possibility of interest only mortgage?

A

aoc

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separated for over 2 yrs - however have not informed mortgage co yet...
have discussed with ex - i live in family home with daughter, work part time but have good job. I pay all of the mortgage (as ex feels that as he does not live there nymore he does not need to pay it!!) - amicable split, honestly
:)
i am sure that i would not get mortgage approval to take over the mortgage on my own as work connected to the construction industry, tho i have had my job for over 11 yrs.

my hours are goin to be reduced again - could i approach bank about reducing payments or interest only mortgage for a period. Ex will sign and agree to any of this if it makes it easier.

messy i know.......
 
If you are in danger of going into arrears if you don't do something then you probably need to engage with your lender under the MARP process.

http://www.keepingyourhome.ie/

Perhaps you should regularise the situation with them regarding the separation and current living/mortgage arrangements but maybe this is not critical? You are probably still paying mortgage protection life insurance on his behalf even though he is not paying the mortgage. However this does mean that if he croaks then your mortgage is paid off so perhaps worth retaining?
 
not in danger of arrears at the moment at all... but just in case i don't get a 2nd job or more hours in works i don't want to be completely strapped.

i am paying the life policy too... so yes essentially if he kicks the bucket i get my mortgage paid off... so i have no prob paying that either.
but he's still on deeds so still has entitlement.... and bank will go after him if i default, which is obv not the plan and not what either party wants....

but what i am wondering is essentially are we required to inform the bank... is it just going to get messy / costly (which i cannot afford) and cause me more stress...
 
aoc said:
not in danger of arrears at the moment at all...
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In that case I don't really see your lender doing anything for you in terms of deviating from the normal scheduled loan/repayments. But if/when things change and you hard pushed to meet these then you should engage with your lender ASAP.
but he's still on deeds so still has entitlement.... and bank will go after him if i default, which is obv not the plan and not what either party wants....
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You probably need to get that sorted as part of an overall separation settlement.
but what i am wondering is essentially are we required to inform the bank... is it just going to get messy / costly (which i cannot afford) and cause me more stress...
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I don't think that you are obliged to inform them but it might make sense to do so and I can't see how it is going to cost you anything more than you are already dealing with. Unless part of any separation settlement involves you borrowing more to pay him off or something?
 
sahd said:
It's a joint mortgage - his daughter is living there - surely he should be paying half?

If/when the house is sold - will he expect half of any proceeds?
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Stuff like that needs to be sorted as part of an official separation process in my opinion. Otherwise there's too much vagueness.
 
It's a joint mortgage - his daughter is living there - surely he should be paying half?

If/when the house is sold - will he expect half of any proceeds?

- Yes it is a joint mortgage, however as ex is not living in house he feels that he should not have to contribute!

- house not going to be sold, we have agreed that he will sign over to me without payment.

I am trying to figure out the easiest and obv cheapest way to do this, but i simple think that bank will refuse me...
 
There are a few other threads about married or cohabiting partners splitting up and trying to switch a jointly purchased house into one of their names in case they are of any use?

In my opinion you need to talk to a/your solicitor about this and all other issues relating to separation in order to get clarity and resolution on them.
 
Yes.. i am reading them also.
I am trying to get as much info and be clear as i can before i go to a solicitor, the more i know and the clearer we are the less it should cost... well in theory :)
 
aoc said:
i live in family home with daughter, work part time but have good job. I pay all of the mortgage (as ex feels that as he does not live there nymore he does not need to pay it!!) - amicable split, honestly
:)
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Aside from your ex's obligation to pay maintenance, there is one very important question.

Did you buy the house for more than it's currently worth?

If yes, then your mortgage repayments are higher than they would be if you bought a place now. I don't think your ex has the right to walk away from that.

A simple situation would be if you both rented and he moved out, you could also choose to move out and rent somewhere else at market rates. If, however, your mortgage repayments are higher than this, you are paying more than for just living in the house. You are paying excess money because you both entered into a contract, and any element of the repayment relating to negative equity is a joint responsibility.

A quick example. If you bought a place for €300k that's now worth €200k, Your mortgage repayments might be €1800pm whereas you could get the same property now for rent or mortgage of €1200pm. To put it simply, you are tied into paying €600pm over the odds due to your contract with the bank. In that situation, as well as having no legal grounds, the other party has no moral grounds to say you should pay the full €1800pm.
 
current o/s in region of 176k - value about 140 maybe 130-135... i haven't looked into it. mort is 855 per month with about 35 yrs left.... (scary, try not to think about it). would prob get 650-700 if i rented it out, which is last resort.

we did agree that if he moved out he wouldn't have to pay the mortgage, as he is now renting a house etc and i felt guilty about the whole separation. so its my own makings really... and stupidly i suppose!

he pays me 40 per week main... tho i have asked him to up it.
 
ClubMan said:
In my opinion you need to talk to a/your solicitor about this and all other issues relating to separation in order to get clarity and resolution on them.
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I should have said that if things are generally amicable and perhaps not too complicated then mediation might also be a viable option.

http://www.citizensinformation.ie/e...ion_and_divorce/family_mediation_service.html

If you can agree most or all things through mediation or even through solicitors and avoid a full court hearing then it should keep costs down.
 
aoc said:
current o/s in region of 176k - value about 140 maybe 130-135... i haven't looked into it. mort is 855 per month with about 35 yrs left.... (scary, try not to think about it). would prob get 650-700 if i rented it out, which is last resort.

we did agree that if he moved out he wouldn't have to pay the mortgage, as he is now renting a house etc and i felt guilty about the whole separation. so its my own makings really... and stupidly i suppose!

he pays me 40 per week main... tho i have asked him to up it.
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It's messy alright. Even if there was no child involved he should be either be stumping up €20k up front or about €100pm for his share of the negative equity.

Probably no harm going interest only if you are the one paying the mortgage, but the bank would surely look at your joint means and may not think it necessary.
 
You need a solicitor of this or things could get very messy. Your ex cannot sign the house over to you now because the bank will not allow it. But you need to be protected in case in 20 years time the house is paid off and he comes looking for a share etc. It is well worth paying a solicitor for advice as what is amicable now may not be amicable in 5 years time etc. But well done on keeping it amicable.
 
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