When you apply for a new mortgage, there are many different documents that you need to provide to assess your mortgage and determine how much mortgage you can get. If you were previously divorced, the lender will often request a number of additional documents from you. These extra documents have to do with your divorce. Have you been divorced in the past? In this article you can read which documents you can collect for the mortgage application after a divorce.
Apply for your divorce
Are you currently divorced or considering breaking up? Then visit the page of Q Divorce Advisors about online divorce. If you have been divorced before, it is important to indicate this when you apply for a mortgage. This also applies if you have ever separated and the registered partnership has ended. It is important that you let us know, as it has consequences when applying for a new mortgage. What do you need to let know?
Let your mortgage adviser know that you have been divorced before and you must also indicate this when you receive or pay alimony to your partner. In both situations it can have consequences for the mortgage process. There is, however, a difference between alimony for partners and children. Were you divorced before 1 July 1994 and have you not made any agreements about the duration of the maintenance? Then the alimony automatically lasts for life. If you have arranged the divorce after this date, the maintenance will last for twelve years if you have children. This also applies if you have no children and the marriage has lasted more than five years. If you have been together for less than five years and you have not had any children, the alimony obligation is shorter. The duration of the alimony is then the same as the duration of the marriage.
Receiving or paying child support does not mean that this is regarded as income by the lender. The amount of child support cannot therefore be used for the mortgage. The alimony is intended for your children. The amount will have no effect on the amount of mortgage you can get. If you pay child maintenance yourself, this will not affect your maximum mortgage.
Receiving spousal maintenance does have a positive effect on your mortgage. That doesn’t always have to be the case for everyone. The mortgage provider cannot include this income in the test income, as it is not sustainable and stable in nature. After all, the alimony that the partner receives, as described above, is of limited duration for many. The ex-partner does not receive spousal maintenance for the rest of his life. In addition, it can also happen that your ex dies or can no longer afford alimony due to unemployment. If you pay spousal maintenance, it may be the case that certain lenders take this into account and that the mortgage becomes less. The amount will then be deducted from your income as a liability. Not only is it important to pass on the amount of alimony, you will also have to submit a number of additional documents. Below we will go through these documents with you.
The Divorce Agreement
You will have to submit the complete divorce agreement when applying for your mortgage. This document is a contract that contains all the agreements between you and your ex-partner regarding the divorce. Submitting a copy of the covenant is important, since the document contains all kinds of topics that concern your possible mortgage, such as assets, debts, possessions and children. The divorce agreement also contains the amounts related to spousal maintenance and child maintenance.
Have you not yet received help with drafting your divorce agreement? At Q Scheidingsadviseurs we are happy to help you with advice and support regarding the divorce and at Bliss Mortgage Advisers the mortgage. The lender is not only satisfied with this document.
The verdict of your divorce
Once the divorce has been pronounced, the judge will also rule on the agreements you both have made in the divorce agreement. The name of this court decision is the verdict. In this judgment, the judge formally goes through all agreements made with references to the divorce agreement. For this reason, the lender would like to see more clarity in this way about the agreements that have been made about the divorce.
Registration of your divorce
When you apply for a mortgage, you also need proof to show that your divorce has been registered. As soon as you separate, the divorce will be registered at the registry office of the municipality. Only then is the divorce officially settled. Such proof of registration with the registry office is a document that you need when applying for the mortgage loan.
Deed of division: does your ex-partner or you still live in your old owner-occupied home
If you or your ex-partner still live in the old home, you will need a so-called division deed. This is a document that you can request from your notary. A notary has been trained to draw up this official, notarial deed and will register it with the Land Registry. This document is confirmation that after the divorce one of the two ex-partner will continue to live in the house and has become the full owner of the house. It is important to have this formal confirmation drawn up after your divorce. If you do not do this, the ex-partner who no longer lives there will also remain the owner of the house.
Keep your divorce documents safe
Although you may have split up years ago, it is not possible to apply for a new mortgage without the above documents. A number of documents are important to keep in mind. Good to keep the judgment of the judge and the divorce agreement and not to forget. Also note the registration of the divorce and the deed of division. Only after submitting these documents can you have your dream home financed!