Mortgage help - put this on mortgage wanabee by accident

ZoeS_2

Hi

Right here goes....

I have a capital repayment mortgage. There are 2 parts to my mortgage, both with 'halifax', as i moved house and borrowed additional money. They are therefore running on separate rates, etc. The initial mortgage of £99k came out of it's fixed rate (4%) last summer. I was on maternity leave so felt it most sensible to take a fixed rate for 3 years at a rate of 5.99% with Halifax. I also have a further mortgage of £68K on a lower rate of 5.14%, which is due to come to an end in july.

I am totally confused as i am paying £987 per month for the whole lot and am losing money every month. If I come out of the £99K mortgage it will cost me £3000 penalty or £2000 if I come out after October. I will also have a fee if I take out the £68K now instead of leaving it to end in July.

My dilema is this...
a) do I leave everything and in July put the £68k into a tracker for 2 years then I can combine the whole lot when the £99k comes out 2 years later
or
b) do i pull it all out now - pay the penalty and hope the money we save each month will eventually offset the penalty!
or
c) when the £68k comes out in july I pull out the £99k and pay the penalty and combine the 2 sums of money on a tracker - again hoping the interest rates stay low enough for me to recoup the penalty

My other dilema is.... if they keep running at different times i will have to pay admin fees (£999) with the halifax each time the morgage comes to and end. i paid £999 last year and will have to pay it again this year!!

I hope this makes sense...any advice you can give or any suggestions would be great!

We have ended up paying an extra £150pm since the £99k moved onto the higher interest rate (was 4% before) and I have been on mat leave so have been living off savings. This has equated to an extra £1500 over the course of my time off resulting in our savings dwindling down to nothing.

Due to the increase in our council tax, mortgage, gas and electricity I now have to return to work 4 days per week instead of 3, which is what i initially hoped to do! These things happen but if i can save money anywhere it will make our lives a lot easier!

thanks

Robert_Sterling_3

You might consider this:- When one mortgage runs out let it move to the SVR rate ( No arrangement fee I think ) then wait for the other to run out and go to the SVR rate then move both at once to wherever. I have not done the sums myself but at first sight it looks worth considering.