How to reduce difficult mortgage repayments?

SabNys

Assume that a divorce settlement is ongoing. For simplicity, assume a 50-50 split of assets.

The house and mortgage are both in the husband's name only. Mortgage will expire on husband's retirement date.

Both parties are considering that the wife could take over the mortgage and therefore keep the house.

At present, the wife would struggle to meet the current mortgage payments. There might be two possible ways to reduce the wife's monthly payments:

- The husband is 10 years older than the wife. So, the mortgage might be extended by the difference in their retirement ages.

- Someone might "gift" a lump sum to reduce the monthly payments. The gifter is too old to act as a future guarantor of repayments.

Question 1: Does a third-party contribution become part of the joint assets, so that the husband can immediately claim half of it?

Question 2: Is there any formula that can be used to calculate the reduced monthly payments to take account of (a) extended final date, and (b) a "one off" lump sum?

getmore4less

Any mortgage calculator can do the numbers.

Simple one
http://www.whatsthecost.com/mortgage.aspx


A gift can be retained won't form part of any settlement.

SabNys

@getmore4less: That looks easy. Thanks.

I'm assuming that we only need to do the following:

- Find out the outstanding balance at this instant.
- Subtract the lump sum.
- Treat as a new mortgage.
- Shop around.
- Factor in the mortgage provider's fees and solicitor's fees?

Anything else ? (I've long forgotten that such things as mortgages actually exist.)