Written by Sarah Macsot, Mortgage Adviser, The Mortgage Broker
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If you’ve separated and there’s a joint mortgage, it can feel like you’re stuck in a financial relationship you didn’t sign up for. You’re not alone, and the good news is there are usually several workable routes forward.
What matters most, especially in the first few weeks, is avoiding the two things that cause the biggest long term damage: missed payments and rushed decisions. This blog lays out the seven main mortgage options people use after separation, what each one really involves, and how to decide what fits your situation.
Key takeaways/TL;DR
- If you’re both on the mortgage, the lender generally still sees you both as responsible until it’s redeemed or someone is removed.
- The best route depends on three things: affordability, equity, and timescale (especially if you’re in a fixed rate with charges).
- If money is tight, talk to the lender early, there may be short term support options while you work out the longer term plan.
First: do this before you choose an option
Step 1: Get your 3 numbers
- Property value (estimate)
- Mortgage balance
- Monthly payment + rate type (fixed / tracker / SVR)
Step 2: Answer these 4 yes/no questions
- Can either of you afford the mortgage alone (including bills)?
- Is there equity (value minus mortgage), or are you in/near negative equity?
- Do you need to keep the home for children/school stability short term?
- Are you locked into a deal with early repayment charges (ERCs)?
Step 3: Agree a ‘no missed payments rule’
Even if everything else is up in the air: protect the roof and both credit files. With joint mortgages, lenders usually view both borrowers as fully responsible for payment.
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The 7 mortgage options when you separate
1) Sell the property and redeem the mortgage
This is the clean break option. You sell the home, repay the mortgage from the sale proceeds, and then split whatever equity is left according to your agreement (or legal position).
Selling can feel brutal when you’re already dealing with a breakup, but it’s often the most straightforward way to financially detach from one another. It can also be the least risky route if neither of you can realistically afford the mortgage alone, or if conflict makes a long in between period unsafe.
The main snag is timing. If you’re in a fixed deal, there may be early repayment charges. That doesn’t mean selling is wrong, it just means you need to know the cost before you commit.
2) One person buys the other out (Transfer of Equity)
If one of you wants to stay, a buyout can work well. The key idea is simple: one person takes over the property share, and the other comes off the ownership and (usually) the mortgage.
But in practice it’s two problems, not one. First you need to agree the numbers, what the other person’s share is worth. Then you need the lender to accept that the remaining borrower can afford the mortgage on their own. The lender’s decision is affordability led, not emotion led.
A buyout can be a great outcome when it’s achievable. If it isn’t achievable today, that doesn’t always mean never, it may mean you need a short term plan while affordability improves.
3) Remortgage into one name to fund the buyout
Sometimes the buyout is agreed, but the person staying needs cash to pay the other out. That’s where a remortgage can come in: you replace the current mortgage with a new one in a single name, often borrowing more to release funds for the settlement.
This can be the cleanest version of one stays, one leaves because it can remove the joint mortgage entirely. However, it’s also the most underwriting heavy option. It’s a full mortgage application: income, credit history, commitments, and affordability stress tests.
One extra reality check: increasing the mortgage may push you into a higher loan to value bracket, which can mean a higher rate and higher monthly costs. It’s worth modelling the payment you can truly live with, not just the mortgage you can get approved.
4) Keep it jointly for now (a short term hold plan)
Sometimes the right move is not a big move, it’s a controlled pause.
A hold plan is useful when selling would be expensive (for example, if you’re part way through a fixed rate period), when you need time to make decisions around children and schooling, or when one person needs a few months to stabilise income before attempting a buyout.
The make or break factor is clarity. A good hold plan spells out who pays what, who lives there, what happens with maintenance costs, and crucially when you’ll review it and what the end condition is (sell, buyout, remortgage, etc.). Without dates and rules, temporary turns into stuck.
5) Switch to tenants in common / change the ownership shares
This is less about the monthly payment and more about fairness and clarity.
If one person contributed more to the deposit or paid more of the mortgage, or if you’re staying joint owners for a while, changing ownership structure can define who owns what share of the equity. Many couples move from joint tenants to tenants in common and record the split, often alongside a deed of trust.
