Mortgage worries

sheen1234

wordofwarning wrote: »

Would you sell it and walk away? Split the 50/50 profit with your ex and start a clean slate elsewhere?

How much would a similar house cost to rent? I know in some parts of the country, there is a glut of rental properties and some times it does not make sense to buy.

A part of me would love to just sell and walk away yes. Split the profits If there were any happplily and start afresh. But the house was built on family land so I really wouldn't like to. Strong link to the area. It's where the kids have grown up. Not much in terms of rental in the area but I would only save 100-200 per month max on a new house I would think.

lawred2

Sell up and move on.

Yourmama

I always think the longer the mortgage, the better. This gives you comfort of low monthly payment when you struggle and leaves you option to overpay to clear it sooner. Having said that I'm pretty good at it and since the beginning I overpay every single month, this may not be for everyone.

sheen1234

lawred2 wrote: »

Sell up and move on.

It's very easy to say something like that. But if I do sell up and move on, I'd be saving only 100-200 per month max (if even) - I'd have to uproot the kids, find somewhere new. Take them out of the home they've all grown up in. It's very close to their school, their friends, etc. They've already beeen uprooted by their mam twice now.

It's not a simple decision - and in my heart I'd hate to sell the house and do all that to the kids. I'll sooner keep it and pay til I'm 70 and live here. 10-20 years down the line who knows where we could be..

Cheers for the blunt honesty though - I've considered it quite a few times

aristotle25

The most important thing is dealing with your ex who jointly owns the property. You may think they want nothing to do with the house but people change.

They own half of the property. Even a simple thing like inheritance rights would see their half go to their next of kin or whoever they specify in a will. E.g. Maybe their new or future partner etc.

After that, you will get a better rate than 4% but you may have to remortgage with another bank. And extending your term is a good option for some short term relief on the repayment but you should overpay in a few years when you can more afford it perhaps.

And always keep doing things to increase what you can earn to make it easier.

Good luck. Get professional advice.

Also post your question on askaboutmoney.com and yuh will get good help.

aristotle25

Yourmama wrote: »

I always think the longer the mortgage, the better. This gives you comfort of low monthly payment when you struggle and leaves you option to overpay to clear it sooner. Having said that I'm pretty good at it and since the beginning I overpay every single month, this may not be for everyone.

The longer the term more interest you pay overall. Use some of the mortgage calculators online and see what it means.

The monthly repayment itself is made up of capital and interest. The latter is the one to look at. The capital is going off the mortgage so you get it back in the value of the house when you sell. The interest on the mortgage is the banks profit.

lawred2

sheen1234 wrote: »

It's very easy to say something like that. But if I do sell up and move on, I'd be saving only 100-200 per month max (if even) - I'd have to uproot the kids, find somewhere new. Take them out of the home they've all grown up in. It's very close to their school, their friends, etc. They've already beeen uprooted by their mam twice now.

It's not a simple decision - and in my heart I'd hate to sell the house and do all that to the kids. I'll sooner keep it and pay til I'm 70 and live here. 10-20 years down the line who knows where we could be..

Cheers for the blunt honesty though - I've considered it quite a few times

I didn't realise the kids were living with you. Ignore my advice. All the best whatever you do.

Nickypicky

sheen1234 wrote: »

It's very easy to say something like that. But if I do sell up and move on, I'd be saving only 100-200 per month max (if even) - I'd have to uproot the kids, find somewhere new. Take them out of the home they've all grown up in. It's very close to their school, their friends, etc. They've already beeen uprooted by their mam twice now.

It's not a simple decision - and in my heart I'd hate to sell the house and do all that to the kids. I'll sooner keep it and pay til I'm 70 and live here. 10-20 years down the line who knows where we could be..

Cheers for the blunt honesty though - I've considered it quite a few times

You are dead right. So much more sentimental value that money will never buy. Stick with your gut. Things work out.
I think I'd prefer to be happy where I live and know my kids have a happy and safe home rather than up rooting and living some where with no attachment, awful neighbours, bad area etc.

The current market is crap. So you could be moving to a house full of structural problems or god knows what else. Stick to your guns. I dont know what but something will work out.

I wish you the very best of luck.

jimmycrackcorm

sheen1234 wrote:

It's not a simple decision - and in my heart I'd hate to sell the house and do all that to the kids. I'll sooner keep it and pay til I'm 70 and live here. 10-20 years down the line who knows where we could be..

Things will change in the future. Just because it looks like you'll have the mortgage till you're 70 now, like the fact that you are single now does not mean it is always going to be that way. In five or ten years you may be remarried write another income in the household Erich would allow you to bring the mortgage back down and reverse those extra years.

aristotle25 wrote:

They own half of the property. Even a simple thing like inheritance rights would see their half go to their next of kin or whoever they specify in a will. E.g. Maybe their new or future partner etc.

