bednobs
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(Fri 12:32 26/Jun/09)
there is no one answer to your question, what is right for one person might not be right for another. Will paying off a lump sum reduce the amounts, or just the time they owe it over? If the amount is going to be the same, and they wont have enough income per month to cover it then they will be in trouble.
To me, it makes sense to reduce your debts with a pay off,b ut there wouls certainly be a part of me that would want to spen spend spen, or at the very least have a nice holiday.
Incidentally, how lovely of his wife to give him an ultimatum like that at this stressful time!
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sandmaster
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(Fri 14:39 26/Jun/09)
I agree with bednobs - but there is also another consideration. If your friend has savings it may reduce any state benefits he is entitled to. By reducing his mortgage he will avoid this.
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another-view
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(Fri 14:41 26/Jun/09)
Advice? Sure. Ditch the missus. What a b1tch.
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LatinaLover
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(Fri 14:42 26/Jun/09)
Advice? Sure. Ditch the missus. What a b1tch.
And then blow the money on beer,women and gambling?
I LIKE IT!
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CheekyChops
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(Fri 22:00 26/Jun/09)
If they get divorced, she will probably be entitled to half of it anyway :-(
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annie0000
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(Fri 23:10 26/Jun/09)
So many other factors involved:
What type of mortgage he has - some may not allow him to pay off such a large chunk without applying a penalty.
Once he has paid it in, if he nedds it he will be unlikely to get it back
What other income does he have coming in to pay bills etc - does he have another job lined up
Does he need Capital for another purpose
Does he have other debts on higher interest rates
Does he have any redundancy cover on his mortgage
Will he have to claim benefits
Until all these questions are gone through, who knows if it the best thing to do.
His best bet would be sitting down with his wife and discussing both the practical and emotional aspects to this - she may not be a bitch,just very worried about how they are going to manage.
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dot.haukes
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(Fri 23:16 26/Jun/09)
He must sign on as umenployed immediatley and check his policy for payment protection, that probably would only kick in after several months, his beast bet is to keep up the payments to maintain a good credit history, how long has he worked for the comopany and how old is he? i have the calculation here on statutary rediindancy. the most he would get is �350 per week anyway under a statutary settlement. what sector is he in, in some sectors like education or medicine his entire carer years in the same sector can count and he can negotiate a severence. get his firm to pay his redundancy with his notice to avoid tax on the notice
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dance2trance
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(Sat 02:45 27/Jun/09)
Question Author
Thanks everybody you have been kind and helpful.
Anniie0000 has it nailed. All these factors have been put to them and worry on her part is a serious concern. Plus the points on savings and benefits entitlement - but I am not privy to all the ins and outs of their situation. Advice was requested and given but it looks like its been discounted. The ultimatum is now full effect. I am just going to keep away from the fall out. Thanks again..
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tamborine
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(Sat 03:02 27/Jun/09)
He should hide the redundancy monies or puchase an offshore property unbeknown to her. If he has a variable mortgage tis best to leave it. Paying off mortgages early still cost all the interest that would have accrued at full time.
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flobadob
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(Sat 03:19 27/Jun/09)
That wife sounds business orientated and fair play.
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Twenty20
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(Sat 11:16 27/Jun/09)
I've never heard of 'failure to pay off the mortgage' as grounds for divorce before!!
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annie0000
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(Sat 11:37 27/Jun/09)
no so tambourine - depends on the type of mortgage - many mortgages now offer an amount of overpayment to be made with savings to be made on interest applied. You also have flexible mortgages which allow you to do pretty much anything without penalty (my personal choice) or ofset mortgages.
My flexible choice is on standard variable rate, but technically has 19 years left to run but because I overpay, will be finished in the next 3 years. Becasue I am reducing the amount borrowed, the amount of interest applied is reduced every month and so my payments pay more of the capital and there is no penalty applied.
d2t - I hope they get it all sorted out, I would recommend keeping back a minimum of 3 months outgoing sto give them a cushion while he is looking for another job. If he can then repay a chunk off the mortgage without penalty then that may keep them both happy.
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CovKid
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(Sat 23:15 27/Jun/09)
I might be repeating what someone else has said. Does she really mean, pay off the mortgage and THEN
I'll divorce you? That way if she gets half of the house equity she gets more. If she's serious, time to get out. Hide the money where she can't get at it,
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dance2trance
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(Sun 17:33 28/Jun/09)
Question Author
Covkid You might well be right and I have pointed this out. Down to them now to sort it all out.
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