Advice Please for Newly 'Unemployed'

pennypincher3562

Hi

I've just quit my job of 6 years. Even though this is a 'self inflicted wound', it's still a bit of a shock!

I've got enough savings to provide a basic standard of living for about a year. My mortgage is almost next to nothing (I am going to increase the term, and reduce the payments to £12 a month.)

Does anyone know where I stand with regards to the 'Benefits Office.'
Since I quit, and have savings, obviously and quite rightly I don't expect any support from them.

However, am I meant to report to them immediately once I am out of employment?

Thanks
PennyPincher3562

[Deleted User]

You don't need to report anything to anyone.

How much do you have in savings? If you have less than £16,000 and you're actively seeking work you are eligible for Job Seekers Allowance -- although I believe the amount tapers off between £6,000 and £16,000 in savings.

pennypincher3562

Hi CitricSquid

It's less than £16k. But can I really get Job Seekers Allowance after resigning?

I thought some time would have to pass, before I was eligible?

Thanks
PennyPincher3562

[Deleted User]

pennypincher3562 wrote: »

Hi CitricSquid

It's less than £16k. But can I really get Job Seekers Allowance after resigning?

I thought some time would have to pass, before I was eligible?

Thanks
PennyPincher3562

The specifics of your situation matter, I believe Job Seekers Allowance eligibility can be delayed for up to 26 weeks after resignation but that depends on if you didn't have extenuating circumstance that forced you to resign. There are other benefits available for people in your situation though, if you can't get JSA and it puts you in a compromising financial situation -- although fortunately for you, you have savings so it's probably not!

pennypincher3562

Thanks CitricSquid. I wasn't in any way forced to resign. I think I had just reached my 'expiry date' in the position.

I will look into it.

Cheers
PennyPincher3562

Gram_Parsons

You'll need to sign on to keep racking up National Insurance credits.

It must have been pretty bad if you couldn't wait until you had something else lined up?

pennypincher3562

Thanks Gram Parsons. While I've not done any research, I suspected that.

Cheers
PennyPincher3562

Gram_Parsons

I don't envy you, I signed on briefly about 17 years ago and the job centre or whatever they are now called were a bunch of swines.

pennypincher3562

Yes, I've very briefly signed on during that time period also. At the moment I'm not too worried, though of course that could change.

It just feels weird not being in a job!

Cheers
PennyPincher3562

Yorkie1

pennypincher3562 wrote: »

I've got enough savings to provide a basic standard of living for about a year. My mortgage is almost next to nothing (I am going to increase the term, and reduce the payments to £12 a month.)

Sorry to hear you've had to take this step.

You may have already discussed this with your lender and got it agreed, in which case ignore everything I'm about to write.

However, in the event that you haven't spoken to your lender yet, and assume that there will be no difficulties in this part of your plan, I thought I'd mention that the new mortgage rules may make this harder to do than you hope. Any change in the mortgage details needs the lender to essentially go through a fresh affordability check with you. I'm not saying they won't go for it, but just be aware that it might not be that straightforward.

pennypincher3562

Hi Yorkie

That's a good point. I won't be able to lie to the lender, about my new 'employment status.' Thankfully my current mortgage payment is about £160 a month, though you are right I possibly won't be able to decrease it to £12.

The reason I'm paying £160 a month on a £2000 mortgage, is because I reduced the term to a minimal amount.

Eh, I'll try have a a short break this week, and worry about this one next week.

At end of day, even if I'm stuck on the £160 a month payment, not a disaster. I'm glad I posted my situation in here, as it helps you see things that otherwise I would have missed.

Cheers
PennyPincher3562