Hi Donkey
I have set out the options facing someone in your situation in this Key Post
What if the ex refuses to contribute to the mortgage or even discuss it?
You have a mortgage of €387k @ 2% interest rate.
The annual cost of paying just the interest is €8,000 a year.
This is all you should pay.
If you make the full repayment, you are gradually reducing her negative equity and liability. So by just paying the interest, her liability will remain.
You can easily afford €8,000 a year.
The bank won't like this, but then you can have 4 sayings:
1. I acknowledget that I am joint and severally liable for the full amount outstanding.
2. MARP or no MARP, I am happy to disclose the full extent of my dealings with my ex
3. Any alternative arrangement to interest only, requires the agreement of both parties - let me know when you get my ex's agreement.
4. My hands are tied.
You will get relatively cheap accommodation for the foreseeable future.
Your ICB record is damaged already due to the arrears. You won't be able to repair it for some time, but this is the least of your worries.
There is a risk that the bank will repossess, but they will have to take legal action against both of you. I think it's unlikely while the interest in full is being paid.
Write formally to your ex and let her know what you are doing.
Every 6 months or so, send her a copy of the mortgage statement.
You might also consider renting out the spare room and retaining the rent as part of any settlement.
There is no question of bankruptcy here. Banks do not make people bankrupt over ordinary home loans. They might repossess it and if they move to do this, then you contact them and agree to co-operate fully in the repossession process.