need some help please - mortgage being paid on income support???

millytint

Hello, I know there are some wise and wonderful people on here as a friend recommended this site.

I am being made redundant - not entitled to any payout as have only been in post for 9 months. I have been applying for jobs but nothing as yet. I currently earn quite a good salary, £30k and I work 4 days a week.

I am a single mum with a 2 year old. If I don't get a job that suits me I will be claiming income support because I understand that technically I don't need to be available for work as a lone parent.

I don't think I'll get any tax credit as I earned too much last year.

I have a mortgage owing £89,000 and monthly payments are £575 at the moment.

Terrified basically of how possible is it that I may lose my house?

Someone has told me that you can get mortgage interest paid after 13 weeks on IS - I think I could last this long on a payment holiday - but then how does it work?

Also, if anyone knows how on earth I am going to survive paying for everything else on £65 a week, I would be really grateful.

Thanks, Jo

millytint

please can someone help me?:o

beecher2

Have a look here
http://www.direct.gov.uk/en/MoneyTaxAndBenefits/BenefitsTaxCreditsAndOtherSupport/On_a_low_income/DG_180321

You could use the other forums on here for help
- if you post a Statement of Affairs http://www.makesenseofcards.com/soacalc.html on the Debt Free Wannabee forums, you'll get advice on how to cut back on expenditure.
- have a look here http://www.moneysavingexpert.com/family/redundancy-help for general help
- you'll also find help on Old Style Moneysaving

I would be wary of thinking you should only take 'suitable' jobs - isn't anything better than the dole?

millytint

beecher2 wrote: »

I would be wary of thinking you should only take 'suitable' jobs - isn't anything better than the dole?

Hmmm, I'm not sure about that. I'm a single mum to a 2 year old, if I work full time, it costs me £500 per month in childcare costs. I would prefer to be on IS and get my mortgage interest paid than take some job that makes my life unmanageable and intolerable.

beecher2

millytint wrote: »

Hmmm, I'm not sure about that. I'm a single mum to a 2 year old, if I work full time, it costs me £500 per month in childcare costs. I would prefer to be on IS and get my mortgage interest paid than take some job that makes my life unmanageable and intolerable.

You may have to re-evaluate a lot of things in your life, and the links I've given you will hopefully help you do this.

Note that the payments are being cut to 3.63% next month which means you'll only get £270 of your mortgage paid.

Hump

Just to say that the 3.63% rate only covers the interest on your loan.

If you take a less well paid job then you could talk to your lender about 'Homeowners Mortgage Support' scheme - search HMS on the direct.gov.uk website - this is where HM Treasury underwrites the risk of your lender dropping your payments to a minimum of 35% of the interest only amount on your mortgage. It's aimed at people who have taken a temporary drop in their income, but who expect to get back into a well paid job within 2 years - beware though that interest and charges continue to be added effectively extending the term of your loan in real terms.

haras_nosirrah

Have you got any redundancy protection on your mortgage?

Have you got any family who could help out with childcare while you get a new job?