Unemployed Mortgage Worries HELP

lou78_2

Can someone help, my husband and i have both been made unemployed. We don't have any insurance on our mortgage just house insurance. We both hope to be back to work soon as we have never bee unemployed before. We have a mortgage with northern rock, our mortgage started 9 months ago, we have a mortgage and a unsecured loan on top of it.Does anyone know of which help the morgage company can give us if any. We have next months mortgage but don't know what will happen after that. Please help!!! Thanks

homer_j_3

How much is the mortgage £
How much is the loan £

What does this cost you per month?

Is the mortgage on repayment/capital and interest?

Do you have any other debts that you are paying for?

How much money do you have left in the bank inc savings?

lou78_2

the mortgage is for £80,000 and the loan is £21,000
cost per month is £625
No other debts
£1200 left in bank inc savings
Mortgage is on repayment

Ianh82

first thing is to contact the lender and inform them of your situation immediately and see what they can do for you.

_Andy_

Perhaps see if they can change the mortgage from capital repayment to interest only to reduce the payments in the interim.

lou78_2

if we payed interest only for just now till we were both working, if we wnt back to paying our normal repayments would our mortgage payments go up from what we pay right now

carolineb23

Lou thats a terrible situation for you to be in. Unfortunately I have seen circumstances such as this in my childhood and I was adamant that we would have adequate mortgage payment protection. It's so important because you don't know what will happen in the future.
regarding your finances I would advise your lender of the problems, and ask to change to interest only for a while until things are sorted. They will have heard this sort of thing before so may have some ideas, but the most important thing is to tell them. I am not sure whether your payments would rise after you come off the interest only period, I would suspect not, but your lender is the only one who can confirm this as it may be different from company to company.
It would also be important to investigate all the benefits you would be entitled to which may take some pressure off. try www.entitledto.co.uk to get an idea.
Hope things inprove soon.

lou78_2

Thanks for everybodys help so far!!

ThriftyBeanie

In addition to switching to I/O, you are going to need some liquidity until one or both of you finds a new job, as I'm sorry to say your £1200 won't go very far.

Do you have anything tangible to show for your loan of £21k, like a car? It might not be very palatable, but better to sell the car and keep paying the mortgage than face losing the house.

epsilondraconis

How long were you working for your respective employers? If the company / comapnies went into adminstration you will be entitled to some statutary redundancy from the government. I know from experience it isn't a lot, but it is better than nothing. I believe that if you worked for the company / companies less than a certain time (which I think is 9 months), you are not entitled to any redundancy. From memory, if you contact your local job centre and they will start the ball rolling.
Also, if the company / companies are in administration, pursue the administrators for any pro-rata holiday pay that you are entitled to.

If it's any consolation I know how you're feeling. Hope all goes well.

epsilondraconis

If you have any luxuries such as Sky TV, then this is a good time to cancel them. Although I imagine you would have thought of that already.