How do I get my ex off the mortgage?

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nonamegame

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I am legally separated.
Tracker Mortgage is Ubank ECB+ 1.15%. Current rate 3.15%.
Tracker is moving to AIB. So maybe I can apply in my own name for a mortgage then?
I am in process of divorce. Mortgage is in both names.
I pay the mortgage. He is not in the picture.
I couldn't switch provider as this would have needed both signatures on forms. House is in my sole name.
O/s mortgage - approx 315,000 / 22 years. House Value approx 280,000. No arrears. No other loans.
Current payment 1595.00.
I have old Kerry Shares value after CG about 120,000 at todays rates. No other savings really.
My salary 2668.00 pm net.



I want to be able to save money and have a more manageable mortgage payment.

Any ideas welcome and help
 
nonamegame said:
I am legally separated.
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nonamegame said:
I am in process of divorce. Mortgage is in both names.
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nonamegame said:
Tracker is moving to AIB. So maybe I can apply in my own name for a mortgage then?
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You really need to talk to your solicitor about this, especially given the fact that the property will presumably be subject to the restrictions laid down by the Family Home Protection Act until after divorce has been settled. Unless that was already dealt with via the Judicial (?) Separation Agreement?

Family and shared homes

What is the difference between a family home and a shared home? Can my partner sell our home if we break up?
www.citizensinformation.ie www.citizensinformation.ie
 
This will all be part of the divorce agreement.
There really isn't anything you can do about it at this stage.
It's very unlikely that he would agree to anything prior to the overall settlement.


nonamegame said:
My salary 2668.00 pm net.
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nonamegame said:
O/s mortgage - approx 315,000
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nonamegame said:
I have old Kerry Shares value after CG about 120,000 at todays rates.
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Irrespective of what divorce settlement you come to, the lender will not allow him to take his name off the mortgage until you can clearly afford it.

Sounds like you have a gross salary of €40k. The most any lender would give you would be around €160k.
So the figures don't add up.

€160k + €120k = €280k - you need €315k.

Presumably he has some claim on the house and on your shares. Unless he has assets himself.

The worst outcome for you would be to allow it to drag on. You pay down the mortgage every month. The house increases in value and he comes back in 20 years saying he owns half the house.

So make sure that the solicitor is focused on getting an agreement that he will sign over the house to you even if he can't get his name off the mortgage.

Brendan
 
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Brendan Burgess said:
Presumably he has some claim on the house and on your shares. Unless he has assets himself.
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No Brendan. This has been dealt with in the separation agreement. No claim to house, fully signed over. No claim to shares - as these were an inheritance to me. The separation agreement has agreement paragraphs re: house signed over, any inheritances etc
 
nonamegame said:
No claim to house, fully signed over.
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But his name is still on the mortgage?
That seems odd?
What did the separation agreement and/or solicitor at the time say about that?
Bear in mind also that because we still don't really have "clean break" divorce in Ireland, never mind separation, some issues could still be revisited and reopened by either spouse.
Your solicitor should be able to advise on how best to mitigate any risks in this context.
They should also be able to advise you on his to get his name off the mortgage.
But Brendan has already outlined why the may be tricky given the numbers...
 
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Perhaps it might be possible to avail of the rent a room scheme. It would yield up to €14,000 per year. It is probably not ideal but worth thinking about.
 
nonamegame said:
I want to be able to save money and have a more manageable mortgage payment.
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nonamegame said:
Tracker Mortgage is Ubank ECB+ 1.15%. Current rate 3.15%.
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OK, so your question is about how do you get a lower mortgage rate?

I doubt that you will be able to switch lender.

You could fix with Ulster Bank for 5 years.

Your mortgage is €315k
Pay €120k off it, will bring the mortgage down to €195k

House value: €280k

€195k is 70% LTV

The 80% LTV rate for 5 years is 2.45%

Should you fix for 5 years at 2.45%?
Hard to know. You will have 17 years left after the fixed rate period without the comfort of a tracker.

If you don't fix, you will soon be paying 3.15% (ECB 2% +1.15%) This could rise, or fall.

