Change of LTV and personal circumstances - advice needed

darrens_here

Bought a house july 2013, at the time my partner was working and we had 2 incomes, so took a 5 year fixed rate interest mortgage in (just my name as she has bad credit history) as I like to know what Im spending, without any surprises.

Fast forward 6 months, and a MASSIVE surprise , she is pregnant. So, baby is not nearly 7 months, and she is not intending to return to work, hence we have only 1 income. Whilst I can afford the mortgage (just) its tight, and doesnt leave much for emergencies or fun !

Since we bought the house, the renovations I have done, and the market have meant the value has risen quite a bit, and LTV rate has dropped to around 71%, compared to the 90% mortgate I took out originally,.


So, advise needed..........
Currently house value 425k, mortgage 300k. Monthly payments £1682, 3 years left on 5 year fixed mortgage, with a 14k penalty.

Ive done some rough calcs, and figure, if I take out a new lower LTV mortgage, I'd say a couple of hundred pound a week, but I'd be out of pocket over the course of the mortgage due to the penalty fee,...... anyone offer any advice?

Foxy-Stoat_3

What is your current lender's SVR?

I would stay as you are as with the £14K ERC it will take you 16 months before you see any real savings and the fact that you know that your total household income will be reducing soon may effect a new offer.

darrens_here

Foxy-Stoat wrote: »

What is your current lender's SVR?

I would stay as you are as with the £14K ERC it will take you 16 months before you see any real savings and the fact that you know that your total household income will be reducing soon may effect a new offer.

Techicnally not, as my mortgage is on my own salary, and that will stay the same, so assume new offer will not have any effect on that, as my partners income was never declared on original either