Help! Redundant with a huge mortgage and savings in Icelandic banks!

ExpertBargainHunter_2

Yesterday I was made redundant (extremely corruptly but that's another post) and to make matters worse I discovered that instead of the £6000k redundancy pay I expected, I'll only get £2000 as the 6 weeks statutory redundancy I am entitled to is CAPPED TO £330 PER WEEK!! Another kick in the teeth from the government, protecting corrupt business over humans. So here I am with a monthly mortgage payment of £1000; I'll get a months pay of £2800 then £2000 untaxed redundancy. I am unlikely to get another job soon because I live in London and a load of City people have just been dumped into the job market, so lots of competition and few vacancies.

I have £3600 in an HSBC ISA, £3000 in an Icesave ISA and £5000 instant access savings with Kaupthing Edge. HELP! What should I do? I've just logged into my Kaupthing Edge savings and seem to be getting 6.5%, which is great! I've read the guide on here and that seems to be the highest for instant access. Should I just leave it there as it's with ING now? As for my Icesave, should I transfer it into another ISA or put it into a savings account in case I don't get another job in time? I can't really think straight at the moment and don't trust my judgement.

Thanks for any help.

bonsoirbonsoir

Sorry to hear this bad news.

Can I ask what you did as a job?

ExpertBargainHunter_2

bonsoirbonsoir wrote: »

Sorry to hear this bad news.

Can I ask what you did as a job?

Surveyor. Predictable eh?

bonsoirbonsoir

Regarding your savings, personally, those currently in an ISA - I would leave where they are as long as you have instant access.

Those that aren't in an ISA (such as the ICESAVE) put in an instant access savings account.

You may lose out on some interest / tax, but as your savings are relatively low in relation to your expenditure I'd say your most immediate problem is cashflow.

Once you get another job, think about more long term issues then, currently, worry about the present.

bonsoirbonsoir

bonsoirbonsoir wrote: »

Sorry to hear this bad news.

Can I ask what you did as a job?

One bit of advice I was given once is 'any port in a storm'. Meaning, if money's tight, get a job in a supermarket or a bar if necessary. I know very successful people who took these sort of jobs in the short term during leaner periods.

No disrespect to people who currently work in bars or supermarkets by the way! I'm just saying that as a professional, don't be too worried about doing unprofessional jobs - paying the bills is the most important thing here, in my opinion.

ExpertBargainHunter_2

bonsoirbonsoir wrote: »

One bit of advice I was given once is 'any port in a storm'. Meaning, if money's tight, get a job in a supermarket or a bar if necessary.....

Thanks again for all your advice, it's very sweet of you. I've actually decided to leave surveying, the 'profession' is a complete joke - I was made redundant even though I'd been promoted to Associate 5 months ago, was the longest server in the office and did the best quality work, simply because I'm female and because I refused to compromise on quality to get better figures.

I'm looking for admin jobs or preferably something in the public sector relating to regeneration/transport. It'll only just pay the bills but it really doesn't matter to me, I agree with everything you said.

opinions4u

While jobseekers allowance, tax credits and income support for mortgage interest aren't an appealing option, make sure you get out of the system what you're entitled to in your time of need.

Good luck!

PZH

ExpertBargainHunter wrote: »

Yesterday I was made redundant... So here I am with a monthly mortgage payment of £1000; I'll get a months pay of £2800 then £2000 untaxed redundancy. I am unlikely to get another job soon because I live in London and a load of City people have just been dumped into the job market, so lots of competition and few vacancies.

Talk to your mortgage provider and explain the situation, they are there to help you ( They want their money rather than a house ) - don't leave it till the last minute. They may suggest ways to help in your situation.

Also talk to any other people that you may have debts with and explain the situation to them as well.

If all goes well then you'll get another job quickly ( And I hope you do ) - but if not, at least you have forewarned them.

ExpertBargainHunter_2

opinions4u wrote: »

While jobseekers allowance, tax credits and income support for mortgage interest aren't an appealing option, make sure you get out of the system what you're entitled to in your time of need.

Good luck!

Thanks for this; I didn't think I'd be entitled to anything because of my savings but it looks like I can get my WHOLE £60pw jobseekers as it's contributions-based.

Unfortunately the mortgage interest thing is after 39 weeks - I'll be reposessed already if I haven't got a job by then! Apparently in April 2009 they're changing it to 13 week and raising the amount - why the hell are they waiting til then when thousands of people are being made redundant NOW?!

By tax credits do you mean a tax refund? I was a 40% taxpayer so I guess it might be possible I will have overpaid for this tax year - that would help! Or is tax credits the thing if you have kids? I don't, thank god!

Thanks again for your post, very helpful

ExpertBargainHunter_2

phoodless wrote: »

Talk to your mortgage provider and explain the situation, they are there to help you...

Thank you, I plan to wait til a month after my gardening leave is over (so 2 months from now) and if I don't have a temp job by then I'll contact them. I don't want to spook them unnecessarily and wreck my credit rating!

SouthCoast

Citizens Advice Guide on redundancy:

http://www.adviceguide.org.uk/index/life/employment/redundancy.htm