need help paying mortgage

theskid

hi,there
just recenetly been told by my firm that we have to work a week on then a week off without pay,now i have to pay a repayment mortgage of £708 a month where as i wont be able to afford it,i suppose i have the option of renting but the house is not yet habitable,does unemployment mortgage protection insurances cover for this sort of thing as i havent taken one out yet and what options do i have,can i go interest only but will that effect my fixed time as it has 4 years left and then the payments are supposed to drop to around the £450 mark which i can never understand why this was
please could you advise me,thankyou

firstaspect

If you went interest only then it would be just that, paying off interest and nothing more so the value of your mortgage would stay constant hence having lower monthly payments. Any fixed deal you are in would still last the same time as long as they allowed you to switch to interest only, you'd have to ask the lender. That would be a sensible option if you are expecting this to be a short-term problem of only working half the time.

_Andy_

You can't take insurance out now for that,thatd be like being broken into then wanting to take home insurance out and claim on it (ie its not possible).
Interest only may be possible, give your lender a call

opinions4u

theskid wrote: »

just recenetly been told by my firm that we have to work a week on then a week off without pay

Ouch.

does unemployment mortgage protection insurances cover for this sort of thing

No. Because you're not redundant.

as i havent taken one out yet and what options do i have

Not a lot. Most insurers would wriggle out of a claim by saying it was obvious that you knew redundancy was coming.

can i go interest only

Talk to your lender. They may be able to provide some help via reduced payments. But they will almost certainly expect you to prioritise your mortgage payment ahead of your other bills.

Check out the Direct Gov site and investigate tax credits. You may find there's more available to you than you expect.

Look at the Debt-free Wannabe part of this forum. There may be some excellent ways to reduce your outgoings.

My daughter used to earn £100 a month from doing a morning and evening paper round. Don't be too proud - this or stacking shelves in an evening somewhere may help to plug the gap. The paper-round was part of my survival plan a couple of years ago when I was staring redundancy in the face.

Thrugelmir

theskid wrote: »

hi,there
just recenetly been told by my firm that we have to work a week on then a week off without pay,

Be worth posting this up on the Employment forum.

As it raises issues surrounding your contract of employment.