Hi Moll
The offer is a great offer. They are reducing the rate of interest to 0.05%! In other words, almost all his repayments for the next 5 years will be capital. So he will have reduced the balance outstanding from €403k to about €334k.
It's a fixed rate, so he is protected from general rate rises.
Could he rent a similar apartment for less than €1,147 per month or €1,300 a month to include maintenance fees and property charges? If he can't, then it's likely that he should jump at this. OK, his ex partner will continue to jointly own the property, but so what? He is getting good value accommodation for the next 5 years.
What are the alternatives?
If the apartment is in deep negative equity and if he has other debts, and if he cannot afford the repayments, then he could consider going bankrupt. That would certainly sever the tainted relationship. Even better, his ex would now be fully liable for the debt.
How much is the apartment worth? He will have a mortgage of €334k after 5 years. Is there a reasonable chance that the apartment will be worth that after 5 years? If so, then he can try to sell the apartment and be free of the mortgage. It could well be messy in that his ex might not co-operate. But then he can ask the lender to seek repossession in the courts.
It would be great if he could get his ex to cooperate. Does she realise that she is still liable for the full debt? Does she realise that she will be prevented from borrowing again, because of the arrears on this mortgage? What does she want? But she might be happy just to let him pay the mortgage down and build up equity in the apartment. Then if he ever wants to sell it, he will need to pay her off.
Fortunately, there isn't any practical way of forcing the ex to co-operate if she chooses not to.
Brendan