and find lenders who consider your post-divorce circumstances.
Can the court stop a forced sale if children are involved?
Yes. Courts prioritise children’s welfare and often delay sales until they reach adulthood.
What if only my ex is on the deeds?
If you’re married, the property is usually a matrimonial asset. You can register Home Rights to protect your position.
Recap: what happens to the mortgage during divorce
Divorce doesn’t remove your mortgage obligations. Both partners remain responsible until the loan is repaid, refinanced, or a court orders otherwise. The options range from selling up, buyouts, and refinancing to court-imposed deferred sales.
Where speed and certainty are needed, Habello provides an immediate alternative — with guaranteed cash offers that clear your mortgage and help both parties move forward.
Sell with Habello
If your divorce means you need to resolve your mortgage quickly, Habello can help:
- Free valuation within 48–72 hours.
- Guaranteed cash offer and completion in as little as 7–21 days.
- No estate agent fees and legal costs covered with partner solicitors.
Take control of your mortgage situation during divorce with Habello’s fast and certain solution.
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