How much contingency should I have to cover mortgage if I lose my job?

ahfh1

Hi,

If the worst ever happens and I come to lose my job, how much contingency should I save to cover my mortgage?

I've heard some people say that ideally you should have enough savings to cover 6 months worth of mortgage repayments. What do you guys think?

Thanks

jdturk

ahfh1 wrote: »

Hi,

If the worst ever happens and I come to lose my job, how much contingency should I save to cover my mortgage?

I've heard some people say that ideally you should have enough savings to cover 6 months worth of mortgage repayments. What do you guys think?

Thanks

It should be 6 months of your minimal costs (ie council tax etc) IMO but hardly anyone has this so anywhere near this is always good!

getmore4less

How long do you think it wil take to get a job?

Double it and have enough to cover all spends.

If this is over the level where you would qualify for means tested benifits then think about a bit less an other options till you can save well over that limit.

Remember that once you have near instant access cash for a few months the rest can be in longer term saving options.

I built up a 5 year contingency fund snce I would not have been able to get benifits for other reasons.