All happening at once. Please advise

Olderbutnotwiser

Hi,
Here is some background.
I live in a house currently worth £250k, the outstanding mortgage is £100k it is locked in at 5.25% until May. There is about 10 years left on the term.
I have a lot of debt (see signature:eek:) and my husband is being made redundant.
He is being Tuped to another company in June then could possibly work for them for 3-6 months before being released. He will get a settlement of approx £40k.
I work full time and earn 22kpa. OH will continue on 50k until the bitter end.
Do I start trying to remortgage now?
Tell them about the job loss?
See if we can extend the term to 20 years so we can manage?
Find out what Halifax will offer after May and just go with it until OH loses his job and then negotiate?
Try for a longer term variable now using saving to kill other debt (which will eventually go with the redundancy)?
Obviously a £1k monthly mortgage repayment is not viable on my salary.
I'm not sure what to do, any suggestions on who best to talk to etc???
THanks for reading:o

herbiesjp

There are a lot of things to take into account here.

However, your first port of call will be Halifax to see what they will offer

You can do this 3 months before your current deal expires, so you are inside this timescale

Your outstanding debt is very big, and will pretty much negate any re-mortgage you could get on your own income.

As long as you are not increasing your borrowing, Halifax will just offer you a new deal to switch on to.

Your best bet would be to talk to a whole of market mortgage adviser who could look at Halifax's current deals for you (along with any exclusives they get from them) and then compare against any other deals you may get (if any) based on your circumstances

Forever_Red

Olderbutnotwiser wrote: »

Hi,
I have a lot of debt (see signature:eek:) and my husband is being made redundant.
He is being Tuped to another company in June then could possibly work for them for 3-6 months before being released. He will get a settlement of approx £40k.

If your OH is being Tupe'd to another company, then he isn't being made redundant. He should transfer over with the same pay and conditions that he is getting now (apart from a comparable pension if he is on a final salary one). Why would he be Tupe'd over, only to be made redundant? Would it not be better to stay with the new company?

Alan

Olderbutnotwiser

Thanks for your advice, I'll see what Halifax say, is it worth trying to change the term now? And I will call a whole of market broker ASAP too then.

OH is being Tupe'd on same salary conditions and redundancy package but he has been told they only need him until they know what they are doing (his job has been out scourced to India but they want a hand over period) then he will be made redundant, possibly in October. I don't think staying long term with new company is even on offer... plus the commute would be hell:rolleyes:. Is this abnormal practise?

Forever_Red

As long as the redundancy he will get from the Tupe'd company is the same as he would have got if he was made redundant with his current company.

Hope everything works out ok for you.

Alan

dimbo61

Right first it not worth paying ERC to leave your existing deal and its only 2 months until may.
If you and OH are under 45 I think you can extend your term to say 20 years.
If you clear all your debts with your OH redundancy money you will only have a £100,000 mortgage.
Now the SVR of the Halifax is currently 3.5% so your mortgage would go down in May
Halifax are offering fixed rate deals of 3yr 4.44% fee £999
" " " " 4yr 4.29% fee £999
" " " " 5yr 4.44% fee £999
If you have a mortgage of £101,000 over 20 years the cost on these deals would be about £627/£636 a month and you would have security for 3/4/5 years and if things get better you can overpay or reduce the term back down to 10 years ( for a fee of about £25/50 )
WHY do you want a variable rate mortgage ? Rates are very low and the only way is up !
A long term fix of say 5 years gives you security and you can afford to pay the mortgage on your income alone.
Ask the Halifax to give you the new fixed rate deal fee free ( tell them about the A&L 5 year deal thats fee free and cheaper 3.99%) but stick with the Halifax as OH job not safe GOOD LUCK