mortgage advice required please!

chappers

If there is an ERC involved then I would definitely hold fire unless the ERC will be less than the interest you will pay over the remaining time of the fixed period.After your two year fix are you free to over pay or are you still tied into the 10% overpayment. If so then there is another variable to factor in and that is any fees you may pay to switch to a mortgage with unlimited overpayments and also the possibility of what the rates might be by then.
Also it could all depend upon your employment position if you take a 505 drop in salary will you be able to remortgage at the level you are at now.
Also you say you may have a 50% salary drop can you survive ok on that or is it essential that you get your monthly payments down.
However it appears, though you have been made redundant, the choices you have to make are what I would call pleasant ones i.e how to maximise your money and not how to cut back and survive.
As I said you have so many variables I would seriously see if anyone you know can reccomend and IFA to you, he maybe able to give your current investments a makeover too and maybe squeeze a bit more from what you already have

Conrad

I would perspnally use it to snap up a property bargain in the nxt few months as the credit cruch bites deep, then sell on when things improve having let it in the meantime.

Remember, smart investors buy when no one else is, but get nervous when everyone else is buying. The less smart wait until the crowd has moved and pile in too late. Do not of course by in Dubai - thats real tail end charlie territory - the smart investors got in years ago.