How much should you borrow to buy a home post-split?
How much should borrow to buy a home post-split? This is a very crucial question. If you have already sold your family home and are now a cash buyer, you can afford to be tough and rigid when negotiating a price. This is because you are in a strong position.
However, it can be unnerving if you are needed to secure a sizable mortgage on your own to own a property. Financial advisers offer a word of caution in this regard. According to Sam Butler of Cirencester based Butler Sherborn, divorcees should not ideally over-stretch themselves.
In fact, one should be prepared ‘to cut one’s cloth and live in something, which might appear like a compromise,’ is the practical piece of advice. Psychologically, it can take divorcees some time to accept and realise that they are not going to have a spacious and luxurious house they used to have while married, owing to changed circumstances.
Experts wouldn’t advise divorcees taking out a huge mortgage that is going to put them under more financial stress.