New mortgage during divorce

A

AC2020

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Hi all,

Hoping you might be able to give me some advise/insights.
Bit of background - I am currently going through a divorce, there are no children & only asset to address is a property. Property is rented for 10 years, and I manage it fully. There is €270k left on mortgage & it’s valued at ~€290.
While there are no points to really contest in the divorce, it’s taking an eternity to pass through the process, ongoing since 2017. Ex is leveraging Legal Aid, and my solicitor claims this is causing the issue. Given the backlog from COVID, Ive been advised to not expect a new court date for hearing until next year.

I am eager to buy a new house with my partner, and want to do so sooner rather than later, for family reasons & also to secure a crèche/school place for our son...plan to move to an area which places can be a challenge.

So my main question is will a lender look at us with my divorce still in progress, there is no JS is place, we went straight for a divorce. I will be able to evidence that proceedings were well underway prior to approaching them, but have gotten varying advice on whether this matters.

My partner & I earn ~€250k joint gross, with a car loan & my property our only debt. We won’t be looking to borrow at maximum capacity, and will have 20% deposit. Not sure if any of this impacts the situation, so adding in case it does.

Any advice be greatly appreciated!
 
No personal experience but the common advice given on AAM is that you will not get a mortgage on your own as a married person, and certainly not with someone else.

You say you don't want to borrow maximum capacity, and you have a very high joint income and deposit already saved. Would your partner be able to purchase on his own? You may be able to "buy in" once the divorce is concluded. But this would need careful legal and tax advice.

Otherwise you have my sympathies. The divorce system in Ireland is far too lengthy and costly even when things are very simple.
 
A separation agreement was sufficient in my case so long as it had particular things called out around future assets etc, cant remember the exact wording
 
Can you agree to sell the house? Likely there'll be nothing left once fees are paid but you won't be encumbered either.

Then you could draw up a separation agreement & sign it off between you; that would likely be sufficient to allow you progress with buying a new house. Caveat IANAL

You can still let the divorce proceedings meander on in the meantime.
 
Thirsty said:
Can you agree to sell the house? Likely there'll be nothing left once fees are paid but you won't be encumbered either.
Click to expand...

If it's a profitable rental with a boom-era tracker mortgage then it may be worth holding on to by either party.

Selling a property mid-divorce is possible, but potential buyers, estate agents and solicitors may see risk if both you and ex-to-be don't seem fully committed to the sale.
 
I was separated and got a mortgage (my first ever), but we didn't have one to start with or any properties to split either. It was my lawyer who wouldn't let me sign contracts without a Deed of Separation and a Deed of Waiver. The bank didn't ask for any of those. You could ask a broker who may have experience with your situation. It worked out for me.
 
Thank you all for taking the time to reply!

My current property is on a good tracker...but to get rid of the headache I would gladly sell...getting the other party to engage, let alone agree is the issue.
I think we may look at the option suggested of my partner buying, and if there could be on option contracted for me to buy in later.
Will certainly talk to a broker too....just in case there’s something they can advise.

Thanks again for your inputs!
 
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