Can't afford to pay!!

Queenieviolet

A relative of mine has just swapped jobs and is left short of money for a couple of months. The upshot of this is he cannot afford to pay the mortgage on time next month. He has contacted the mortgage lenders but there is nothing they can do to help. He has nowhere else he can borrow this money from and is thinking of cancelling his direct debit - what willhappen if he does this? Any help appreciated

djbd1973

Queenieviolet wrote: »

A relative of mine has just swapped jobs and is left short of money for a couple of months. The upshot of this is he cannot afford to pay the mortgage on time next month. He has contacted the mortgage lenders but there is nothing they can do to help. He has nowhere else he can borrow this money from and is thinking of cancelling his direct debit - what willhappen if he does this? Any help appreciated

Why can't they help? Does he have a credit problem or does his terms of the mortgage restrict him for taking a payment holiday or is it because he has changed jobs and that is viewed as an instability?

Also, how much is his mortgage and how many months is he looking to default on? There is always someone to help but he is going to have to act fast and be dilligent about it but if you can post some extra information it will help get better suggestions. I wish him luck

maninthestreet

Cancelling the direct debit is not a good idea.
Will his bank give him an overdraft? What about a loan?

sammyjammy

How much is he short? Wouldn't it be better to not pay something else? Unsecured debt?

Andy_L

Will his new employer give him an advance?

poppy10_2

Don't just cancel the direct debit. Tell him to negotiate with the lender, they are usually quite accommodating if you keep them informed.

Which lender is it?

Queenieviolet

Terms of mortgage won't allow a payment break - not sure why. He has explained circumstances to the mortgage lender but they claim they can do nothing to help. Should he try to speak to someone higher up? There's nowhere else for him to borrow the money as he has already stretched the limits of borrowing on credit cards/bank loan etc and is also not going to be able to pay them for that month either. The mortgage is new as they have only been in this house for about 6 months but they have been with this mortgage lender for about 3 years and never defaulted on a payment - I think it's Nationwide but can't remember - it's definitely a high st building society. Thanks to everyone for advice.

PasturesNew

If he's swapped jobs, it implies they are back to back.
One would assume that if you're swapping you won't be worse off either.

So how come the "couple of months"?

djbd1973

Queenieviolet wrote: »

Terms of mortgage won't allow a payment break - not sure why. He has explained circumstances to the mortgage lender but they claim they can do nothing to help. Should he try to speak to someone higher up? There's nowhere else for him to borrow the money as he has already stretched the limits of borrowing on credit cards/bank loan etc and is also not going to be able to pay them for that month either. The mortgage is new as they have only been in this house for about 6 months but they have been with this mortgage lender for about 3 years and never defaulted on a payment - I think it's Nationwide but can't remember - it's definitely a high st building society. Thanks to everyone for advice.

If he definitely can't raise a loan or extension, then perhaps he needs to get a second job, part time casual work, sell the TV, eat beans on toast for two months, etc what ever needs to be done but by the sound of it he needs to do something and fast.

I've had a job cleaning toilets in offices to get me extra money when it was needed but I didn't care as it was a short-term solution at the time.

If he is on the limits for borrowing on cards it sounds like something is going wrong somewhere and I don't want to prejudge his circumstances but there may be more to this.

Can any family members help out?

homer_j_3

I would not pay:

gas
electric
water
internet
telephone (land and mobile)
credit cards
personal loans

and use this money for mortgage. I would probably try and come to an arrangement with the council tax and any home/car insurances for obvious reasons (if these are paid monthly).

Queenieviolet

He left one job before starting the next and drained any spare cash in between! Not exactly sure of details. Thanks Pasturesnew