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What options do i have if i lose my job?
sho_me_da_money
Posts: 1,679 Forumite
Hiya gents,
Im in a situation where im hoping to be accepted for a mortgage this year.
The employer i work is like a 60/40 sitution - Over the 2 years i have seen the business decline and many people been made redundant.Fortunately, the business is very IT dependant and i am the only IT guy in the office.
Even though my job seems firm for the time-being, there is no guarantee it will remain that way in the future.
Now the scenario i don't want to fall in is, losing my job and not being able to cover my Mortgage repayments.
What are my options - mortgage protection plan?
Im in a situation where im hoping to be accepted for a mortgage this year.
The employer i work is like a 60/40 sitution - Over the 2 years i have seen the business decline and many people been made redundant.Fortunately, the business is very IT dependant and i am the only IT guy in the office.
Even though my job seems firm for the time-being, there is no guarantee it will remain that way in the future.
Now the scenario i don't want to fall in is, losing my job and not being able to cover my Mortgage repayments.
What are my options - mortgage protection plan?
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Comments
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The only protection you can get for redundancy are the policies that sarkin has mentioned above.
That said the best protection for redundancy is to have savings in the bank to cover your living expenses and mortgages if this was to happen as you.
The reason for this is that you will normally have to be redundant for 30 days as a minimum before it will pay out so you need to weigh up how likely it will be that you will find employment in this time. Clearly the cover would give you some peace of mind but I would always take 3 months savings over this cover - especially if you are in an industry where your skills are transferable.I am a Mortgage AdviserYou should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Is it worth you planning to leave now while you're still employed? I wouldn't worry too much about loyalty, certainly not in this climate...For what I've done...I start again...And whatever pain may come ...Today this ends... I'm forgiving what I've done -AF since June 20070
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Say my repayments were £500 per month but i chose to pay £1000 per month. And i kept this up for about 12 months.
Say i was to be made redundant in the 13th Month - would my doubled amount for each of the 12 months count for anything when it comes to making the payment for month 13 and beyond? or no?
Thanks0 -
depends on your mortgage. If it allows underpayments following overpayments then possiblyI am a Mortgage AdviserYou should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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My mortgage allows that. Got to get the right one though, not all do.0
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Could you not save the £500 you are thinking of overpaying and use that to pay your mortgage for 12 months should the worst come to the worst?
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sho_me_da_money wrote: »Hiya gents,
Um*cough* don't forget us ladies:DTurn your face to the sun and the shadows fall behind you.0
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