What to do with mortgage - we are separating

Aodhán said:
As a separated/divorced person you are now treated as a first-time buyer (nobody has pointed this out). You, therefore, get any advantages which a first-time buyer receives, such as paying 10% deposit rather than 20%, and getting a mortgage for four times your income, with exceptions going to 4.5 times. In other words, on €70,000 per annum, you would be eligible for €280,000 mortgage, and up to €315,000.
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These are just the Central Bank prudential limits at market level.

Lenders may not want to go this far in the rising interest rate environment for a specific mortgage.

OP should talk to a broker.
 
I see that myhome.ie has 12 3-bed houses for less than €200K listed for sale in Limerick city. Aodhan has a lot of sensible advice above. If you sell your current home and both purchase 2/3 bedroom homes then you both will be able to co-parent your child.

You talk about not wanting to uproot your son but how does that allow you to co-parent? You must consider what type of home you will be able to provide for him in the next decade with you as a parent taking 50% of the responsibility for everything. So it looks like you can afford about €285K for a mortgage, that could afford you to buy a house similar to your own. Your wife has buying power of about €150K so it will be more difficult but there are 13 houses and apartments listed for around 150K or less on myhome.ie in Limerick currently.

You can afford to live in your own home and co-parent your child. Your wife cannot afford your current house. So you could suggest she look for a new affordable house/apartment suitable for her and your son. You remortgage your current home in your name and give her as much as you negotiate from the joint €90K you will get back from “selling” your current home to yourself. There will be several thousand saved in costs by doing it that way so your wife does benefit. As well as the intrinsic benifits to your son. Say you decided on €80K - that would give her buying power of €185K. Can she buy closer to work and get rid of the car? Is her job affordable to her if she needs to run a car? Or are you subsidising the cost with your salary?

In the meantime you and your wife should try to maximise your earning power and increase your savings. Even if you could bring in another €10K and if your wife could do the same it would be significant in making getting a mortgage easier and reducing your debt. Also you should split your finances now, and split all costs, chores, parenting tasks in relation to your son.
 
Aodhán said:
First, you. As a separated/divorced person you are now treated as a first-time buyer (nobody has pointed this out).
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wildrover4441 said:
Don't think my wife has any savings. She was out of work for a few years so had to use some of the savings.
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But will the OP qualify for a mortgage in light of the fact that he will need to be bought out by his wife. Realistically in light of the fact that she has no savings and has recently been out of work for a few years through illness will she actually qualify for a mortgage.

See here:

'This means that if a person has been bought out of their family home and no longer has a legal interest in property, they will be entitled to the 4 times salary categorisation for the purpose of borrowing'

https://www.dillon.ie/good-news-for...ry of first-time,interest in the family home.
 
Clamball said:
If you could get two units in the same block it would work out great for your child. Their needs are paramount in all of this.
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I was rereading this thread and thinking along the same lines.

We need property in this country that caters for people who have separated but have children. Not sure it would be commercial to build it.

But maybe you could buy or swap for a house with a granny flat? Not ideal by any means, but none of the solutions is ideal.

Brendan
 
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I don't think he needs to be bought out by his wife at all. The judge can order the sale of the family home, and the proceeds to be divided along whatever lines the judge sees fit. Once that is done, he is off that mortgage and can apply for one in his own name. Alternatively, his ex can agree to the sale of the family home, with the proceeds divided in whatever way. She could play hardball and expect to keep the home and for the father to be sent to bedsit land for the next 11 years/until their child is 23.
 
As I said in a similar thread, a "garden room" is ideal for this.

Strictly speaking you are not permitted to use it as a place to sleep, but I've yet to see any enforcement in the current market.
 
As a recently separated person with kids I cannot grasp the concept of Sharing a property / splitting it up / living in the garden . How does anyone move forward in their life and manage their well being in this scenario.
 
Clamball said:
How are you managed with housing @Introuble83 How have you split the parenting and supplies two homes for the kids?
Clamball said:
How are you managed with housing @Introuble83 How have you split the parenting and supplies two homes for the kids?
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had to move back with my folks which is obviously very difficult. The kids stay with me there 2 nights a week . I also see them daily for a few hours after school . A lot of driving . Not ideal . Still better than living with an ex wife . I have a new partner which helps as does no ex . Life goes on
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