Worried about mortgage/redundancy -had an idea - is it possible?

libbydim

Just made redundant - about £9K in the bank. £100K mortgage - interest only. Lost life insurance cover along with job. I am 58 frantically looking for work which realisitically will not come. Flat has been on market 4 months, have just reduced price by £10K - no offers yet.
I'm thinking of using my capital to put a deposit and rent a house and move before the money runs out.
If I just stop paying the mortgage what will happen? May be better for sale if empty. If I don't do this the Money will only last me 6 months then I'll be penniless. As far as I am concerned the mortgage company can have the property. Am I breaking any laws?
I have 'signed on' but not been accepted yet - maybe I have too much money - I don't know, but even if granted it will go nowhere. I am not in any arrears yet but have to make some serious decisions before it's too late. I just need to know what repercussions there could be.:( Does anyone know? Has anyone done this before? - Thanks so much.

Ladybird20

Dosnt the dhss pay ur mortgage while you are out of work??? its just that sumone i know has lost their job and the mortgage is being paid,,granted itsa small mortgage but its getting paid for nevertheless.....maybe this is the way things are going rather than repossessions.......

sp1987

As above, look into the mortgage assistance after 13 weeks if you are on an income related benefit like JSA. They pay the interest on your mortgage for you if you qualify.

Here is a link;

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/BenefitsTaxCreditsAndOtherSupport/On_a_low_income/DG_180321

If that was not a good idea but you were on a means tested benefit like JSA you could look into what help your local authority could provide with housing benefits etc.

Worth looking into if you haven't had chance to yet. Especially if you are looking to sell anyway, keeps the mortgage paid whilst it sells then you can move on without owing any shortfall to the mortgage lender if the property is reposessed and sold that way.

_Andy_

Drop the price some more - sounds like it's not realistically priced at the moment.
Preferable to ruining your credit history.