This is your real problem and only a legal solution will fix this. The sooner you act on this the better because your partner at the moment is on the hook for negative equity whereas you could take the hit to get it back into a positive state and she would get the benefit at no risk.

StanleyOllie

I would advise that you take the reduction and term extension for now.
You don't have to pay until you are 70. If your circumstances improve you can make over payments in the future and reduce the term back down.
Your wages may go up. Maintenance will eventually reduce. You may meet someone else who could help you with repayments in the future. You might sell etc.
Sort yourself out for now and give yourself some breathing space and certainty. Review your finances after 24 months and see if you can up payments somewhat. You most likely won't have to burden yourself till 70.
Hope that helps.

brendan86

I agree with some people here extend your years, dont be living struggling day to day to meet ends meet with your mortgage.

Yes your years paying is extended by 17 years but its giving you a extra 300 per month for now. You also have to realise in 20-37 years that 100k extra interest your talking about might and prob will only be worth 30k in todays market with inflation.

In few years you can revaluate your situation, you might meet a new woman and she contributes/You might be on more money with work. So dont stuggle now for the sake of it if mortgage company are letting you reduce your mortgage.

I agree with paying what you can towards a mortgage but you paying 50% your income towards a mortgage is ludicrous. Take what they can offer you now and revaluate in few years.

But make sure get legal advice about taking her off mortgage thats no.1

Just my 2 cents some might agree some may not but all the best.

pilly

OP I would strongly advice you get a separation agreement or divorce sorted before you commit to anything on the mortgage.

50% of your income is huge and a big struggle to go through to have someone coming after you for half the house in years to come.

You need serious legal advice on this.

April 73

I agree with an earlier poster - check out Askaboutmoney and ask for advice there too.

In your shoes I would accept the €300 reduction to allow you to get on top of things now. Worry about the term extension in a year or two. Circumstances change over time & no-one has a crystal ball. You're struggling now so you need the relief now.

I think you are doing the right thing to try to hold on to the house. Selling up & downsizing or renting isn't worth €100-€200 a month. It could easily cost you €10k to sell & buy again. You may not get a big enough mortgage on your own & renting can be precarious.

You also need proper legal advice & to get a separation/divorce finalised. If your partner is working & getting the FIS, Children's Allowance & a back to work allowance I wonder if that financial split is uneven? Don't find yourself in a position in the future where you have worked hard to build up equity in the house only for your ex-partner to be entitled to half.

Best of luck - take the €300 monthly reduction for now & put proper plans in place to tidy up the separation & the finances.

sheen1234

Thanks everyone - the more i think about the situation the more i think ill just have to take the smaller payment and have some form of breathing space. Get myself together, finalise the separation and look to try and plan for the future any pay off more if and when i can.
With my wages at only around 30k, i hope this can only go up over the coming years too with more experience in my area.

I'll speak with my solicitor again tomorrow about the house - his last communication with me on it was that i would have to buy my ex out of the house. So I would have to pay half of the amount we paid on the mortgage - while we were living together. Which would a payment to her in the region of 40k.. I cant even comprehend how this could be paid. There's no way i would get another loan or mortgage of any kind now.

I know if she was still in the house and i had moved out - she most likely wouldn't be forced to pay me the 40k - if anything i would probably be still contributing to the mortgage (I know a guy in a situation like this). I really don't see how this is a possibility with the mortgage hanging over me. Anyway - more discussion material with the solicitor.

I'll look for more advice too, from mabs again, and ill look into finding another finanical advisor. Well worth spending money on experience here looking at the scale of the decision.

Thanks for all the help so far - really appreciate all the advice - helping more than you can imagine.

brendan86

You said your ex didnt want anymore to do with house?

So my port of call would be ringing your bank and discussing what the process would be in removing your ex's name and is it possible to make you sole holder.

Your ex has already agreed for name removal and as you are making payments alone and she no longer lives there you want her name removed so she cant claim down the line.

Find out all details first if they can do it or not, because even if you both want it the mortgage company may not allow it as they will see her as insurance shall you default.

Jurgen Klopp

Fair play man i can understand wanting to stay where you are given its your home place.

Is it possible legally for the ex to sign something to relinquish any future claims that would be the main thing if you plan on staying.

Another thing, take the mortgage extension, yes your paying til 70, maybe. You never know what could happen, you might meet a new partner who want to help pay. You could even have one of kids who wants to take over the remaining payments in future as they might be happy live in the house, loads of things may happen.

An important thing here IMO is if you take the extension and have some breathing room you won't stress yourself, your no good to your kids if you get a heart attack from breaking your balls paying a higher fee than you need to, this in particular is something you should seriously think on.

aristotle25

if you haven't already checked out askaboutmoney.com this kind of situation is discussed many times already, you should get some good pointers and advice.

e.g.

http://www.askaboutmoney.com/forums/issues-arising-from-joint-mortgages.122/