Mortgage in 2 parts - help

hairbrain05

Hello,

We currently have a 2 part mortgage with Halifax which we got when my husband & I got together, I ported my existing mortgage and there is an additional part for when we bought the house together.

We didn't really realise the implications at the time & we got the deal when rates were sky high.

Based on the below would anyone suggest that moving the entire mortgage, both parts, and paying the ERC for Part 1 would be worthwile? Part 2 expires in Sept so we are looking for deal for then.

Our house is valued at 158k and current outstanding amount is 135500.

The first part was for £60,685 fixed until 31/1/14 at 7.24% at £419.61 per month.

The second part was for £76,314 fixed until 30/9/11 at 6.44% at £488.28 per month.

Early repayment charge - part 1 - £1,820

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getmore4less

With LTV over 85% you are going to struggle to find good deals.


What rate do they both go onto when the fix finish?

hairbrain05

getmore4less wrote: »

With LTV over 85% you are going to struggle to find good deals.


What rate do they both go onto when the fix finish?

sorry i don't actually know yet - waiting for broker to let me know

we also hoped to increase our borrowing to fund some car repairs etc but it's looking like thats not an option?

hairbrain05

bumping in hope of advice!

getmore4less

Get your paperwork out you should be able to find these numbers yourself.

which lender might give us a bit of a clue at least to the SVR but yours might be tracker followons.


Also looking at the numbers looks like you have 30y loans so were probably stretched.



we also hoped to increase our borrowing to fund some car repairs etc

Ok I think you need to review your finances, cars should be budgeted for and NOT be expences you are putting onto a mortgage.

If not done allready start with a SOA

http://www.makesenseofcards.co.uk/soacalc.html

I think you need to review your priorities

If lucky you might have good rates as followon which will help.

But with no funds?, an ERC and fees to add to the loan and allready over 85% I think you will struggle to find very good rates to replace what you have.

Any other debts?

getmore4less

Get your paperwork out you should be able to find these numbers yourself.

which lender might give us a bit of a clue at least to the SVR but yours might be tracker followons.


Also looking at the numbers looks like you have 30y loans so were probably stretched.



we also hoped to increase our borrowing to fund some car repairs etc

Ok I think you need to review your finances, cars should be budgeted for and NOT be expences you are putting onto a mortgage.

If not done allready start with a SOA

http://www.makesenseofcards.co.uk/soacalc.html

I think you need to review your priorities

If lucky you might have good rates as followon which will help.

But with no funds?, an ERC and fees to add to the loan and allready over 85% I think you will struggle to find very good rates to replace what you have.

Any other debts?

hairbrain05

lender is the Halifax

yes we have other debts mostly credits cards approx 5k in total, but nothing in arrears, what we really wanted to do was pay these off & also get the car repairs done, so about 6k increase - however i'm reading that consolidation isnt good idea right now?

We know car repairs should be budgeted for etc etc etc but our current situation is not allowing us to save anything at all & we are really trying to do the best thing.

getmore4less

Time for a SOA and a trip to debtfreewanabee.

you are talking about more than consolidation you are taking on more debt.

A full analysis is needed and a proper plan that include looking at spending cuts, increaseing income and reduction of finance costs.

You won't solve this with refinancing.


how much has the debt changed(up or down)in the last 12months?

If you don't know then you need to find out so you know it is not going up in the next 12 months.

hairbrain05

we have done that - we know or outgoings exactly & whilst we are able to cover everything it just doesnt' leave much for saving etc

the debt has increased approx 1k over the last yr if thats what you mean

getmore4less

hairbrain05 wrote: »

we have done that - we know or outgoings exactly & whilst we are able to cover everything it just doesnt' leave much for saving etc

the debt has increased approx 1k over the last yr if thats what you mean

Thats the point you are not covering everything you are overspending by £1k per year and that will get worse unless you do something.

You need to review your spends and start cutting back urgently

Since you have all the figures why not post a SOA and see what others think there may be things you missed or ideas you have not thought of.

hairbrain05

getmore4less wrote: »

Thats the point you are not covering everything you are overspending by £1k per year and that will get worse unless you do something.

You need to review your spends and start cutting back urgently

Since you have all the figures why not post a SOA and see what others think there may be things you missed or ideas you have not thought of.

i just had a look in the debt free wannabe area & was just about to post it! guessing it best to post it there in dfw?