Interest-only mortage. Unemployed

plegilink

Hi

I was wondering if anyone could give me advise relating to my mortgage and outstanding loan and how this or my credit rating might be affected if I wish to claim unemploymant allowance.

I took a £30000+ loan while employed to invest in business/property. I was made redundant very shortly thereafter and have decided to hold off investing until I find new employment. I am an IT Manager and have been looking since the end of February. I have been hesitant to approach the local benefits office, for fear of how this could (if at all) affect my credit rating. I am also been "living off" part of the loan at present and wondered if I registered with the benefits office, would the loan lender become aware and how would they possibly react?

Many thanks

Joe_Bloggs

Try your local citizens advice bureau. You seem to be burning the candle at both ends. Perhaps return the money after impartial and confidential advice from those who can advise you and negotiate for you.
J_B.

trackaccessgirl

You would be better off repaying the loan and getting benefits until you get a new job. The benefits won't affect your credit rating. The only thing that would affect your credit rating would be not repaying back the loan on time because any late or missed payment would be recorded.
Don''t be tempted to live off the loan, money like that would just disappear and what would you have to show for it.
I would look for a job in your field even if it is slightly lower paid/level than you are capable of, and if you get one keep looking for a better one. That way you will keep up to date.
It is unlikely that the loan company would find out, BUT you are obliged to tell them under the terms and conditions. There are many courses of action they could take if they "found" out. Demand money back, increase interest rate, or simply write you a formal letter.
Unemployment benefit might be a lot less money than you are used to, and though housing benefit can be payable to those with a mortgage, it does not kick in for ages and will only pay the interest when it does.