If you’ve been stuck in a relationship because you couldn’t afford to move out or remortgage, that may finally be changing.
With the Bank of England lowering its base rate, the ripple effect is already being felt by separating couples across the UK. At our family law firm, we’re seeing a clear shift: as mortgage rates begin to fall, people who were previously financially unable to finalise their divorce settlements or move on independently are now coming forward.
How does the base rate affect divorce and financial settlements?
In divorce settlements, your borrowing capacity — how much you can get from a mortgage — can directly influence how assets like the family home are divided. If one party can’t afford to buy out the other or get a mortgage on a new home, divorce settlements often stall.
Now that the base rate has dropped, mortgage lenders are expected to reduce their interest rates. This makes it easier for one or both parties to:
- Remortgage the home
- Buy a new home
- Borrow more affordably to meet housing needs
This is especially important where children are involved, as family courts prioritise secure housing post-divorce.
Can I get divorced if I can’t afford to move out?
Until now, many people couldn’t.
We’ve spoken to clients who have had no choice but to continue living under the same roof as their ex — not because they wanted to, but because the cost of moving out or remortgaging was too high.
Some of those clients are now revisiting the divorce process because the numbers have finally shifted in their favour. With lower rates, borrowing is more accessible — and that changes things.
Why are divorce enquiries increasing right now?
The cost-of-living crisis has put pressure on many relationships, but financial uncertainty has kept people from acting. We now expect to see:
- A rise in new divorce applications
- Stalled financial cases progressing
- More achievable settlements due to improved borrowing options
Clients are seizing this window of opportunity to finalise things that have been emotionally resolved for a long time, but financially impossible — until now.
How will this impact my divorce settlement?
Lower interest rates may:
- Improve your borrowing power
- Help you meet housing needs (which courts require)
- Make it easier to divide the matrimonial pot
- Allow you to buy out your ex’s share or move out on your own
All of this can help you reach a fair and final agreement faster — and with less emotional strain.
What should I do if I’ve been waiting to finalise my divorce?
✅ Now is the time to revisit your options.
Whether you paused proceedings due to mortgage concerns or haven’t yet started because you didn’t think it was financially possible, we can help you assess where you stand under the new conditions.
Our expert family law solicitors work with clients across England and Wales, guiding them through:
- Divorce and separation
- Financial settlements
- Child arrangements
Top tip from our family lawyers
“The drop in the base rate could finally give people the freedom to move forward. If you’ve been delaying your divorce because you couldn’t afford it — that may no longer be the case.” Judit Kerese is an Associate at Stowe Family Law.
Useful links
Mortgages before and after divorce with Meet Margo
What happens to a joint mortgage after a divorce
What happens to the family home when I get divorced?
A guide to Home Rights Notices
Who gets the house in a divorce?
