Divorce but other party wants out of joint mortgage

Discussion in 'Issues arising from joint mortgages' started by dan rather, Dec 30, 2017.

  1. dan rather

    dan rather Registered User

    Posts:
    22
    Hi all,
    Value of property:240,000
    Mortgage amount outstanding:190,000
    Interest rate and type e.g. tracker ecb + 1%
    Lender:boi
    Term remaining:16 years
    Rent: 1200
    Monthly repayments:840
    Other expenses: 150
    Car loan:14,000
    Salary 44,000
    Bonus payment on yearly basis
    What are the chances boi will immediately release my ex from the mortgage and remove their name same as we have a buy our agreement in principle and all other matters re. the divorce settled
     
  2. Brendan Burgess

    Brendan Burgess Founder

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    35,034
    You are asking for a mortgage of €190k on a salary of €44k. That is 4.3 times loan to value.

    I don't think that they will approve that.

    The only thing to do is to ask and see what they say.

    As you have a car loan of €14,000, I presume that you don't have €50k lying around to bring down the mortgage?

    Brendan
     
  3. dan rather

    dan rather Registered User

    Posts:
    22
    Thanks Brendan, do you know what way bonuses are assessed when mortgage ltv is being considered and what is the max ltv boi tend to offer (if they considering special cases at the start of each year I mean)?

    No 50k lying around unfortunately
     
  4. Brendan Burgess

    Brendan Burgess Founder

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    35,034
    Hi Dan

    I don't know how they consider bonuses. When granting a mortgage to a new customer they might be flexible.

    But BoI would be reluctant to let a joint borrower off the mortgage and so would be looking for reasons not to allow her off.

    They would also want to see you off your tracker and might be prepared to do a deal in exchange for giving up the tracker. But given the trouble that lost trackers got banks into, they probably won't go down that road, even if you were prepared to consider it.

    Brendan
     
  5. dan rather

    dan rather Registered User

    Posts:
    22
    Hi Brendan,

    So lets say I managed to source the 50k from a friend/relative off the books so the bank will have no knowledge of it. Would boi then accept this 50k as a write down on the mortgage how does this work without a new mortgage? I presume tracker would have to go then as it would be a refinance.

    Also on a separate note if know whether the property being in positive equity means I can shop around for a slightly better ltv (if boi point blank refuse to deal with me and release my ex) or are there other variables I'm not considering that would prevent another bank from dealing with me?

    Dan
     
  6. Brendan Burgess

    Brendan Burgess Founder

    Posts:
    35,034
    Hi Dan

    You should not be giving up your tracker. It's extremely valuable.

    Your starting point should be to get the mortgage in your own name and keep the tracker.

    If they refuse, ask why. If they say that the LTI is too high, ask them to confirm that they will allow you to take her name off if you can find €50k.

    If they still refuse, do a side deal with your wife.

    Brendan
     
  7. dan rather

    dan rather Registered User

    Posts:
    22
    Ok Brendan, I had thought the tracker scandal could be a help to me but see now as you say it could be a hindrance
     
  8. Brendan Burgess

    Brendan Burgess Founder

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    35,034
    Yes. I have heard of AIB giving people back trackers which they had surrendered as part of a separation agreement.

    I would say that the banks would be very reluctant to run that risk again. If I were BoI, I would simply refuse outright. If you pay off your mortgage, great.

    Brendan
     
  9. dan rather

    dan rather Registered User

    Posts:
    22
    Brendan do you think I could get another bank to deal with me considering the above ltv figures just in case BOI refuse? Of course I would have to pay the 50k off the sum before the refinance

    I would have a bad feeling about boi to be honest if I get stripped of tracker from them and would like to try to go to ptsb instead with refinance as I have a personal account with them

    Thanks again as your experience with this matter could be invaluable though I'm aware each situation is unique
     
  10. Brendan Burgess

    Brendan Burgess Founder

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    35,034
    There really is only one way of knowing and that is applying.

    It may be worth your while using a mortgage broker as they would present your case in the best light.

    But exhaust BoI first.

    Is your ex buying her own house immediately? If not, then she should be happy enough with a side deal where you take responsibility for the mortgage and she renounces her interest in the house. That way you keep the tracker and she is not really affected.


    Brendan