What Happens to My Mortgage if I Lose My Job?

Losing your job or finding yourself ‘between jobs’ is, unsurprisingly, a stressful place to be. Keeping a cool head and taking action is important.

First of all, have you received all the help you can get from elsewhere? State benefits may be limited, but sometimes, being in receipt of them enables you to qualify for more substantial financial help as a result. Also, you might want to make sure your were treated properly by your employer when you were ‘let go’. Sometimes, improper treatment can result in further recompense becoming due to you for unfair dismissal, etc.

Many of us have sensibly built up a small nest egg for the proverbial ‘rainy day’ and losing your job probably classifies as a pretty rainy day in most people’s lives. Having such a nest egg can be a relief, but if you are out of work for 6 months or more, that nest egg is unlikely to last long.

Cancel all agreements for non-critical services. Remember, Gym memberships might need notice, so act now. After all, you are going to have time for those morning walks so a gym is most definitely a luxury you can do without! It’s amazing how quickly we all build up a raft of monthly expenses when we are in employment. Be ruthless.

You should contact your lender early. Perhaps you can arrange a mortgage repayment holiday or convert temporarily to paying interest-only?

Of course, the best way to prepare for losing your job is to insure against that risk. This is called mortgage protection insurance. It shouldn’t be confused with the insurance you may have taken out when you first took your mortgage which may have been put in place to protect your lender, not you! Check the details now.

Many mortgage protection policies will pay your mortgage payments for you, although they might require you to be claiming benefits to qualify, or there may be a delay before you are entitled to claim.

What is certain is that losing your job can be very stressful. You’ll cope better knowing your family’s home is protected. Contact us to discuss how we can help put in place a plan for the unthinkable.

For more information contact us or speak to an mortgage adviser on 01628 507477.