Construction financing with child support?

Hello everyone!

(Ex-) couple separated a few years ago, the man initially remained responsible for the mortgage to keep the home for the children, the woman stayed there with the children, a new husband joined.

Children (7, 11, 13, 15 years).
According to the agreed divorce settlement, the ex-wife must release her ex-husband from liability for the loan at the end of January, at the end of the 10-year fixed interest period, and wants to continue financing the loan with her new husband at another bank.
She currently receives about €500 parental allowance for a child (6 months) from the new marriage, he earns about €1200 net as a trainee teacher, and she receives maintenance and child benefit for the children from the first marriage, whereby the two older ones live alternatingly.

She is 42, he is 38 years old.

Because 10 years have already been paid off, the single-family house is now worth more than the remaining financing.

Are child support and child benefit even taken into account in mortgage financing?

Many thanks in advance!

Most lenders will not take into account child benefit and maintenance in this situation. It will be a major challenge for you and your new husband to find financing.

The two are as poor as the proverbial church mouse... a seven-member family with an earned income of €1700? Plus child benefits, and maintenance payments in what amount? I have to agree with Hampshire, that will be very, very difficult. Who owns the house? You, or you and the ex-husband? And regarding the Solomon-like remark that after 10 years of repayment, the house is worth more than the outstanding debt: May I ask how much more? If the fixed interest period ends at the end of January, you are also pretty late for such considerations. That’s less than four weeks, and there isn’t even an attempt at refinancing yet? I wouldn’t be able to sleep at night anymore by now...

How long will the new partner still be in the traineeship? As a teacher or lawyer, there is definitely a sufficient salary afterwards. But I also imagine the interim period to be difficult. I understand even less what is going on with your share of the house? Did you give it away? I am currently imagining it to be legally difficult.

Hello,

these considerations are quite late. Child benefit is offset by the child allowance. It is a zero-sum game. Child support is temporary and is not taken into account. It is best to talk to the house bank.

However, I see no possibility here. When will the man be taken on from the legal traineeship into a permanent position and at what salary?

Thank you very much first of all for the previous answers.

The legal clerkship may last until summer, it is not exactly clear. Unfortunately, at 38, almost 39, he is also very late, as he has failed one (or more) exams before. He could have finished long ago – why he has been studying to become a teacher for years, we cannot and do not want to judge.

So, the ex-wife first mentioned the financing on 16.11.2020 and stated that the documents would come soon. Since then, it has practically been postponed every two weeks. Unfortunately, we do not know what is behind this. The last update is from 30.12., stating that the documents should (again) be available within the next two weeks.

Both ex-partners are registered in the land register. During the negotiations back then, it was agreed that she would remain in the family home so as not to take away the children’s home. It was all very complex and the man just wanted to argue as little as possible and separate amicably – it is hard enough as it is. So he contractually left her the house, which she has to finance in her name after the end of the fixed-interest period, and he has so far paid the loan installments and deducted the installments from the total maintenance when transferring money to the ex-wife. In return, he receives/received the multi-family house, which is/is was in joint ownership.
The houses are therefore to be transferred 1/1 solely to the other as soon as she has arranged financing.

Incidentally, she no longer receives spousal maintenance.

I do not want to judge or condemn anyone here – it should be purely about the financing, because this seems really difficult for us in this case, but the ex-wife apparently has the green light and is still waiting for documents?!