Financial planning when going through a divorce

Divorce is stressful. We can at least help in taking part of that stress away for you.

Sometimes our services are needed most when our clients are going through a stressful change in their lives. Recently Paula has been advising several clients who are going through the divorce process, working with them and their solicitor. Here she offers some key financial issues to think about when you are going through a divorce or separation. She also covers what information you may need to provide for us and your solicitor to advise you appropriately.

Mortgage planning for divorce

If your separation means you need to sell your home – what your solicitor will refer to as the matrimonial home – you will need to consider whether you need a mortgage in order to buy a new property. You will also need to have an idea how much you may need.

In order to help you with this, you will need an idea of what the matrimonial home is worth, the amount of any existing mortgage and an indication of how any equity may be split between you and your ex-partner. Proof of earnings will be needed to help you obtain a new mortgage. You will also need an idea of the value of any property you are looking to buy. We are happy to talk to you about getting a mortgage in principle so you can have that conversation with your solicitor.

Pensions considerations

The value of your pension and your ex partner’s pension will be taken into account with any financial settlement. You will need to supply your solicitor with the Cash Transfer Value of any occupational and private pension schemes. We can obtain that information for you if you wish, to help you to fill in form E.

If you are allocated a pension sharing order as part of the settlement, you will need some idea of where you are going to invest that money. If you have a private pension plan it may make sense to invest it here. We can look at the amounts involved, and consider how close you are to retirement age before we advise you.

You may need to access some capital in the short term for example when you are waiting for your matrimonial home to sell. If you are over 55, you may be able to release a tax free cash sum from your pension pot to help you.

 

We do understand that considering your financial affairs while going through a divorce is stressful. Our aim is to help you consider all the possibilities to help you make the right decisions. We want to ensure the financial aspects of the divorce go as smoothly as possible for you.

If you would like to book an appointment with Paula to discuss any of these issues, please call us on 01543 410512. We do not ask for a fee for an initial meeting, where we can meet to check whether we can offer what you need. Any business that we conduct on your behalf will be subject to a fee. We will always advise you of up front before we start any work for you.

We are now members of the Equity Release Council!

Equity Release is a subject that has become prominent in the news recently, as more and more people are looking to raise funds through their property. Equity Release is one way of doing this, and we are now proud to say that we are members of the Equity Release council!

To become a member of the Equity Release Council, we must adhere to their high standards and principles. Therefore, we will always:

  • Ensure that all our actions promote public confidence in equity release as a potential retirement solution
  • Act at all times in utmost good faith
  • Communicate high expectations for equity release outcomes in all our dealings
  • Ensure conflicts of interest are managed fairly and reduced to the lowest practical level
  • Exercise due skill, care and diligence in all that we do and uphold the standards set out by our professional bodies at all times
  • Always act with the best interests of our clients being paramount, treating our customers fairly in all our actions.

If you would like to know more about Equity Release, and how this could be of use to you, please contact us on 01543 410512, or email enquiries@acuityfinancial.co.uk.

You can also visit the Equity Release Council website at https://www.equityreleasecouncil.com, where you can find more information about the council and what it does.

Mortgage product ending soon? Thinking maybe of just changing product?

Let us check whether this is best for you, and if it is we can normally arrange it for you, without charging you anything.

That’s right. There has been a seed change in the mortgage market, with lenders trying to keep their borrowers more actively, rather than borrowers having to change lender every time their mortgage product ends.

Some are better than others. Some lenders will offer all their mortgage products to existing borrowers, some will have a limited range with the best rates only being given to new borrowers, though they are now becoming the minority.

A further change is that many lenders have changed their systems so that we can access your mortgage account (with permission of course!), and if it is in your best interests we can arrange a product transfer for you.

We will always check whether you would be best served by changing lender, as we can look at thousands of mortgages, but if the current lender does offer good rates this is much easier to arrange than a remortgage.

It should be quick, normally doesn’t need underwriting again, and there is no need to use a solicitor to change lender.

And, again a recent change, most lenders will pay us a fee for arranging this. If so, and the case is straightforward as it should be, then we won’t need to charge you anything directly for arranging this for you.

So, if your product is ending in the next 4 months why not give us a call. We can advise you, arrange everything for you, you will get advice on your options which most lenders won’t offer, and it won’t cost you anything.

What do you have to lose?

Secure a very low fixed rate mortgage now whilst you can!

According to Bank of England Governor Mark Carney, a rise in interest rates could be happening in the “relatively near term”.

The Bank of England will next review the current interest rate on the 2nd November, so there is no time to lose. Contact us now to secure a fixed rate mortgage whilst rates are around ‘record low’ levels, because it won’t forever!

Email: enquiries@acuityfinancial.co.uk     Tel: 01543 440 300

 

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