Mortgage and job loss

codriver

We currently have a large mortgage and my wife is being made redundant at the end of August. Despite her best efforts she has been unable to find herself a job so we spoke to our mortgage company to see if they could help us out. The only help they could provide us with was to make half payments for two months.

We have now decided that we need to sell the house as we can't afford the mortgage as a last resort but I'm wondering if anyone can point me in the direction of any other solutions.

Thank you.

Joe_Bloggs

@codriver
Welcome to the MSE forum. I'm sorry to hear that news.
Can you pay interest only for a longer period on the mortgage ? It must be difficult to get another job when you still have to turn up at the old one. Is 'temping' an option. There are lots of money saving tips throughout this site that could stretch a reduced budget further.
Selling a property and buying another can be expensive, time consuming and can fall through. Will non mortgage debts become a factor ? Consider the budgeting methods and tips employed by those in debt on the debt-free wannabe board to keep expenditure to a minimum.
J_B.

regularsaver1

did you have any insurance for unemployment?

cattie

Is it possible for you to rent a room, to a student or two perhaps, to help out untill your wife finds employment? This is something that once helped me to pay the mortgage when I hit a really rough patch.

Or as Joe Bloggs suggests, ask about changing to an interest only mortgage for a while. If this isn't an option, perhaps extend the term of your mortgage to give you lower monthly payments.

Good luck anyway.

MortgageMamma

I wouldnt put your property up for sale just yet, you have done the right thing approaching your lender and explaining the situation before it becomes a problem. Accept the two months on half payments and the go back and explain again that there is still a problem, under Financial Services Authority regulations your lender has to bend over backwards to avoid a reposession, and if it ever goes to court they would have to evidence very clearly to the judge all communication and steps taken to avoid the reposession.

A bit of advice

1. Keep communications open wiht your lender as much as possible, but do EVERYTHING and insist all arrangements an confirmed in writing

2. Stick to your payment arrangements as best you can, if things get too tough notify your lender in advance of any non payment

3. You probably know this, but with the exception of food and essentials prioritise your mortgage payments above all else. if you have kids your utilities can't get cut off

4, think about taking a second job yourself if your wife can't find one, as a couple you can rearrange domestic things so that one takes all the responsibility

5. http://www.fsa.gov.uk/consumer/consumer_publications/index.html - go down to the mortgages section, there is a guide called what to do if you can't pay your mortgage. you lender is meant to send you a copy within 7 days of you going into arrears. if they havent given it to you already this might help

Good luck and keep posting for advice if you need to

Careful_girl

I had the same thing happen in September. Oh has not got a job and we cannot afford the mortgage here. I went to my lender HSBC and they wouldn't do anything useful. They did suggest that I could pay interest only BUT they said that although they would accept this, officially (on my credit record) it would be seen as a default on the mortgage. I tried my utmost to persuade them and there was too much chance of my credit rating being effected. Also I could not guarentee when OH would get a job.
I put a plan in place that we would put the house on the market at a certain time to give us enough time to sell and keep up the repayments with his redundancy pay. I would be mindful of how unpredictable house selling is and how long it can take. I said to a devastated Oh that if he got a job the day before exchange we could still pull out. Just gave me piece of mind.
The mama says that the FSA will do their best to protect you and she knows more than me. I just wanted to be in control of protecting my OH and family. If your OH would get a temporary job whilst she looks for the next real one it might help. The site has loads of moneysaving ideas and the people on here can help you cut your costs. I tried very hard to afford the house on my own salary with a new mortgage but wasn't successful. However you might be and it is worth checking. Hassle the people on here. They need to be kept busy otherwise they all start arguing!!!!!!!!!:p
We are moving next week!:eek:
All the very best,
CG.

MortgageMamma

Hassle the people on here. They need to be kept busy otherwise they all start arguing!!!!!!!!!:p
We are moving next week!:eek:
All the very best,
CG.[/QUOTE]

I nearly fell of my chair laughing at that CG. - thanks!

