The Client
Our client was remortgaging the marital home as part of divorce proceedings. During the divorce he was renting privately, with the plan that once the remortgage completed, the property would become his main residence and his ex-wife would move out. The court had set a timeline requiring the mortgage offer to be in place, and he was self-employed with income over the last 12 months that was failing affordability with most lenders.
The Objective
To secure a mortgage offer quickly enough to meet the court’s timeline, keeping the marital home as his sole residence once the divorce settled, despite self-employed income that wasn’t clearing standard affordability checks.
The Situation
Assessing the application, we found the land attached to the property included some commercial elements, which narrowed the pool of lenders willing to consider it on residential terms. Splitting the title to separate the commercial and residential parts properly would normally have been the tidy solution, but the divorce timeline didn’t allow time to wait for that.
The Challenge
Two problems needed solving at once. The mixed-use title ruled out most residential lenders before affordability even came into it, and the client’s most recent 12 months of self-employed income wasn’t going to pass a standard assessment on its own.
What We Did
We identified a lender willing to assess the application on residential terms despite the commercial element in the title, and prepared to work from projected income figures rather than the historic year that was falling short. The client’s accountant completed an Accountant’s Certificate explaining the projected income increase.
The Solution
The lender accepted the case on residential terms and worked from the projected figures rather than the historic ones. A first mortgage completed, giving the client the breathing room to split the title properly and remortgage onto better terms once the divorce settlement and this first charge had both been finalised.
The Outcome
The remortgage completed within the court’s timeline, and the client kept the marital home. The path was set for him to tidy up the title split and refinance on standard terms once his circumstances had settled.
Conclusion
Divorce proceedings are stressful enough without a mortgage timeline running against a court deadline, self-employed income that won’t pass standard checks, and a property title that doesn’t fit neatly into either residential or commercial. As a whole-of-market broker, we could bring all three problems to a single lender rather than solving each one separately, which is what made the deadline achievable.
Frequently Asked Questions
Can I remortgage during divorce proceedings before the divorce is finalised?
Yes, and it’s often necessary where a court has set a timeline for a mortgage offer to be in place. Lenders can and do assess these cases before a divorce settlement is finalised, provided the case is presented clearly.
Can self-employed income projections be used if my last 12 months doesn't meet affordability?
Some lenders will work from projected income rather than historic figures alone. This typically needs an Accountant’s Certificate explaining why the projected figure is higher than the previous year’s results.
Does a property with a commercial element affect a residential remortgage?
It can narrow the lender pool significantly. Some lenders will still assess the case on residential terms even with a commercial element present, particularly where splitting the title isn’t immediately practical.
Can I split a mixed-use title after completing a mortgage?
Often, yes, once time and circumstances allow. Completing a first mortgage on the combined title can buy the time needed to arrange a proper title split and refinance onto standard terms afterwards.
Final Thoughts
UK Mortgage Broker is a whole-of-market broker helping clients throughout the UK and globally to secure funding on UK property. We are directly authorised and regulated by the Financial Conduct Authority. Your home may be repossessed if you do not keep up repayments on your mortgage.
Call: 01628 969 500
Email: info@uk-mortgagebroker.co.uk
Related Pages
- Residential Mortgages – whole-of-market advice for main home purchases and remortgages across the UK.
- Self-Employed Mortgages – accounts, SA302s and projected income for company directors, sole traders and contractors.
- Can I Get a Mortgage in the UK? – how deposit, income and credit profile determine eligibility.
- How Lenders Actually Check Your Income – how self-employed and variable income get assessed differently by lender.
- Buy to Let Mortgages – whole-of-market advice for landlords and property investors across the UK.