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One of our clients who was recently divorced came to us to see if we could find a solution to help her stay in her own home.  Here’s her story:

Can you please explain your circumstances that brought you to Louise?

I went through a divorce and as a result at settlement, I was able to retain the matrimonial home. However, working part-time with 2 toddlers I was unable to keep up with the mortgage repayments. I wanted to be able to downsize, have a smaller more manageable mortgage and still own a house. This seemed very unlikely as my borrowing power would be poor as a single mum working part-time with 2 dependents. I had 2 loans secured by my house, a land loan and a building loan. Louise suggested as I wouldn’t be able to borrow, I retain one loan and pay out one loan subsequently using cash to buy. It meant I was not technically borrowing any money and also made purchasing in this market easier as I was able to offer an unconditional contract. Ultimately though, my parents are clients of Louise and they put me onto her.

What options did you think you had prior to speaking to Louise?

I thought the only option I had was my parents borrowing against their own house and me paying them a ‘mortgage’.
What were your biggest concerns during this process?
That I would not be able to own a house. But once I spoke to Louise, I had no concerns. I knew what I had to do and was realistic with what I could spend on purchasing.

NB * not our “real” family

 
Can you please explain what course of action you took? And how it worked?
As above. We paid out one loan and retained one facilitating the mortgage with a security swap.
Did you know about substituting a security on your mortgage prior to speaking with Louise? 
I did as I used to be a conveyancer for many years but in my panicked flustered state and operating in survival mode, I didn’t think of it as an option.
I believe you had two loans in your name.  Was that always the case (as in your name) or did you change that?  My understanding is that you had a Fixed rate and a variable rate loan and it would have been expensive to get out of the Fixed so that was the one you kept?
That’s correct. I kept the loan that was fixed. Yes, both have always been in my name as my ex-husband had no borrowing power due to impaired credit history.

So you downsized and now have a smaller property with a mortgage you can manage?  And you work more hours now?
I reduced my mortgage to about half. I work 25 hours a week from home around my kids. My mortgage is about ¼ of my monthly pay. It’s completely manageable now. I didn’t increase my hours.
Overall, are you happy with the outcome and relieved such a course of action was available to you? 
I honestly could not be happier than I am now. I referred a friend who is also going through a divorce and because of Louise, she is also able to buy which she thought being a single mum would never have been an option. I am forever grateful for what Louise has done for me and my kids. My ex thought he had financially crippled me and I would have to live with my parents or rent. But I have been able to secure a constant home for myself and the kids without having to return to full-time work.
How would rate the service and advice that Louise was able to give you?

Hmmm, 10000 out of 10!
Anything else you would care to share?
I just wish that single mums could all be as lucky as I have been and be able to get access to the information that can save them a lifetime of renting and moving. I hope that my story helps at least one person in a similar position. I thought this man had destroyed my life, he had gambled everything away without my knowledge except the house because it was in my name. I put up with family violence for a few years. I thought I would have nothing. But now I have a beautiful little home that’s all mine, a good flexible job and my babies are safe with me. I am living my best life and couldn’t be happier or feel luckier than I do now.

If you would or anyone you know is going through a difficult time post-divorce, please make an appointment at www.calendly.com/louise to I can see if I can assist.

 
With thanks,