Case Study: Helping Sarah Keep the Family Home

After a divorce, the transition from a dual-income household to a single-income household can be overwhelming; especially when children are involved. This case study explores how strategic financial planning helped Sarah secure stability for her family.

Sarah, a 35-year-old part-time administrator, was going through a divorce. Her primary goal was to provide stability for her two young children (ages 4 and 7) by remaining in the family home. However, she faced several significant hurdles:

  • Income Constraints: Her part-time salary alone wasn’t enough to satisfy traditional lending criteria.

  • Credit History: She had a limited individual credit profile.

  • The Buy-Out: She needed to find a way to pay out her ex-partner’s share of the equity to transfer the deed into her name.

The Professional Strategy

Sarah worked with Liddle Perrett to look beyond the surface-level numbers. We implemented a four-step plan to make the “impossible” mortgage possible:

  1. Holistic Income Review: Instead of just looking at her payslips, we included child maintenance payments and government benefits to prove her true “repayment power.”

  2. Targeted Lending: We identified niche lenders who are specifically flexible with non-standard income sources.

  3. The Guarantor Solution: To bridge the gap in her credit and income, we arranged a guarantor mortgage with Sarah’s parent, providing the lender with extra security.

  4. Legal Coordination: We acted as a project manager, liaising directly with Sarah’s solicitor to ensure the refinancing and the legal transfer of equity happened simultaneously.

The Result

By leveraging a guarantor and utilising all available income streams, Sarah successfully remortgaged the property in her own name.

The Outcome: Sarah and her children were able to stay in their home, avoiding the stress of moving and maintaining the consistency of their school and social lives.

Key Takeaways

  1. Maintenance Matters: Child maintenance can often be counted as valid income with the right lender.
  2. Support Systems: A guarantor (like a parent) can be the “missing piece” for someone with a lower income.
  3. Expert Guidance: Navigating a divorce buyout requires close collaboration between a broker and a solicitor.