FabGuys.com forum: Mortgages and Redundancy

By *uddite OP Man
6 weeks ago

wirral /liverpool

So quite a lot of companies are getting rid of staff nowadays,so if youre made redundant and have no income, how do you,can you pay your Mortgage,is there any state help.

Also when applying for a mortgage do lenders look at your workplace and score it on risk of redundancy and refuse a mortgage.

Seems to be NHS staff,office workers,and engineering taking the brunt.

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By *astDevonGuyMan
6 weeks ago

East Devon

Have been in this position once …no state help whatsoever. Just basic unemployment benefits and if you have had a redundancy payment , you might not get that. Anyone in this position should speak to their lender , who may offer a payment holiday. There used to be some insurance policies that offer protection again speak to your lender to see what they offer.

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By *SAOFMan
6 weeks ago

Work/Play in London, live in Kent

Unlikely to get state help / the expectation is you get paid a redundancy payment and you use that to bridge till you have a new job.

You also qualify for a derisory payment once a fortnight.

Banks do look at length of service and how stable your employer is. My husband and I got our mortgage on my salary and more importantly my unlikelihood of redundancy. Good job as he was made redundant the day we got the keys.

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By *upertedMan
6 weeks ago

Nelson

Always ensure you let your mortgage provider know too. Don't Bury head in sand.

They have options of minimal payments and extending term. Not ideal I know, but if it keeps a roof over your head then has to be a good thing.

They don't want the bad PR of repossessions as has happened in the past. 🏘

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By *amie2018cMan
6 weeks ago

north cambs

Pleased I paid mine off a few years ago . Was made redundant in 1991 and spoke to building society straightaway but fortunately employed within the month.

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By *0yguyMan
6 weeks ago

Cumberland

If you’re sensible you took out insurance cover with your mortgage to cover ill-health and redundancy.

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By *ammy57TV/TS
6 weeks ago

Stevenage

"If you’re sensible you took out insurance cover with your mortgage to cover ill-health and redundancy."

I work in insurance.

Ill health and death required by some but generally only dread disease for health.

It's really expensive if you want mortgage cover for more than death.

Unemployed cover is extortionate unless your on a low mortgage and even then they generally only provide cover on first six -12 months and then often only the interest.

If unemployed you may, once payment has run out, get relief from housing benefit on interest but I think that stopped about ten years ago.

Expectation now is , you sell and maintain yourself on the profit.

(Govt very keen we all rent. Apparently it looks better on national economy figures?!?)

Unemployment has I think jumped slightly to 5%

And as such it's the elephant in the room.

It was the same in 2005 approx

But last time we had a "structural re-engineering of the economy"

Eg 1985 we had 11-12%

We face ai and Brexit and an economy dependent on overseas owners with cheaper labour available in Europe.

This is going to get worse.

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By (user no longer on site)
6 weeks ago

"Always ensure you let your mortgage provider know too. Don't Bury head in sand.

They have options of minimal payments and extending term. Not ideal I know, but if it keeps a roof over your head then has to be a good thing.

They don't want the bad PR of repossessions as has happened in the past. 🏘"

This ^

Another reason is that if you don't do as suggested your credit worthiness goes through the floor - you'll be reeling from it for years.

I've read a stat somewhere (wasn't on facebook or tiktok), that a very high percentage of people are 3 months from ruin due to lack of savings, investments, sidehustles, fallback plans etc. Scary thought for this wet and windy Friday night.

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