Divorce and Negative Equity: Where Do I Stand? - Negative Equity UK

Divorce and Property Debt: Where Do I Stand?

  • Divorce and Property Debt: Where Do I Stand?


    The breakdown of a relationship is always difficult, but being trapped in a negative equity mortgage with your ex-partner can make the situation unbearable. Fortunately Negative Equity UK can provide a solution.

    Any relationship breakdown is painful. Being financially tied to your ex-partner by a mortgage in negative equity is obviously very stressful, and lenders’ unwillingness to allow you or your ex to be removed from the mortgage if one of you wanted to keep the property is a cruel “side effect” of the negative equity problem.

    There’s a common misconception that if a property is sold the negative equity amount is then “split” between each of you. Unfortunately this is not the case. A lender treats each borrower the same .i.e., the mortgage is “joint and several”. This means that 100% of the debt is your responsibility regardless of who lives in the property or who makes the payments.

    So what can you do about it?

    The good news is that Negative Equity UK help people like you with this problem daily. Sometimes we represent only one borrower, sometimes both. It is always easier if both of you are in agreement that the property is to be sold and are both willing to participate in negotiations.


    Bolton couple, John and Julie, are divorcing. They have a £150,000 interest only mortgage with 15 years remain on the term. The property is now worth £100,000. They both want to sell and move on. Julie’s divorce solicitor recommends she speak to Negative Equity UK.

    Julie is advised to invite John (through her solicitor) to speak with us also. They both agree to sell.

    We conduct all lender negotiations and appoint an estate agent. An offer of £100,000 is made and the property is sold. John and Julie agree to collectively fund a settlement of £7,000. Once this is paid the remaining £43,000 is written off (debt forgiveness).

    John and Julie are now legally divorced and financially separated. They are able to move on with their lives without the burden of their previous negative equity mortgage.

    As well as being highly skilled FCA regulated debt mediators, Negative Equity UK are also very understanding of our clients’ difficulties - the very reasons you might seek our help. We have been able to help hundreds of separating or divorcing couples resolve this problem and move on with their lives.

    If you think you need our help, get in touch with a member of the team today!

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