Help Requested Working Out the Sums .. please x

smileypigface

I'm going round in circles trying to work out what to do for the best regarding my current mortgage.

I have a mortgage with Accord fixed at quite a high rate - I thought I was stuck with what I have as I had a baby last May and hoped to be off work for 5 years in total. However, my employer has undergone many changes in the 11 months I've been off and are no longer able to offer me the further 4 years off - so I go back to work at the beginning of June.

The mortgage is just in my name (my husband still owned a house when I bought this one and therefore already had a mortgage in his name) - however, we are now married and have sold his house and live together in 'my' house. We therefore intend to add his name to the mortgage at some point soon - either by a transfer of equity to the current mortgage or on re-mortgage.

So, the total lending is (as at the last statement Dec 10) -

£103,090.66 - end of term 25 Aug 2032 - fixed at 5.89% to 31 May 2013

and

£28,999.07 - end of term 25 Aug 2032 - fixed at 4.59% to 31 Aug 2011

When the small portion of the mortgage reaches the end of it's fixed period in August it will revert to the SVR - currently 5.99%.

Putting our joint incomes into the Accord website affordability checker it appears they will be unwilling to offer us a new product - my income has reduced considerably since I took out the mortgage (I was working abroad for my employer on considerable allowances) and we have since put a new kitchen and new car on 0% deals.

It does, however, appear that we could be suitable for a First Direct Offset Mortgage on our current financial situation - offsetting is the way I think we want to go.

The redemption penalty for each part of our mortgage is as follows:

for the smaller part - £1,159.96
for the larger - £5,304.35

These penalties are fixed - they are not reducing over time.

I'm having trouble working out whether we would be better off financially redeeming in August and going onto an offset mortgage elsewhere or sticking it out until the redemption penalty period is over?

Any help/guidance to working out the sums would be greatly appreciated.

Many thanks.

originalmiscellany

Obvious things to say are:
Off the website:
Joint applicants must either have a minimum combined salary of £50,000, or one party have an individual salary of £30,000 or more
http://mortgages.firstdirect.com/calculators/compare-calc

What is the value of your property? The good rates are only there if you have a decent LTV, although it will certainly be lower than 6% - ugh.

I can't work out the figures for you as well It's complicated when you work out the early redemption fees etc - but I wish you well in what will be a tricky situation.

smileypigface

Thank you for replying x

Myself and hubby both work for the same employer on just over £35,000 each (both the same level) - my husband gets overtime too (at the moment but it probably won't last much longer!)

Purchase price of house in Aug 09 was £235,000 - we have recently extended the house and our approximation for new value is £245,000 so LTV is just over 50%.

Thanks again.