It's a very close decision. If you can't get your ex's signature on the fixed rate application, then don't worry too much about staying on the tracker. You may be better off in the long-run.

Brendan
 
I think you should have a chat with Ulster Bank.

You have a current Loan to Value of 112% ( €315k/€280k )
Offer to bring that down to 90% by paying €65k off the mortgage on condition that they allow your ex off the mortgage.

They will probably refuse. But there is no harm in asking.

I suggest starting at 90% but be prepared to pay the full amount off it.

Even if the house is in your sole name, it really is beneficial to both of you to get his name off the mortgage. You will not need his consent to fix the rate or switch mortgage. He would find it easier to borrow if he didn't have a big mortgage.

Brendan
 
Slightly off topic but you mention Capital Gains in relation to the 'old' Kerry Group shares. Do you mean Kerry Co-op shares? AFAIK they are now subject to Income tax when converted to Kerry Group Shares and not Capital Gains.
 
Brendan Burgess said:
I think you should have a chat with Ulster Bank.

You have a current Loan to Value of 112% ( €315k/€280k )
Offer to bring that down to 90% by paying €65k off the mortgage on condition that they allow your ex off the mortgage.

They will probably refuse. But there is no harm in asking.

I suggest starting at 90% but be prepared to pay the full amount off it.

Even if the house is in your sole name, it really is beneficial to both of you to get his name off the mortgage. You will not need his consent to fix the rate or switch mortgage. He would find it easier to borrow if he didn't have a big mortgage.

Brendan
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Thank you I will for sure
 
nonamegame said:
I pay the mortgage. He is not in the picture.
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NoRegretsCoyote said:
Does the separation agreement not say who is responsible for the mortgage payments?

I'm not expert but it seems strange that it would be silent on this point.
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The usual practice is that he signs away his claim on the house and she agrees to pay the mortgage, which is what appears to have happened here.

Brendan
 
ClubMan said:
But his name is still on the mortgage?
That seems odd?
What did the separation agreement and/or solicitor at the time say about that?
Bear in mind also that because we still don't really have "clean break" divorce in Ireland, never mind separation, some issues could still be revisited and reopened by either spouse.
Your solicitor should be able to advise on how best to mitigate any risks in this context.
They should also be able to advise you on his to get his name off the mortgage.
But Brendan has already outlined why the may be tricky given the numbers...
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He is indemnified against all monies owed to the mortgage ( payments, arrears etc ). I agreed full responsibility for payment of the home loan.
Likewise I am indemnified to any loan payments, HP or arrears he has / may have
Peanuts said:
Slightly off topic but you mention Capital Gains in relation to the 'old' Kerry Group shares. Do you mean Kerry Co-op shares? AFAIK they are now subject to Income tax when converted to Kerry Group Shares and not Capital Gains.
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It is CG treatment if you sell on on the grey market.
Income Tax treatment if you avail of the redemption schemes. Only beneficial if on lower rate of tax
 
nonamegame said:
Thank you I will for sure
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Phoned them Brendan.
The answer was no.
The advice was to wait until the second quarter next year then when the mortgage is with AIB or PTSB, re-apply in my own name for new mortgage, then his name would legally be removed from the deeds.
I rang Mortgage Operations and asked re: if I paid of 70K off
This would bring the LTV to 58%
2 year fixed 2.95%
4 year fixed 3.15%
7 year fixed 3.55%
 
Ulster Bank has made it clear that trackers are going to AIB even if they are fixed before the sale. So not sure why they mentioned ptsb to you.

I am surprised that someone in the call centre had the authority to say no over the phone.

Depends on how strongly you feel about it. You should probably write a letter as well.


Brendan
 
I think you will have difficulty making changes to mortgage until you go through the Transfer of Equity process. Your current lender will look at your ability to repay to determine.
You will need to setup mortgage protection in your own name.
I dont know if another lender will deal with you until that is all sorted out. In my case, I had variable mortgage with KBC and had to submit docs as if it was a new mortgage. Took a bit of time but finally got the transfer completed and i then got a valuation to avail of lower rate.
Ive since sold that house and bought another home.
I found that solicitors can only do so much and i had to chase up KBC for numerous things.
 
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