Getting a mortgage on a 2nd property (marriage breakdown)

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Aodhán

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I earn €80,000 gross, and I'm currently paying €1250 nett (incl LPT and mortgage protection) as my share per month on the family home mortgage with my soon-to-be ex-wife. I'm obviously looking at my post-divorce options. In the event of a judge not ordering that the family home be sold, renting in this area, with sufficient rooms for my children to stay with me, would start at €2500 (at the very, very least).

It will be almost 20 years before my youngest becomes 23 so that will be a long, long time renting/paying dead money for sub standard accommodation for my children. The obvious question: is there any way on this income that I can get a mortgage to buy my own property?

If the court were to order the family home be sold, then we could each buy comparable homes on our respective incomes (she earns more than I, and works longer hours outside the home but she is a she). However, I've been told the family law courts have a cult-like addiction to not selling the family home for "stability" reasons (but removing the father from having the financial ability to live close enough to support his children apparently is "stability", where the children can magically suddenly develop resilience, in this exchange).

So, on this income, what financial options do I have in terms of my post-divorce home? Thank you.
 
If the family home is sold how much equity would you both have after mortgage is repaid? Then could you both buy in your current neighbourhood? If you can’t I don’t see the benefit to the children in selling the family home.

If you have 50:50 share of the kids time, How about renting a small flat nearby and both you and your spouse taking turns living in the family home with the kids? Both of you would benefit from the family home and provide stability for the kids?

And perhaps that is a stupid idea but maybe more importantly when you and your spouse discuss parenting what do ye jointly think is best for the children?
 
Given your wife earns more could she remortgage in her own name and free up your income for your housing needs? It may be better (or less complicated) for you to be off the existing mortgage and pay more child support. I'm no expert, so could be completely wrong, but while the cost might be the same to you a lender might class existing mortgage commitments differently than they would child support.
 
Aodhán said:
I earn €80,000 gross, and I'm currently paying €1250 nett (incl LPT and mortgage protection) as my share per month on the family home mortgage with my soon-to-be ex-wife. ....

So, on this income, what financial options do I have in terms of my post-divorce home? Thank you.
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3.5 gross income will be a lenders starting point. A lender will also look at your repayment capacity. This will factor in your age and other commitments (child support, car loans etc ) and stress test your capacity at a higher mortgage rate. This may result in an income multiple of less than 3.5.

Remember if you want to unlock the full income multiple you will need a deposit that matches. As a second time buyer you will need a deposit equivalent to 20%.

There are exceptions to these rules but this should be your starting point.
 
There would be €300,000 equity (after legal and auctioneer fees), so €150k each to put on a deposit. Each of us could get a mortgage of c. €300k if we get an 'exception', so €450k would be our budget. That would get two homes in a nice area 8km away. They would be smaller than the current home, but both parents could live close to each other to give support to the kids, rather than her proposal of keeping the current family home but my not being able to afford to live near the children.
The new place would also be near a DART station, which would, ironically, make it easier to get to the children's current school (which is next to another DART station). The big benefit in having two family homes is not simply that the kids would have both parents next to them - there's no way she would be able to parent adequately even 50% of the time as she has a high-pressured job - but that finally our finances would be separated and we could have far greater independence from each other (we would be doing 50:50 parenting so I wouldn't envisage any maintenance).
 
No, unfortunately she would not have the capacity or resources to cover my share of the mortgage (house in southeast Dublin), never mind give me 50% of the house's current equity so I can put it towards a deposit on my own place. So, if the house is kept, it's hard to envisage it being kept without my name being on 50% of the mortgage. Which, of course, is a fundamental impediment on my ability to buy my own home again.
 
In the event of not selling the "family home" and instead "nesting", where the couples rotate residence in the family home, a second home would be required.

I checked with BofI today and they said on our current situation, we could get a mortgage for a 2nd place (Dublin prices) worth €245,000 on top of our main home. However, we would need to produce a 30% deposit ("and associated costs") of that, so they would lend c. €170,000 of the €245k. I cannot see us producing €75k cash as a deposit (although we have the above equity in the current family home). What are our options in this?