It can be particularly helpful when you’re keeping the property for a period but want the financial split documented so it doesn’t become a future argument.
The important point: changing ownership shares doesn’t automatically change the lender relationship. You still need to keep the mortgage paid, and lenders still assess risk based on the mortgage contract.
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6) Let the property out (with lender consent) and split proceeds
If neither of you wants to live in the home but selling now is a bad option, renting it out can be a practical bridge.
This usually starts with speaking to the lender about consent to let, or exploring a formal switch to buy to let. The goal is simple: rental income covers the mortgage and costs, and you agree how to split any surplus (and how you handle shortfalls, repairs, and void periods).
This can work well when you’re waiting out a fixed term, navigating negative equity, or buying time to decide the long term plan. Just go into it with eyes open: being a landlord is a responsibility, and “we’ll split it” needs to include repairs, compliance, and what happens if the property is empty for a month or two.
7) Last resort routes if it’s unaffordable (support, negotiation, specialist advice)
If affordability is the immediate problem, your priority is stabilisation. That means contacting the lender early and asking what support is available. In many cases there are short term measures designed to reduce pressure while you reset your finances or plan a sale.
If the strain is broader than the mortgage, multiple debts, arrears building, income shock, you may also need independent debt advice so you can make decisions that protect your long term position.
This route isn’t about giving up. It’s about preventing the situation from spiralling into arrears, added fees, credit damage, and fewer choices.
A quick way to choose the right route (without overthinking)
If you want a simple decision rule, use this:
If neither of you can afford it alone → lean towards selling or lender support while you plan the sale.
If one of you can afford it alone → explore a buyout/transfer of equity (with affordability checked early).
If the numbers could work later but not now → a dated hold plan can be the bridge.
If selling now is financially bad timing → consider renting (with consent) as a temporary strategy.
It’s not about the perfect plan. It’s about the plan that reduces risk first.
Checklist: what to gather before you speak to a broker/solicitor/lender
- Latest mortgage statement (balance, rate, deal end date, any early repayment charges)
- Rough property value estimate
- Monthly household budget (what one income can realistically cover)
- Notes on deposit contributions and mortgage payments to date
- Your preferred timeline (weeks/months) and any child/school constraints
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FAQs: Mortgage Options When You Break Up
Usually yes if their name is still on the mortgage. Lenders typically focus on who’s named on the agreement, not who lives in the property.
In most cases, no. Removing a name normally needs the other person’s consent and the lender’s approval (because the lender is changing who they can pursue for repayments).
They’re linked, but not identical. The mortgage is the loan agreement; the deeds/title show legal ownership. You generally can’t keep ownership without the lender being satisfied about who is responsible for the loan.
Almost always, yes. It’s a legal change to ownership and often includes checks, paperwork, and lender requirements.
A common starting point is: current property value − mortgage balance = equity, then split according to your agreement. But it can change depending on deposits, contributions, and any legal agreement (especially if you’re tenants in common or have a deed of trust).
It’s harder. If the mortgage is bigger than the property value, there may be no equity to buy, but you still need lender approval to change names and you’ll need a plan for any shortfall if you’re restructuring or selling.
Sometimes. Stamp duty can apply if you take on a share of the mortgage (even if no cash changes hands). It depends on the chargeable consideration rules and your circumstances — this is one to confirm with a solicitor.
Maybe, but check early repayment charges first. Sometimes it’s cheaper to wait; other times the cost of delaying (or the risk of payment issues) outweighs the charge.
Often yes, but it requires legal work and sometimes lender involvement. This is typically done to document unequal contributions while keeping the mortgage arrangement in place short term.
Possibly, but you usually need lender consent (or a switch to a suitable product). Also plan for landlord duties, void periods, repairs, insurance, and how you’ll split costs and any surplus.
The lender will still expect the full payment. If the mortgage is in both names, missed payments can affect both credit files and escalate to arrears action even if one person has been paying their part.
Speak to a broker when you need to test affordability for a buyout/remortgage or compare lending options. Speak to a solicitor when you’re changing ownership, documenting shares, or formalising an agreement (especially if the split isn’t straightforward).
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Author: Sarah Mascot, Mortgage Adviser
View all posts by Sarah Mascot 
