200k mortgage with separation

Discussion in 'Issues arising from joint mortgages' started by pedromendez, Aug 1, 2017.

  1. pedromendez

    pedromendez New Member

    Posts:
    4
    Hello all,

    I took out a mortgage in 2006 with my ex partner. We have 3 kids together. We unfortunately split up and she left the house about 2 years ago.

    I stayed on in the house – kept up mortgage payments on my own as much as I could but have been seriously struggling to meet the repayments on one wage now since the separation. Her name is still on the mortgage but she does not want to contribute and has no intention to going forward.

    There are currently 20 years left on the mortgage - at a rate of 4.5%.
    Im now in arrears of approx 5,000 over the past 2 years since the separation.

    I have been dealing with MABS for the past while now trying to get help to try extend the term and get a resolution of some kind.

    I am currently paying a reduced amount of approx €700 temporarily, the full repayment should be aprrox €1,100 which is about 50% of my income. Hopefully ill be earning more in the future which should make the repayments easier.

    I really don't want to let the house go as its on family land so want to do anything I can to keep it for the kids. Ive thought about renting a room but very hesitant with the kids so young still.

    Anybody been in a similar situation? Any advice or thoughts appreciated.
    Thanks all.
     
  2. Thirsty

    Thirsty Frequent Poster

    Posts:
    1,545
    Your choices are essentially to either reduce your outgoings or increase your income; ideally both and you need to do whatever is necessary.

    Have you arranged for Child Benefit payment to be made directly to you as the primary carer?
    Do you have a maintenance order for the children?
    I'm assuming you weren't married? Is the house in your sole name?

    If you can rent one or more rooms, then I'd suggest you do that. It's more important to keep a roof over your head. Ideally if you have a playroom/tv room that you can use separately from your tenants that will give a bit more comfort.
     
  3. pedromendez

    pedromendez New Member

    Posts:
    4
    Thanks for the reply - yes i was married and the mortgage is in both our names.
    No maintenance order for the children - we try deal with the costs 50 / 50.

    Yes - I've thought about renting, I could look at renting a room but just so cautious with the kids so young and having someone in the home. If it's a last resort thing ill just have to do it of course.

    I guess the next step is to look for more money in work - or a new job that can offer an increase in my wages.
     
  4. bleary

    bleary Frequent Poster

    Posts:
    321
    Are the kids with you in the house the majority of the time, it's not really clear from your post.
     
  5. Thirsty

    Thirsty Frequent Poster

    Posts:
    1,545
    I've assumed that the OP is the primary carer, from what he has posted.
    Get one in place. It's impossible for you to budget otherwise.

    You didn't say if you have the Children's benefit paid to you?

    If you were married, then your former wife has a claim on the family home; if she is not, and doesn't intend to contribute to the mortgage, you need to get that rectified asap.

    I can absolutely understand the shell-shock of marriage breakdown; but it's two years later and now you need to start getting some legal stuff sorted. You can't limp on as you have been doing.
     
  6. pedromendez

    pedromendez New Member

    Posts:
    4
    Thanks for the reply and sorry about the delay responding.
    Sorry for the misunderstanding - I am not the primary carer - but we try deal with the kids on a 50/50 basis. The kids are with their mother a bit more than with me but they stay with me on average 3-4 nights every week.

    Yes i've started to get legal advice and am in the middle of trying to deal with it all now.

    We were married yes - so she has a say over the house - speaking to a solicitor he said i may have to pay my ex partner half of the amount what we had paid while living together. (would be in the region of approx €40,000) i think - but I struggle to see how i could afford that as i cant even afford the full mortgage repayment.
    If the tables were turned and she was still in the house - would she be asked to pay me the same?

    Thanks for any help or advice.
     
  7. Brendan Burgess

    Brendan Burgess Founder

    Posts:
    32,826
    Why are you paying 4.5%? I presume you are with Bank of Ireland or ptsb. Both have schemes by which you can reduce the rate you are paying.

    What is the value of the property? How much is outstanding? OK, I see it's €200k from the heading.

    That doesn't make much sense.

    If the property has risen in value since you bought it, it could be more.
    If the property has fallen in value since, it could be less - she could owe you.

    Provide the figures and we might come up with an idea.

    How much did you pay for the house
    How much was the deposit?
    Who paid the deposit?
    Did you share the repayments?

    Brendan
     
  8. pedromendez

    pedromendez New Member

    Posts:
    4
    Thanks Brendan,

    In response to your questions - the mortgage is with Ulster Bank - I didn't think there was any scope for adjusting the 4.5% rate while the mortgage is in arrears and we are working on a restructure package.

    Mortgage status is currently:
    Outstanding mortgage 200k
    House value approx 250k
    Arrears approx 8k (this has amounted over the past 2 years now while restructuring has been in progress after marriage separation)

    Built the house for approx 240K - currently 200k left on mortgage
    There was no deposit as it was a self build house.

    Shared the repayments while living together.
    The figure of 40k came from half of the amount we paid from the mortgage while living together.

    Im not in a position to pay a large lump sum to my ex partner for the house (and I know if the tables were turned she wouldn't be able to pay me this either). I will be barely able to afford the restructured payments. What generally happens in a situation like this?

    Thanks for your help.