Good luck with your move chick, I hear that AndrewSmiths done a fantastic job looking after you. He's a lovely guy isnt he I know him well.

MM

Careful_girl

The mama is right again. :eek: Andrew Smith has been the voice of reason and experience (how boring) and has not let me pay for a house that would have been 10x my salary (I tried to persuade him though). He has nontheless negotiated a very competitive rate (called in some favours perhaps has links with the Mafia) and was scarily efficient (Does the man never sleep?) and advised on a variety of financial products.
However I do not want to boost his ego further or he might mention his THANK RATE. Again. (Currently 47% But some of us are 43% already.)
Sorry off to advise people on behaviour of children and expect thanks for it.
MM you are meant to be helping this person save money. Andrew will try to make their money grow on trees but I think that involves his mafia connections!!!!!
Much Love, (there is a post report party going on)
CG. (Celebrating Girl):beer:

AndrewSmith

Careful_girl wrote:

The mama is right again. :eek: Andrew Smith has been the voice of reason and experience (how boring) and has not let me pay for a house that would have been 10x my salary (I tried to persuade him though). He has nontheless negotiated a very competitive rate (called in some favours perhaps has links with the Mafia) and was scarily efficient (Does the man never sleep?) and advised on a variety of financial products.
However I do not want to boost his ego further or he might mention his THANK RATE. Again. (Currently 47% But some of us are 43% already.)
Sorry off to advise people on behaviour of children and expect thanks for it.
MM you are meant to be helping this person save money. Andrew will try to make their money grow on trees but I think that involves his mafia connections!!!!!
Much Love, (there is a post report party going on)
CG. (Celebrating Girl):beer:

Well, once again thank you for your very kind words. It is a 2 way street however and has only been as sucessful as it has because of the type of client you have been and that you have been prepared to listen and consider all avenues and suggestions. :T

At the end of the day CG all the ideas came from you, I am merely the tool that is used to implement them for you. It has been and will continue to be a pleasure dealing with you and Christian. :beer:

Now then, back to this 'thanks rate', it's actually 47.58% not that I am at all analytical. I am proud of it though. It just goes to prove that you don't have to be in London or even the Country, but somewhere in between to give good advice and have happy humans as clients.

Oh and one more thing CG, 'where's my invite to the party?' :rotfl: :T

Thanks CG and MM for your kind words. Blushing now (yeah rite) :beer:

Must dash, have an agreement in principle for a client to do.

Careful_girl

Must of burned it along with other stuff;)
Sorry have to go too have a small amount of packing and a promotion to get.
Have fun in the sun,
CG.:beer:

MortgageMamma

Careful_girl wrote:

The mama is right again. :eek: Andrew Smith has been the voice of reason and experience (how boring) and has not let me pay for a house that would have been 10x my salary (I tried to persuade him though). He has nontheless negotiated a very competitive rate (called in some favours perhaps has links with the Mafia) and was scarily efficient (Does the man never sleep?) and advised on a variety of financial products.
However I do not want to boost his ego further or he might mention his THANK RATE. Again. (Currently 47% But some of us are 43% already.)
Sorry off to advise people on behaviour of children and expect thanks for it.
MM you are meant to be helping this person save money. Andrew will try to make their money grow on trees but I think that involves his mafia connections!!!!!
Much Love, (there is a post report party going on)
CG. (Celebrating Girl):beer:

No he never sleeps, he tells me he survives on about 3-4 hours a night for six weeks then spends a fortnight cabbaging bless him.

Glad he's sorted you out, I wouldnt be anywhere near as good as I am at my job if it wasnt for being under Andrews wing for a while. Some of my broker friends and IFA's who have been qualified much longer than my call me up to help THEM place cases now!

you;ve got a good one there CG, worth holding onto.

And don't listen to andrews rants about going red, impossible to embarass this man as he doens't know the word modest LMAO :rotfl: