Trying to agree a solution with bank for partner not on mortgage in arrears

T

Toad

Registered User
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I am wondering if someone could help advise in order to a I have property in arrears since abandoned by husband 8 years ago, however have met a partner and moved in together since then have gone interest only for 12 months and looking to come to an agreement with the bank however they are unwilling to meet a split mortgage request over the phone. Partner is not on any loan for the property and is unwilling to become a named party on the loan until arrangement reached.

Income details
Net monthly Income self: earning €2000 per month Public sector worker
Income history: full time employee for 10 years with company
Net monthly income partner/spouse: €3400 per month
Income history: full time employee 10 years with company
Amount of child benefit received: €260
Amount of Mortgage Interest Supplement received: €0
Do you need a car for work or do you use public transport? yes 2 cars required due to rural location in relation to work
Number of children 0- 2 years old:1
Number of 3 years old children:
Number of 4 - 11 years old: 1
Number of 12 - 18 years old:
Monthly childcare costs: 1000
Montly spend on special circumstances: 200

Home loan
Lender: AIB
Amount outstanding: €340000 (Excluding arrears)
Value of home: €280000
Interest rate: 4.58% SVR
Monthly repayment €1847
Amount in arrears €50k
MARP Process so far: Prior to meeting current partner was paying €200 per month for 3 years, arrears accrued during this time, since partner has moved in Paying interest only €1203 for 12 months, coming to an end to agreement with bank.
Investment property (partners property)
Lender: AIB
Amount outstanding: €160000
Value of home: €120000
Interest rate: 4.4 SVR
Monthly repayment €818
Amount in arrears €0
Monthly rent received €650
Credit Union (Partner's Loan)
Shares/Savings €6000
Outstanding Loan €23000
Monthly repayment €400
Term left 48 months
Other loans and creditors
Overdraft - €500
Credit Card - €5000 between 2 cards (partner and mine)
Credit Card - €200 monthly
Tax Bill - €1400
Tax repayments - €120 per month

Other savings and investments
No
Do you expect any lump sums in the medium term future?
No

How important is retaining the family home to you?

Which of the following best describes your situation?
I would like to keep it, but will get rid of it if it means I can get rid of the mortgage associated with it.
Any other relevant information
What is your preferred realistic outcome?
Would like managable mortgage in the form of a split mortgage, bank have been unwilling to agree to splitting €100k portion of mortgage (50k capital +50k Arrears) and extension of the terms to 30 years (currently 25 years remaining) in order to reduce monthly mortgage.
 
Hi Toad

With an income of €2,000 a month, with €1,000 going on childcare, it seems to me that your mortgage of €390,000 is not sustainable. If your mortgage is not sustainable, then AIB is right not to give you a split mortgage. One of the first tests for a split mortgage, is whether it is sustainable or not.

Is your ex husband's name still on the mortgage and title deeds? If so, then you would need to sort that out. Is he contributing to the mortgage.

Who is the father of your two children? Presumably your current partner and not your ex husband?

With €110,000 in negative equity, there is no way that your current partner should get involved in any way, unless AIB does some very generous deal for you.

I think you should contact the Irish Mortgage Holders Group and get them to discuss your options with you.

I think that you should be planning to go bankrupt. You can offer AIB an alternative along the following lines. Write down the mortgage from €390k to €300k and your new partner to add his name to the mortgage. That would be a sustainable mortgage and would be to everyone's advantage. If AIB says no, you must be prepared to go bankrupt and lose your home.
 
Thanks for the reply Brendan,

My oldest child is from the previous marriage, and the youngest child is with my current partner.

Also ex-husband is not contributing to the mortgage.

My partner and I are looking to move forward. How would bankruptcy affect our plans to get married and extend our family?

The mortgage becomes sustainable when you factor in my partners earnings, it seems like a chicken and egg scenario. Without a deal being done it is difficult to make the mortgage sustainable and we shouldn't do a deal involving my partner unless AIB offer an alternative.

Have made contact with the IMHO in the last week and am filling in a SFS so hopefully they will be able to assist.
 
Is your ex husband contributing to the maintenance of his child?

Is his name still on the deeds and the mortgage?
 
Yes €200 per month.

No, he was removed as a part of the divorce 2 years ago.
 
Are you sure?

He may have been removed from the deeds. But how did he get removed from a mortgage in deep negative equity. Or did you get a lump of cash to compensate you for the negative equity?

Brendan
 
Brendan Burgess said:
Are you sure?

He may have been removed from the deeds. But how did he get removed from a mortgage in deep negative equity. Or did you get a lump of cash to compensate you for the negative equity?

Brendan
Click to expand...

You are right, just contacted AIB Mortgage Support his name is still on the mortgage. He hasn't contributed since abandonment so really do not want his name on it, guess its another reason to sort this out.
 
Maybe you should go bankrupt!

Then he would be full liable for the mortgage. :)

If he has means, it's extremely unlikely that AIB will do much of a deal with you.

Brendan
 
My ex-husband doesn't have the means to repay (or at least he says).

Ideally I want to stay in the property I think going bankrupt would stop any chance of that. Hoping the IMHO can recommend some reasonable solution which will allow that but am prepared to move if needs be.

Thanks for the advice, will let you know of outcome from IMHO.
 
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