Mortgage Approved After Historic Mortgage Arrears Following Separation
A case study showing how home movers secured a mortgage despite historic mortgage arrears on a previous marital property following relationship breakdown.
- Publication date
- Case ID:
- 46125004
Question:
"Can I get a mortgage if my ex-partner stayed in the property and stopped paying the mortgage?"
Customer situation
Joint applicants
Home movers
Both permanently employed
Two stable salaries
10% deposit from savings
House
Historic mortgage arrears recorded on a previous marital home. The arrears arose after a relationship breakdown, where the applicant had moved out of the property
Why This Wasn't Straightforward
Mortgage arrears are among the most restrictive forms of adverse credit. In this case, the arrears related to a previous marital property following separation, where the applicant was no longer in occupation or control of payments. Despite this context, many lenders automatically decline where mortgage arrears appear on a credit file, regardless of supporting evidence.
The Outcome
Mortgage approved.
A lender using manual underwriting reviewed the wider context, including court documentation confirming the applicant was not in possession of the property and that responsibility for the mortgage sat with the former partner. The lender focused on the applicant's current affordability, stability, and payment conduct since.
Key points
- Loan-to-value
- 90%
- Mortgage term
- 24 years
- Lender type
- Building society offering standard residential pricing following manual assessment
- Mortgage Adviser
- Luke Jacobs
Who This May
Be Relevant For
Applicants seeking a mortgage with historic mortgage arrears
Borrowers whose arrears arose due to relationship breakdown rather than affordability issues
Applicants declined because lenders did not consider supporting legal context
Buyers told mortgage arrears automatically prevent future borrowing
Plain-English Summary
Mortgage arrears don't always tell the full story. Where circumstances can be clearly evidenced and finances are now stable, some lenders are prepared to look beyond the credit file alone.