If you read this article it means that you are looking for options to obtain remortgage once you and your partners are no longer engaged in the marital act. Unfortunately the rate of divorces has increased in the recent years due to all sorts of factors, many times these factors being also of financial nature. If you and your spouse have been involved in a mortgage prior to the divorce you will definitely have more issues related to paying off the mortgage loan.
The solution that is more commonly resorted to by divorced couples comes in the form of remortgage plan. This is a solution that more often than not proves satisfactory for the spouses involved in a divorce process. There could be that your ex-spouse will gladly give up his/her right to live on the premises once the diverse is pronounced. On the other hand you will want to keep the property to yourself which in this case a remortgage solution comes as the most viable plan for you.
It is important at this point to find the best way out so that each of you is satisfied with the arrangement. There is however one aspect that you should consider closely prior to resorting to this option: you need to make sure that you can afford repaying the new loan that for this time will be on your name. This means that you will be held responsible for repayments involved in the process.
The things that you should do to buy out your ex-spouse are as follows:
There is the option of releasing the equity on the home prior to resorting to remortgage plan. This can be very effective and lucrative especially if the economy is back on its track and the house prices are at their best. Again there are various methods to resort to for releasing equity. Check them down below:
You can put your property for sale and have it rented back afterwards. Ensure that you do this with an allowance of buying it later. This is a viable solution in case you need to stay for a while clear of financial burdens such as repaying loans. It is also a good start if you are looking to repair a poor credit record.
Another method would be to sell your property and move somewhere else. You can get around 95% of its value in this way and with this money you can get yourself another place to live for the future.
Another thing that you can do is to apply for a secured loan and stick to the current mortgage instead. You can get smaller fees since this option comes as a good solution for you in case you have a big redemption.
Think of having the property bought out with a remortgage plan that is assessed at a higher LTV (Loan To Value) level. It is important to check with the monthly repayments as they are not set higher than the ones that you are currently paying.