I’ve recently left my husband and we are starting to sort out our finances. We plan to sell the family home and each buy something smaller. I’m trying to work out what my costs are going to be, as I’m going to have to borrow at least £100,000 to buy something suitable. Can you help me get a general idea of what I’ll need without getting specific mortgage offers?

North Norfolk News: Diane Fish, independent financial adviser with Smith & PinchingDiane Fish, independent financial adviser with Smith & Pinching (Image: Smith & Pinching)

Diane Fish of Smith & Pinching responds:

Working out your financial settlement when you separate from a partner is never easy. There are lots of factors to consider. Do make sure you discuss your finances with your solicitor and, if they are complex (perhaps involving pension schemes, for example), suggest to your solicitor that you involve a suitably qualified independent financial adviser in the discussions.

When it comes to considering a possible future mortgage, it is worth speaking with a professional mortgage adviser who specialises in post-divorce mortgages. When I advise clients in this situation, I can provide “brief indicative material” in the form of a short letter in the negotiation stage of the divorce process to help give an idea of the figures involved. I can also carry out an analysis of your future financial circumstances – income, expenditure, family needs, etc. – and come up with a more detailed mortgage affordability report, if that is going to be useful.

It's important to bear in mind that we are in a period of rising interest rates and relatively high property prices. In addition, there are difficult decisions to be made about how long to fix your introductory rate. Rates may go up or down: fixing now may give you certainty in respect of your monthly liabilities and protect you if rates go up. However, if rates go down a fixed rate will be expensive compared to standard variable rate (SVR) and will look like poor value. I recommend you talk to an independent mortgage adviser to help you make that decision.

Some advice firms, such as Smith & Pinching, have specially qualified Pensions on Divorce Experts (PODEs) who can assist in the negotiation process. Their contribution can include evaluating existing pensions, calculating future retirement benefits to be accrued and organising new pension arrangements where Pension Sharing Orders have been agreed.

Your home may be repossessed if you do not keep up payments on your mortgage. We do not offer deals that you can only obtain by going direct to a lender. There will be a fee for the mortgage advice. The precise amount will depend upon your circumstances, and the type of lending taken. Smith & Pinching’s minimum advice fee is £950. Any opinions expressed in this article do not constitute advice.

For more information, please visit www.smith-pinching.co.uk