I did a random fixed mortgage on a €350k 2-bed property and the monthly repayment would be €1500 per month, or €750 each. If we had to rent a 2-bed it would be €2,500 or so per month. It seems incredible that we'd be able to pay that monthly rent, but not get a mortgage with a significantly cheaper monthly repayment. What options are there? What lenders might be more amenable to this situation than BofI is? Also, could we benefit in any way from the government's 10% deposit "Fresh Start" initiative from January/April 2022, where separated people are supposed to be treated as "first-time buyers"? We are in no-man's land here; we can't separate until the house is settled (there'd be no hope of buying a separate place on one income, which is jointly servicing the mortgage on the "family home"), so are not technically separated (and there are also CGT implications, as far as I'm aware). What's the best way to resolve this? Thanks.
 
I'm sorry I am absolutely no use to you re a solution, but I can definitely empathise and sympathise as I too am in a similar situation, but worse off financially, hence more trapped.

I am the female party, husband refuses to ever move out, and we coulsnt affird a seperate rent in Dublin anyway, marriage is dead, 3 kids . I stayed home with them full time for 4 years, only recently back in employment on a low salary.

So, just feeling absolutely trapped, my youngest is 5, my only hope is better paid employment soon,( I have the experience and qualifications to earn more but took present role as just back in the workforce.) And just wait it out for few year until finances are better.

Sorry, don't mean to de rail your thread, but, it's such a difficult situation, I hope you can find some solution.

I will be watching this thread myself to see if anyone can offer you any potential solutions.

Best of luck with it all .
 
Doorstop said:
I'm sorry I am absolutely no use to you re a solution, but I can definitely empathise and sympathise as I too am in a similar situation, but worse off financially, hence more trapped.

I am the female party, husband refuses to ever move out, and we coulsnt affird a seperate rent in Dublin anyway, marriage is dead, 3 kids . I stayed home with them full time for 4 years, only recently back in employment on a low salary.

So, just feeling absolutely trapped, my youngest is 5, my only hope is better paid employment soon,( I have the experience and qualifications to earn more but took present role as just back in the workforce.) And just wait it out for few year until finances are better.

Sorry, don't mean to de rail your thread, but, it's such a difficult situation, I hope you can find some solution.

I will be watching this thread myself to see if anyone can offer you any potential solutions.

Best of luck with it all .
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Well done on getting back into the workforce. That is the most difficult step and while itsy be extremely tough for few years, you can build up your skills again.


For the OP, im unclear why the ex cannot buy you out. Can you provide details of remaining mortgage etc. A transfer of equity, with your name off of mortgsgeand deeds would be cleanest way and then you can look to purchase.
 
The mortgage remaining is €460k, or €230k each. The equity is €300,000 (perhaps a bit more). She would not have the income to take over the €460k mortgage (she's on c. €80k), even if the bank were to allow me to remove my name from the mortgage. I would also need €100k of the equity to put towards my own place, so she would essentially need to get approval to take on €330k more in debt in order to buy me out. What sort of solutions do people come to in such a scenario?

The prices to rent in this area are off the charts, and at least twice what I'm paying for this mortgage. At least (and that's if there's anything available) I really don't know how a court could expect any ordinary person to continue paying the mortgage and rent here at the same time. Does anybody know what courts are judging in this sort of situation?
 
Aodhán said:
Each of us could get a mortgage of c. €300k if we get an 'exception', so €450k would be our budget. That would get two homes in a nice area 8km away.
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Aodhán said:
.The big benefit in having two family homes is not simply that the kids would have both parents next to them - there's no way she would be able to parent adequately even 50% of the time as she has a high-pressured job - but that finally our finances would be separated and we could have far greater independence from each other (we would be doing 50:50 parenting so I wouldn't envisage any maintenance).
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This seems like an ideal solution to me. What does your spouse think? The advantages of having two similar houses for joint parenting is great. If you are both agreeable and have the details sorted out then I am sure a judge would look favourably on the proposal. I had thought your wife earned significantly more than you with the high pressure job but it sounds like you are both on @80K so it all looks very equitable.
I would not dwell on her ability to parent less than 50% of the time unless you can both agree that you will do more (eg all school drop offs and pickups, after school activities, etc. Another bonus is if you have a childminder they can use either house if close to each other.

Best of luck
 
What about refitting the family home in some way so that you all continue to live there? Is that an option? Or to purchase some type of granny flat in the garden, and rotate use of that?
Not ideal but i dont see how you can pay both mortgage and rent.

Even on the mortgage front if you sell current property are you sure that each of you will get 3.5 times mortgage? Lenders will look at dependents and outgoings including childcare, loans etc which will impact the ability to repay.
 
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