I am putting my case out here to get some feedback, because I can't figure out what to do anymore.
I've ended up as the sole responsible party in a joint mortgage after my ex-partner moved abroad and declared himself bankrupt there. This was an expensive boom-time house, purchased with a 100% mortgage. My ex-partner was the significantly higher earner so financially I now have a tough situation with a mortgage that I cannot/will not be able to afford for the foreseeable future.
The bank has offered a split mortgage, which would relieve the financial pressure for now, but I'm struggling to accept it. The amounts are reasonable to start off with, but I'm struggling because of the T&C associated with this arrangement - the bank has a lot of power over my financial situation (reviews, SFS's etc), improved earnings will be assumed to go towards the debt, and if I don't significantly improve my earnings I will face the full warehoused half of the loan at the end of it all.
I've sought legal/financial advice on this as well, but it has proven not to be an easy task to find someone that doesn't just do the basic maths and say "you can afford it, just accept"...
Income details
Net monthly PAYE €2050 p/m, single
Personal circumstances so we can calculate your reasonable living expenses
Latest SFS was submitted with expenses totalling ca €1300 p/m
Single, have a car, no dependents, high medical costs (€150 p/m), additional costs on travel (I am not from Ireland so I have counted visiting my family once a year as a sort of an entitlement rather than a luxury, please don't judge me on that).
Home loanLender:
Amount outstanding: €358k (incl€26.5k arrears)
Value of home: not valued, but estimate €220k - €240k based on similar properties in the estate
Interest rate: tracker 1.55
Monthly repayment: full repayment €1300, split offered €660
Amount in arrears : €26500
Summary of discussions and agreements with the banke.g.
in MARP since 2012 - seen it all - interest only, moratoriums etc.
After a period of making no payments I've now completed 6-month trial of payments to get a proposal from the bank - they've offered a split mortgage @ €660 p/m
No other loans, no significant savings
Do you expect any lump sums in the medium term future? Redundancy, inheritances, injuries awards.
No
How important is retaining the family home to you? Which of the following best describes your situation?
I would like to keep it, but will get rid of it if it means I can get rid of the mortgage associated with it.
Any other relevant information
The split mortgage seems to be like a permanent state of insolvency and this is the main reason why I have not accepted it (yet) - any pay increases will disappear into this enormous debt and I will financially never really recover.
There is also the "unknown" of any actions due by the insolvency office that managed my ex-partner's bankruptcy. I have not been informed about any action or intentions they may have in relation to the property.
What is your preferred realistic outcome?
I will never be in a position to repay this entire home loan by myself. I would love to keep my home if I could achieve a write-down to reduce the amount overall (not just a split for the sake of being manageable temporarily), but this does not seem realistic so I am convincing myself that I should close the door on it... I have not yet figured out how exactly to do that either.
I've ended up as the sole responsible party in a joint mortgage after my ex-partner moved abroad and declared himself bankrupt there. This was an expensive boom-time house, purchased with a 100% mortgage. My ex-partner was the significantly higher earner so financially I now have a tough situation with a mortgage that I cannot/will not be able to afford for the foreseeable future.
The bank has offered a split mortgage, which would relieve the financial pressure for now, but I'm struggling to accept it. The amounts are reasonable to start off with, but I'm struggling because of the T&C associated with this arrangement - the bank has a lot of power over my financial situation (reviews, SFS's etc), improved earnings will be assumed to go towards the debt, and if I don't significantly improve my earnings I will face the full warehoused half of the loan at the end of it all.
I've sought legal/financial advice on this as well, but it has proven not to be an easy task to find someone that doesn't just do the basic maths and say "you can afford it, just accept"...
Income details
Net monthly PAYE €2050 p/m, single
Personal circumstances so we can calculate your reasonable living expenses
Latest SFS was submitted with expenses totalling ca €1300 p/m
Single, have a car, no dependents, high medical costs (€150 p/m), additional costs on travel (I am not from Ireland so I have counted visiting my family once a year as a sort of an entitlement rather than a luxury, please don't judge me on that).
Home loanLender:
Amount outstanding: €358k (incl€26.5k arrears)
Value of home: not valued, but estimate €220k - €240k based on similar properties in the estate
Interest rate: tracker 1.55
Monthly repayment: full repayment €1300, split offered €660
Amount in arrears : €26500
Summary of discussions and agreements with the banke.g.
in MARP since 2012 - seen it all - interest only, moratoriums etc.
After a period of making no payments I've now completed 6-month trial of payments to get a proposal from the bank - they've offered a split mortgage @ €660 p/m
No other loans, no significant savings
Do you expect any lump sums in the medium term future? Redundancy, inheritances, injuries awards.
No
How important is retaining the family home to you? Which of the following best describes your situation?
I would like to keep it, but will get rid of it if it means I can get rid of the mortgage associated with it.
Any other relevant information
The split mortgage seems to be like a permanent state of insolvency and this is the main reason why I have not accepted it (yet) - any pay increases will disappear into this enormous debt and I will financially never really recover.
There is also the "unknown" of any actions due by the insolvency office that managed my ex-partner's bankruptcy. I have not been informed about any action or intentions they may have in relation to the property.
What is your preferred realistic outcome?
I will never be in a position to repay this entire home loan by myself. I would love to keep my home if I could achieve a write-down to reduce the amount overall (not just a split for the sake of being manageable temporarily), but this does not seem realistic so I am convincing myself that I should close the door on it... I have not yet figured out how exactly to do that either.