What happens joints mortgages where only one owner goes for a PIA?

[Brendan Burgess]

Scenario 1

Johnny and Mary are not married and own a home together.

property value|€150k
Mortgage|€250k
Mortgage rate|SVR

Johnny goes for a PIA where the PIP recommends selling the home. Mary is solvent and is not involved.

There is no point in writing down the mortgage as Mary is jointly and severally liable anyway.

The bank may as well allow Mary to take over 100% ownership and 100% of the mortgage.

There isn't much point in the bank vetoing the sale or the PIA, though I suppose that they could do so.

So Mary ends up with a mortgage of €250k on a home worth €150k.

If Mary can make the repayments, the bank will be happy.

Or the PIA could exclude the home and mortgage altogether although Johnny might still be insolvent.

Scenario 2 - cheap tracker


Paddy and Ann are not married and own a home together.

property value|€150k
Mortgage|€250k
Mortgage rate|cheap tracker

The bank wants out of the cheap tracker.
They refuse to allow Ann buy out Paddy.

Could the home loan and mortgage be left outside the PIA?

No adjustment, so the mortgage just continues.

If they can jointly meet the repayments on the mortgage, then Paddy would not be insolvent.