Best way to re-mortgage after divorce

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New user here - I am in the process of divorcing my husband here in Ireland. Terms of the settlement mean that I will buy him out of the family home for €100,000. There is a joint mortgage of €80,000 on the home (fixed rate of 2.4% (ending November 2027))

Between savings and an interest-free loan from family, I have the €100,000 in cash.

Should I pay my ex husband the €100,000 and continue payments on the current mortgage (having removed my ex from the mortgage and title)?

Or is a better option to use €80,000 of savings/family money to pay off the current (joint) mortgage and apply for a new mortgage in my own name? Repayments/stress testing/loan repayment would be fine with my salary.

Looking for the most straightforward option.
Many thanks.
 
You have a good rate, I don't see why you would give it up.

Have the bank said that they will allow you to remove your ex husband from the mortgage? Even if they won't, that will be his issue, not yours. He will remain liable to the debt of the mortgage if you stop paying it.

I don't see why you would delay things and make it more complicated by using the money to pay off the mortgage and applying for a new one at a higher rate.
 
@Steven Barrett - The bank won't say until I send in the paperwork. There is no issue with affordability. Terms of settlement mean that I am responsible for getting him removed from the mortgage.

It seems the simplest thing is to pay my ex the lumpsum from savings and get him removed from the mortgage.

Thanks for your reply.
 
You have a good rate 2.4% which is about 1% below the market rate.
You have it for another 18 months or so.
Your mortgage is €80k, so you are would save around €1,200 if you keep the present mortgage.
This is immaterial in the overall context so it should not be a factor in your decision making.

You should be seeking to pay your husband and get a new mortgage in your own name.
This is the simplest solution.
 
1) Pay your husband the agreed amount and get that bit out of the way.

Then do the rest simultaneously.
2A) Ask your lender to "remove his name" from the mortgage. I think that they don't just tippex out his name and everything continues as normal. They will issue you with a new mortgage for the €80,000. If they agree to do this, then go ahead. Don't complicate things by arguing about it.

2B) Apply to two other lenders and see if they will give you a mortgage. Your own bank might refuse or might take a long time to approve it. So don't rely on them.

2C) Apply to your Credit Union for a mortgage or even a term loan.

When you see the results of 2A) 2B) and 2C), you can decide which is the best option for you.

3) Can your family come up with another €80k to clear the mortgage? Have that as back-up.
 
Is there any advantage in clearing the mortgage first and then looking for the money to buy out your ex?

1) The big downside is that the banks will probably refuse to give you a mortgage just to pay off your husband. They will give you mortgage to switch from your current lender. This is irrational but that is the way the banks work.

2) There could be an upside for your husband in that he might find it easier to get a mortgage if his name is off the old mortgage. But then he would have an unsecured loan owed by you and he would have no leverage in getting you to pay it.

So I don't think that there is any advantage in clearing the mortgage first.
 
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