Am I liable for my wife's mortgage?

Hi,

My wife got a mortgage of €500,000 about 7 years ago (before we met) at the height of the market. She now has limited means of income and not much in the way of prospects. We got married about 1 1/2 years ago and I've been paying the mortgage, around €2,400 per month, out of my salary of €63,000 per year. We are currently trying to have a child through I.V.F. and have spent €20,000 on it over the past 14 months. Due to the I.V.F. I cannot afford to pay the mortgage so I have taken the hard decision of submitting a Standard Financial Statement to KBC band and not paying the last two mortgage payments.

My question is am I liable for my wife's mortgage? I'm am not on any of the documents and have had no involvement with the bank. I am simply not willing to give up on having children (we're both 41) to pay for a mortgage I have nothing to do with and can just about afford....

What's my liability? My wife and I are willing to lose the house in our pursuit of a family

Thanks in advance....

Micklin

Your wife borrowed in her name only, the mortgage contract is between her and her Bank, you cannot be chased for the repayments or held liable for her inability to pay.

Your income will be required if you follow the SFS process and are looking for help under the formal mortgage arrears resolution process.

I have taken the hard decision of submitting a Standard Financial Statement to KBC band and not paying the last two mortgage payments.

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Why are you submitting the statement? She should be.

Are you living in the house? If so, you should be contributing to the rent.

What is the current value of the house?
What is the interest rate?

If your wife is not able to pay the mortgage and if you are not willing to contribute to it, then she should talk to the lender about exiting the mortgage. She can sell the house but she will still be liable for the shortfall. But if she has no income, then there isn't much that they can do about it.

If she doesn't have much in the way of prospects, then she can enter a Debt Settlement Arrangement and try to get the shortfall written off.

There is no way they can hold you liable despite what their solicitors might tell you.

Gosh, we have the same story. I have a very unstable mortgage and we have a little money set aside for IFV or adoption, and have been loathe to declare bankruptcy because of this. Anyway, I was worried that my husband would end up being liable for my debts as Ireland's law is in-community of property but I was assured that he cannot be prosecuted for my debt.
Good luck with everything. The stress sure doesnt help!

Hi Brendan,

Thanks for your reply!

I was advised by MABS to submit the Standard Financial Statement in both our names.

I am living in the house and paying "rent" into my wife's current account.

The current value of the house is around €170,000 and the mortgage stands at €426,000. Out interest rate is 4.25%

Basically, I'm not willing to pay the mortgage for the next 12 months (until we have exhausted all IVF opportunities). Once we either successfully or unsuccessfully finish the IVF, I am willing to pay her mortgage again. From my perspective, the bank can either come to an arrangement with me and enjoy the possibility of having the mortgage paid in full or not they decide not to work with me, and my wife will enter a Debt Settlement Arrangement where they will have to face a significant loss on the house.


Mick

Thanks Munchy! Good luck with the IVF and don't forget to get a Drugs Payment Scheme card and to claim back the tax on your treatement (we got 3,600 back for last year)

micklin said:

My question is am I liable for my wife's mortgage?

What's my liability? My wife and I are willing to lose the house in our pursuit of a family

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You have no liability for your wife's mortgage whatsoever.

In relation to the IVF, as you know your ages are against you so you need to do everything you can to go through this. And presumably you know that stress doesn't help. So forget about the bank, in any case they cannot do anything to you. And concentrate on the IVF. Best of luck with that. Hope it works out for you both.

Palerider said:

Your wife borrowed in her name only, the mortgage contract is between her and her Bank, you cannot be chased for the repayments or held liable for her inability to pay.

Your income will be required if you follow the SFS process and are looking for help under the formal mortgage arrears resolution process.

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Can you explain the last bit of that please?

Bronte said:

You have no liability for your wife's mortgage whatsoever.

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Not to cast a very negative outlook on it but surely if your (or ones) wife is liable for the mortgage, then down the line anything that she inherits will become fair game for the bank to take in payment? That could include hubbies assets surely or potentially their children's inheritance?

Matt.