Hello(posted 8553 days ago)Sorry to hear about your problems. I would suggest that you see your local council housing office about rehousing first (and any housing associations in your area). I know they can be funny about homeowners moving into council accommodation, and if you sell your home they may consider that you're making yourself intentionally homeless.
You'll get a visit from the housing officer to discuss your situation. They'll put you in a "grade". Grade A being a priority case. I believe though that housing associations are less bureaucratic and you may have more luck there.
Also have a word with your social worker/midwife/district nurse, the fact that you have a young baby and have housing difficulties will make a difference and you may find that you'll get rehoused a lot easier with their help.
If you take out another mortgage, most lenders are happy to waive the penalities if you take out another product with them, if you don't then you have to pay the lock-in fees. But there is no harm in talking to them and see what they say, you're in somewhat different circumstances to others, you may find they are sympathetic, but anything they do agree to, make sure its in writing.
There's a lot of people you need to speak to, and you should do so as soon as possible, once you have some answer's you'll be able to see your possible options.