Buying out an ex-partner means paying them for their share of the equity so you can keep the home in your sole name, and it usually needs two things to happen together: a transfer of equity, changing the legal ownership, and a remortgage, which raises the money and replaces the joint mortgage. With bad credit on your file, the extra borrowing this often involves, alongside a higher loan to value, can matter as much as the credit history itself.
This page works through how the sums usually add up, what raises or lowers the amount you need to borrow, and the practical steps. For how your ex-partner’s own credit history might affect you, see an ex-partner’s bad credit. Our main page on remortgaging after divorce with bad credit covers the wider options for the home.
On this page
This page covers
- Reason for remortgaging
- Changing the mortgageChanges to the term, repayment type or borrowers usually need a fresh application.
Read the main guide: Remortgaging after a divorce or separation with bad credit
In short
- A buy-out usually combines a transfer of equity with a remortgage that pays your ex their share.
- The new mortgage is normally assessed on your income alone, stress tested at today’s rates.
- Buying someone out usually raises your loan to value, which can narrow options alongside bad credit.
- Legal fees, a valuation and possibly an early repayment charge add to the amount you need to raise.
How is the amount you need to raise worked out?
The starting point is usually the home’s current value, minus what is still owed on the joint mortgage, which gives the equity. Your ex-partner’s share of that equity, however it has been agreed or ordered, is the amount you need to find, on top of taking on the whole mortgage balance yourself.
| Step | Amount |
|---|---|
| Home value | £280,000 |
| Joint mortgage still owed | £150,000 (54% LTV) |
| Equity (value minus mortgage) | £130,000 |
| Ex-partner’s half of the equity | £65,000 |
| New sole mortgage needed, before fees | £215,000 |
| New loan to value | 77% |
For illustration only, not a lender limit or a guide to how equity should be divided. Splits are often unequal.
The split does not have to be equal, and a court order or agreement may set a different share, for example reflecting who paid the deposit. Our guide on how much you can remortgage for explains how lenders generally cap borrowing.
Why does the loan to value matter so much here?
Buying someone out almost always pushes the LTV up, because you are borrowing to pay them their share rather than simply keeping the existing mortgage. A higher LTV combined with adverse credit can narrow your options more than either factor would alone, since some lenders who consider bad credit set lower maximum LTVs than they would for a clean file.
A few things can help bring the LTV down: a lump sum from savings towards the amount owed to your ex, agreeing a smaller share where that reflects the facts fairly, or a slightly longer term to reduce the monthly stress-tested figure, though a longer term usually means paying more in total. Our guide on how LTV affects a bad credit remortgage explains why the band you fall into matters.
What else adds to the amount you need?
Beyond your ex-partner’s share, a few other costs are worth building in from the start.
- Legal fees, for the solicitor handling the transfer of equity and the remortgage.
- A valuation fee, which most lenders require.
- Any early repayment charge on the joint deal, if it has not yet ended.
- Product or arrangement fees on the new mortgage, which can sometimes be added to the loan.
Our guide on what documents you need to remortgage lists the paperwork a lender or solicitor is likely to ask for.
Can you pass affordability on your own income?
A buy-out is assessed as a new mortgage on your income alone, not the joint income you may have applied on originally, and the lender will stress test the higher loan against a higher rate. This is often the part people underestimate, since what you owe rises at the same time as the household income falls to one person.
Maintenance you pay counts as an outgoing. Some lenders may count maintenance you receive as income, often with evidence such as a court order. Our guide on how lenders assess affordability explains the checks, and our page on remortgaging on benefits covers how certain benefit income may be treated.
It is worth comparing selling and dividing the proceeds against buying out your ex, particularly if a mortgage large enough is not realistic on your income alone. There is no obligation to keep the home. Free advice from MoneyHelper can help you weigh up the options, alongside legal advice about your rights.
What are the practical steps, and in what order?
- Agree or obtain a court order setting out your ex-partner’s share and how it will be paid.
- Get an up to date valuation and check your likely loan to value.
- Speak to an adviser about affordability on your income alone before you commit.
- Instruct a solicitor to handle the transfer of equity alongside the new mortgage.
- Confirm any early repayment charge on the joint deal, and its timing.
- Keep the joint mortgage paid until the buy-out has fully completed.
What may affect a buy-out remortgage with bad credit
| Factor | Why it matters |
|---|---|
| Amount owed to your ex-partner | Their agreed or ordered share of the equity, which sets how much extra you need to borrow. |
| Resulting loan to value | Buying someone out usually raises the LTV, and some lenders set lower limits for adverse credit at higher LTVs. |
| Your income alone | Assessed on its own, with a stress test against a higher rate than you currently pay. |
| Type and age of credit issues | The specific problem on your file, for example a CCJ, default or arrears, and how long ago it was. |
| Maintenance paid or received | Maintenance you pay counts as an outgoing. Some lenders may count maintenance received as income. |
| Legal and valuation costs | Add to the amount needed on top of your ex-partner’s share. |
| Timing against the current deal | Whether an early repayment charge applies if the buy-out happens before your joint deal ends. |
These are general points, not lender rules. Each lender sets and changes its own criteria.
Information an adviser may ask for
You don’t need all of this to make an enquiry. It helps to know where to find it, because an adviser is likely to ask about most of it.
- A copy of any court order, consent order or written agreement setting out the split
- An up to date estimate of the property’s value
- Your current mortgage balance, lender and deal end date
- Proof of your income, and evidence of any maintenance you pay or receive
- Your credit reports from all three agencies
- Details of any savings you plan to put towards your ex-partner’s share
Frequently asked questions
Can I buy out my ex-partner if I have a CCJ or default?
It can be possible. Lenders look at the date, amount and status of the entry alongside your income and the resulting loan to value. Because a buy-out often pushes the LTV up, the combination of higher borrowing and adverse credit may narrow the field more than either alone. See remortgaging with a CCJ or remortgaging with defaults for the specific issue on your file.
What if I cannot borrow enough to buy my ex-partner out?
Options include agreeing a smaller lump sum now with the balance paid later if that can be legally documented, putting savings towards the amount, or accepting that selling and dividing the proceeds may be more realistic. A solicitor and adviser can talk through what is achievable.
Does the buy-out amount have to be half the equity?
No. It reflects whatever you and your ex-partner agree, or what a court orders, and can take into account factors such as who paid the deposit or has made mortgage payments since separating. Get legal advice on what is fair in your circumstances.
Will my ex-partner’s credit file affect the new mortgage?
Once the buy-out completes, the new mortgage is in your sole name, so it is assessed on your file and income alone. While the joint mortgage still exists, a financial association with your ex-partner can remain. See an ex-partner’s bad credit for more on this.