How I Afforded My Mortgage After My Divorce

Paying The Mortgage and Child Maintenance After Seperation.
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Chapters:
00:00 Introduction
00:27 Scenario - Couple Split
02:54 How CMS Treat Mortgage Payments
05:05 Screwing Each Other Over May Backfire!!
06:08 Interest Only Option
07:28 Consider Carefully Adding a Mortgage Restriction

Video Summary

The video discusses mortgages and the Child Maintenance Service. It emphasizes the importance of coming to an agreement about the mortgage payment and child maintenance to avoid financial and credit issues. The Child Maintenance Service (CMS) doesn't consider mortgage payments as an allowable expense if the paying parent's name is still on the mortgage. It suggests going interest-only as a temporary solution and advises both parties to work together to find a resolution. Selling the house might be necessary if an agreement cannot be reached. Some lenders accept child maintenance payments as proof of income, but the affordability may still be affected for the non-resident parent. The key takeaway is to work together and plan for the financial future to ensure stability for the children and preserve credit records.

Transcript

Hello how are you? So today's video is all about mortgages, mortgages and the Child Maintenance Service, and some of the things we need to be aware of. Okay we will look at a scenario, okay an, we'll look at the way CMS looks at mortgages, and also the reality of the situation.

Let's begin then, so the typical scenario, you have a couple together with children and they have a mortgage and then often what happens is the decision is made to split so all normally, the majority of cases, there's no statistics for this but let's be honest I think we all know, the majority of cases the child often stays with the mother and often the father moves out. There are good intentions between the families okay, between the relevant parties and then over time that relationship breaks down.

Suddenly the kids want to see less of the father for whatever reason I'll leave that up to your imagination, father has to in fact, let's not say father let's just say power with care or non-resident parent. So the non-resident parent moves out and they have to obviously fund the cost of living somewhere some cases.

Partners do agree that they split the cost so you you you end up with a scenario where whoever stays in the house and whoever whoever moves out the cost of that is shared which is probably one one way of doing it it just obviously depends upon the couples.

I've heard of examples where people get divorced and one person lives with the children in their family house, and then when they swap over it's not the children that move it's actually the parents, which is probably a good idea so the parents taking turns living at the separate address but the children live in the family home and so one yeah and that's just how it work works.

Okay then of course what happens at some point the CMS become involved, could be in the early stages, maybe on day one the person moves out, it could be three six months later, who knows but obviously for whatever reason one party against the CMS and the liability is is worked out and therefore that person is required to pay CMS on top of whatever rental, rent they're packed that so whatever rent they are paying to live where they live and more than likely they are sharing the cost of the mortgage, how do we deal with this.

Okay this is how the CMS will deal with it if you go to the CMS and ask for a reduction in child maintenance due to paying a mortgage they will say yep fill in a special expense variation and you'll fill it in and you'll send it off, and 99% of cases not statistically backed up but but the reality is the majority of cases it will get refused.

The reason it will get refused is because when you've made the application because the per because the person making the applications of a variation is still on the mortgage the CMS don't accept it, what I am saying to you is, if you are on a mortgage if you are paying it and if you sell the property today and you got the benefit of any profits or losses as the case may be CMS wouldn't accept it.

Okay the only time they will accept a discount for paying off the mortgage is where the paying parent is not on the mortgage whatsoever and does not benefit from the sale.

This video was filmed using an IPhone 11 Pro, in my kitchen, without any script, so apologies for two much um and okay!

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