In what many financial commentators have described as a surprise move, yesterday the Bank of England left interest rates unchanged at 5.25%. This is at odds with the past 14 reviews in a row where interest rates have increased each time.
Although yesterday’s decision is likely to have been welcome news for many separating spouses, the current level of interest rates, coupled with a cooling housing market, continue to cause significant difficulties for many people separating.
The difficulties faced are wide ranging and it would be impossible to cover each scenario as no two families’ circumstances are the same. However, common trends we encounter on a weekly basis are as follows:
- Fixed rate term mortgages coming to an end, resulting in significantly more expensive monthly mortgage payments;
- A reduced mortgage raising capacity and therefore a smaller pool of potential new properties to choose from;
- Uncertainty regarding future affordability given what has been a volatile market;
- Unaffordability resulting in separated couples continuing to live in the matrimonial home for longer periods of time, and,
- A reduction in demand from buyers.
With so many uncertainties it is unsurprising that couples are finding the current climate an extremely difficult one.
All of our solicitors at Lux Family Law are highly experienced in advising clients upon separation. As part of our bespoke offering, we also work closely with independent financial advisors to ensure our clients are well informed and supported, which subsequently gives them confidence to make the decisions that are right for them and their family.
If you are separating and require advice with regards to the financial arrangements arising from the breakdown of your marriage, please contact us on 029 2019 7203 to arrange an initial consultation with one of our experienced solicitors.