Struggling to pay the mortgage soon...advice please..

MONDYMAN_3

Hi all , i was made redundant in February after 20 years with a Big multi - national company . Most of my redundancy has paid off my families credit cards and loans and im left with a small ammount to tide me over.
My wife works part - time and we have 2 children ages 3 and 8 so i've had to claim tax credits.
I'm currently re-training as fast as i bloody can with Careers Wales but its going to be at least 5 months till i finish and then theres no guarantee of a job.
Here's the crunch...we are being really tight with our outgoings , but the cost of living is slowly but surely going to cripple us sometime in the next 6 months...
If i ring my mortgage company ( Principality ) what can i expect from them....i'm a bit reluctant as i know banks are ruthless and i just dont want to tell them i could be struggling to pay them in the near future as i've never missed a payment in 11 years ...my mortgage is only £40k on a house worth approx £110k .
Anyone have any experience of this scenario...what can i expect from them....i'm getting to the point where the worry is starting to make me a little anxious ( and im a grown bloke and i'm not afraid to admit it either ) to say the least...
Any advice much appreciated...Thanks all

Gorgeous_George

You could try to remortgage at a lower rate or over a longer term.

The mortgage should be paid first. Before broadband, mobile phones, beer and fags. The DFW Forum could be a good place to visit. Try entitledto dot com. to make sure you are getting all the help that you can. You could take a lodger or make the wife work longer hours

Good luck.

GG

Edale

Ask them to switch to interest only if it is not already. This will preserve cash for as long as possible.

MONDYMAN_3

Just got off the phone with them..they were really good...im actually surprised at what they offered and mightily relieved for my families future..

The basic gist was a 3 month payment holiday followed by a term defined by me on interest only ( as ive only got 15 yrs left on mortgage and im only 37 they said obviously it couldn't be hugely long term but 2 years no problem which means a hell of a lot in security terms for us.

Thanks for the replies , one relieved homeowner.

blueberrypie

MONDYMAN wrote: »

Just got off the phone with them..they were really good...im actually surprised at what they offered and mightily relieved for my families future..

The basic gist was a 3 month payment holiday followed by a term defined by me on interest only ( as ive only got 15 yrs left on mortgage and im only 37 they said obviously it couldn't be hugely long term but 2 years no problem which means a hell of a lot in security terms for us.

Just bear in mind that some mortgage providers report mortgage holidays as arrears, and that could affect any future credit (even including remortgaging with your current provider).

Also remember that the three payments you don't make are going to accrue interest for the next 15 years. I would try very hard to avoid the payment holiday.

If you haven't already done so, have a look at the Debt-Free Wannabe board - there are so many ways that people have reduced their outgoings, it's likely you'll find something helpful there.