All of the lender’s residential mortgages will be available to divorcees with 100% of the income from child maintenance taken into account when assessing affordability, provided it is supported by the Child Support Agency or Court Order and has at least five years to run. This allows newly single parents, working full or part time, to have access to the mortgage market.
All applications will undergo a manual underwriting process meaning each case will be considered on its specific circumstances. Furthermore, when assessing affordability, the Society’s underwriting team will accept the applicant’s evidence over the Office for National Statistics data for certain items when lower than the suggested average.
Paul Winter, Chief Executive of Ipswich Building Society, said: “Despite a significant number of people across the country having been through a divorce, there is little consistency in terms of lending criteria for divorcees. Some banks and buildings societies will accept just 50% of income from child maintenance, whilst others refuse to accept this as a form of income at all, limiting single parents’ access to the mortgage market. Furthermore, with the divorce rate highest amongst those in their forties and increasing amongst the older generation, this can add to the difficulties older borrowers already face when looking for a mortgage.”