What Can I Do?

Wheresitgone

Hello all. New to this so please be patient.

Ok, here goes, I am currently unemployed - hopefully not for long, my savings are just about exhausted.

I am home owner with approx £55k equity
I have no credit/store cards
No other debt

The building society wont re mortgage, but I am on interest only repyments for 3 months until I get sorted.
I need some cash and quick, but the normal banks wont lend because at the moment I am unemployed.

Any advice please??

katsu

Hi There,

Getting a loan that won't cripple you with repayments is pretty unlikely. What is it you need cash for (something in particular or day to day living)?

Have you registered as unemployed with Job Centre Plus and therefore ensured you are getting Job Seekers Allowance? You can then also apply for support with the interest element of your mortgage payments after I think the first three months.

If you look at the sticky threads there is an SOA template. You can list all your outgoings in that and we can offer suggestions for how to pare down your expenses.

Good luck.

Tixy

Hi

What do you need money for? to pay the mortgage or for something else? As you have found getting a loan is not going to be possible whilst unemployed as you will have no way to repay it.

Have you asked the mortgage company if you can stay on interest only for a longer period?
Did you not have any mortgage payment protection or similar insurance you can claim on?

Have you looked to see if you might be eligible to apply for help on the homeowners mortgage support scheme?
Are you claiming any/all benefits you are entitled to?

Wheresitgone

Thanks Katsu,

I just need cash for bills and existing really until Im working again. I am currently receiving JSA and the benefits pay my mortgage interest which leaves me around half the monthly payment.

katsu

Hi Wheresitgone,

I can't see that you will get a loan, so you need to look at how to reduce your bills and living expenses until you find a job. If you are on interest only payments then surely the benefits you can get for your mortgage should just about cover the monthly payment? Ask the mortgage company to keep you on interest only for longer.

Look at the old style board for tips on cheap cooking.

Ask your mobile phone provider to put you on the lowest package.

Cancel things like satellite TV, reduce your usage of gas and elec (I'm typing this in a thermal vest - with other clothes too ).

Wheresitgone

Oo! Youre painting a picture with words there!!

Im doing what you suggested, cancelled sky etc., its just when all the bills arrive at the same time Im going to be in the brown stuff! I think I will have a word with the BS about the mortgage. Why cant I have some of my money back?! If the worst comes to the worst they can always have the house!

Tixy

Your mortgage is your main priority debt (well that and council tax). Therefore apart from trying to continue on interest only I wouldn't go try reducing your mortgage repayments further or borrowing more from them (which they won't go for).

Instead I'd try negotiating with your bill suppliers, eg if its gas, elec, water etc ask to be allowed to pay over a period time rather than in a lump sum. Most will allow 3-6months without to much arguing. Are you claiming council tax benefit to help with your CT bill?

As katsu says anything else you can do to cut outgoings whilst you are unemployed is obviously also a good thing. Now might be the time to check your gas & elec are with the cheapest providers, see if your B&C insurance and any life insurance is competitive etc.

katsu

Tixy is right - tell the utilities etc you are unable to pay in full (when it happens) and negotiate with them a cheaper monthly payment/payment over a longer period. I once met someone who hadn't paid a water bill for absolute ages and they were able to keep having water as legally it isn't a quick and easy thing to cut the water off.

Do consider posting an SOA and you will get some great advice.

Avoid extra credit - with the exception of a crisis loan if you have a real crisis (this is a loan via job centre plus and repaid from your benefits). Getting into debt will not help you.

I hope it isn't too long before you find a new job.

RAS

Have you applied for Council tax benefit?