Archive for the ‘Strict Lending Criteria’ tag
A lack of mortgages and stricter lending criteria mean unhappy couples are having to stay together because they cannot find a way of living separately.
Suzy Hamshaw, a family lawyer with Berkshire law firm, Charles Lucas & Marshall says increasing numbers of couples are starting divorce proceedings only to call a halt – because they realise they won’t be able to source a mortgage to fund their new living arrangements.
“If a couple is splitting the equity in the family home, often it means the deposit they have for their next home is not particularly large,” says Suzy Hamshaw. “Stricter lending requirements often mean they do not have a big enough deposit to buy another home – and they cannot borrow enough to bridge the gap.”
Charles Lucas & Marshall says it has noticed a rising trend over the last year with couples coming to see them seeking divorce advice – only for the process to come to a grinding halt because couples realise they cannot afford to split.
“It is a very harsh reality check for many couples,” says Suzy Hamshaw. “But if the equity in a property is being split and lenders are looking for a 20 per cent deposit for a new mortgage application then often it can’t be done.
“In the past, unhappy couples often stayed together for the sake of the children – but now they are just as likely to stay together because they cannot afford to divide up the family home. Couples feel stuck in a relationship out of which there is no economic escape.”
For further information contact Suzy Hamshaw on 01635 521212 or email@example.com