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God knows what to do for the best :(

Hi - well not even sure if this is in the right place but got no idea who we can talk to - we are mortgaging currently and keeping up payments on an interest only mortgage, with a debt agency with £34k debts and hubby is going to lose his job within the next 12 months as he works for a large organisation that is closing.

His income is our main one, I work part time and we have 2 children. Once his job goes we will pay our debts off with redundancy but then can not afford the mortgage so my question is -

Would we be better off at cutting losses now and trying to sell our house and move into rented and then when it happens let housing pay part the rent and we will top up from my wages till he gets work

Or

Stay put for now, we are about to miss our first ever mortgage payment in 10 years due to an unforeseen bill and then probably have the house repossed anyway and then look for rented?

Comments

  • dmg24
    dmg24 Posts: 33,920 Forumite
    10,000 Posts
    I think you would be best to post on the Debt Free board, as you need help with debt management rather than benefits. One thing to keep in mind is that any capital over £6,000 will affect your benefit entitlement, so please don't spend the redundancy until you are sure the Jobcentre are ok with you doing that.

    Once he is out of work, you may be eligible for help with mortgage interest, but this is paid at a relatively low rate (3.63% currently) and only after thirteen weeks. They will also look at any capital you may have before doing this.

    Post on the other board and see what they suggest in terms of debt management. If you have any further benefit related questions feel free to update this thread and we'll do what we can to help.
    Gone ... or have I?
  • merlin68
    merlin68 Posts: 2,405 Forumite
    Don't forget you have to have credit checks to rent, so if your house is repossesed. chances are you won't pass one.
  • DVardysShadow
    DVardysShadow Posts: 18,949 Forumite
    dmg24 wrote: »
    I think you would be best to post on the Debt Free board, as you need help with debt management rather than benefits. ....
    Discussion now here:https://forums.moneysavingexpert.com/discussion/3204300
    Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam
  • Hammyman
    Hammyman Posts: 9,913 Forumite
    You can go bankrupt and still keep the house. Its an option there if needed but you need to bank before the redundancy.
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