Fixed Term Ending on Half of Mortgage!

MartynH

I am currently in a situation that I don't think can be unique, but which I can't find any advice about, so I would be grateful for any comments from those who have experience or thoughts about it!

In June 2007, I bought a house with my then fianc!e (now wife). We had both previously owned our own flats with fixed term mortgages and I had redeemed mine with Abbey (paying the penalty) a few months before we bought the house. We then sold my fianc!es flat when we bought the house, and took the remainder of the fixed term with Halifax with us. Of course, the house cost more than the flat, so we took out the balance on a new fixed term with Halifax.

I'll call the two halves MortgageA and MortgageB for simplicity, although I know it is really only one mortgage with two different sets of terms applied to the amounts. They are roughly equal...

Now, Mortgage A's fixed term ends in January 2009, whilst Mortgage B's runs to the end of June 2009. I am therefore starting to look at our options. I would like to get the two terms brought together somehow, so that we are in a better position for shopping around, so this narrows my options a bit, I think!

Option 1 - let Mortgage A revert to Halifaxes SVR for 5 months, until we come to the end of Mortgage B's terms. Then shop around...

Option 2 - take out a new fixed term on Mortgage A that ties in with Mortgage B, so that they both end at the same time and we can then shop around. I'm not sure whether this is possible?

Option 3 - see if the Halifax will agree to merge the two together in January(waiving redemption fees on Mortgage and take out a new fixed term on the whole lot (presumably it would have to be with Halifax) so that we can then shop around once this ends.

If anyone thinks there are any other options, please let me know! If you have experienced something similar, I would be very grateful for your advice. I haven't spoken with our Halifax mortgage advisor yet as I want to see what ideas others may have first.

Cheers,

MartynH

poppy10_2

Option 2 is a non-starter - it's unlikely you will get a fixed rate for such a short period, and even if you could the fees would outweigh any savings
Option 3 also sounds unlikely - banks need all the money they can get at the moment, they aren't going to waive fees just for goodwill.

Option 1 may be the only real option.

Trying_to_be_good

Option 1 is the easiest to do, no paperwork to fill in until you come to June 09 and want to remortgage the whole lot.

It's just possible they'll take Option 3 if the new fixed rate for the whole lot is at a higher rate than your current fix for MortgageB - i.e. you'll be paying them more interest than you would otherwise, but I don't think it's likely.

feesh

We've been in the same boat Martyn, due to my partner having an existing mortgage when I met him which was transferred to the new house we bought together, along with a semi-separate "extension" mortgage to cover the rest of the cost of the house.

Part 1 ran out in July and we just bit the bullet and switched to the SVR.

We'll remortgage both parts as a single package once part 2's fixed rate period ends in December.

It's meant a temporary increase in payments, but only £150 or so, so not too bad.

MartynH

Thanks guys! From your comments and a chat I had with a work colleague who has been in a similar position before, I think I will just bite the bullet and cope with the SVR for 5 months. It's actually on the smaller half of the mortgage, anyway, so hopefully won't cost us too much!

Fingers crossed that the mortgage market doesn't get any worse by the middle of next year - I certainly don't expect it to get any better, but at least we'll have paid off a little more or our mortgage by then!