Not necessarily. You may receive jobseekers allowance and housing benefit, and in some cases after 6 months you'll get your mortgage paid as part of your JSA, but you'll struggle to live on what you get, let alone pay a full on mortgage.
Anyone had a morgage and lost there job
- Thread starter Dickyb0b
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Not necessarily. You may receive jobseekers allowance and housing benefit, and in some cases after 6 months you'll get your mortgage paid as part of your JSA, but you'll struggle to live on what you get, let alone pay a full on mortgage.
Except of course that £20,000 you have paid probably only reduced the initial mortgage capital by 5p * and the £250,000 house is now only worth £150,000
*(well more seriously, maybe £5000 depending on term of loan, interest rates etc)
Except of course that £20,000 you have paid probably only reduced the initial mortgage capital by 5p *
*(well more seriously, maybe £5000 depending on term of loan, interest rates etc)
Obviously yes, my example was simplified
If you lose your job and use up your savings before you get a new job so that you start missing payments then, yes, you can lose your house. Contacting your mortgage company early to make arrangements is vital to dealing with the situation well.
If you can sell on your own terms you can keep the equity, if not, you may lose it. If you upfront and honest with the mortgage company, you can usually arrange to do the former.
I think JSA will only pay the interest part of a mortgage? Not totally sure.
In practice though, the mortgage company will sell it at auction at significantly below market rate, and they'll be entitled to various costs as well, so you'll get a lot less out of it than the £170k you suggest.
JSA will pay none of your mortgage. Housing benefit will pay the interest only.
Possibly. I'm not certain, as when I last lost my job I got my arse in gear and found a new one before I even got my first JSA payment.
They can sell it below market rate, but there is legal protection against them doing this if the sale is so undervalued that it causes the buyer undue financial hardship.
But generally, yes
how do you know he hasnt and all that he did have has gone..
it sounds like he might be losing his house and you're being a **** about it
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how do you know he hasnt and all that he did have has gone..
it sounds like he might be losing his house and you're being a d**k about it
No, it sounds like his 15 year old mind has thought of yet another question to ask the big boys.
Soldato
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Yeah if you have £140,000+ (or whatever the average house price is) in CASH. Dream on.
Oh and it is lose. L O S E not loose. You may lose your house. The noose was loose. Get it?
If you had £140k in cash, would putting all of that into one property be the best investment?
Soldato
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The previous goverment put a lot of pressure on lenders when the financial crash came to slacken off the reposessions as that would have had a dramatic impact on the economy.
As it is that caused a very soft crash in housing prices, hence imo we still haven't reached as low as we will go, but thats off topic.
Speak to your provider asap, they always say they are more sympathetic to your situation as soon as they know. Talk to them about payment holidays etc, or reduced or deferred interest.
Is this a real possibility or a maybe?
Budget budget budget, account for every penny, seriously look at every penny being spent, knock on the head everything you do not really really need.
Whats your position on family (ie are you single, couple, family etc?) one easy get out if you can is to move in with family and rent your property out. If not could you rent somewhere much smaller and rent yours out for more? This gets tricky but look at all angles.
What assets to you have, can you sell stuff... its a lot less painful than losing your house.
Whats your equity? Eg If mortage is 80k on a £250k house you stand more chance of an easy deal with a lender, if its £80k mortgage on a £70k house you will have a harder time.
Do everything you can to avoid reposession, whilst they do have duties now, they will as said probably auction or sell as repossessed which is likely to achieve 80-90% of real value. People specifically look for reposessed properties to get them at a discount.
Worst possible case if you get repossessed and they have to sell it, if they make a loss they will be after you. Bear in mind they will incur extra costs to sell, estate agents, auction fees, etc so deal with it NOW
As it is that caused a very soft crash in housing prices, hence imo we still haven't reached as low as we will go, but thats off topic.
Speak to your provider asap, they always say they are more sympathetic to your situation as soon as they know. Talk to them about payment holidays etc, or reduced or deferred interest.
Is this a real possibility or a maybe?
Budget budget budget, account for every penny, seriously look at every penny being spent, knock on the head everything you do not really really need.
Whats your position on family (ie are you single, couple, family etc?) one easy get out if you can is to move in with family and rent your property out. If not could you rent somewhere much smaller and rent yours out for more? This gets tricky but look at all angles.
What assets to you have, can you sell stuff... its a lot less painful than losing your house.
Whats your equity? Eg If mortage is 80k on a £250k house you stand more chance of an easy deal with a lender, if its £80k mortgage on a £70k house you will have a harder time.
Do everything you can to avoid reposession, whilst they do have duties now, they will as said probably auction or sell as repossessed which is likely to achieve 80-90% of real value. People specifically look for reposessed properties to get them at a discount.
Worst possible case if you get repossessed and they have to sell it, if they make a loss they will be after you. Bear in mind they will incur extra costs to sell, estate agents, auction fees, etc so deal with it NOW
Soldato
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Also think long term, whats your prospects for future employment are you well paid, do you do a specialised job, realistically is that house going to be easily within reach for you long term.
I only ask as its a difficult job market out there, its not all doom and gloom but its harder to negotiate a good wage if they know you are unemployed. Some employers are far less mercenary in this situation but some will look to pay well under market rate as they know you may well be desperate. Its not quite a bidding war for jobs out there but when asked how much you want if they have interviewed a few the chances are someone else has gone bottom dollar to try to secure the job. 75% of the wage for the job is better than no job type approach.
I only ask as its a difficult job market out there, its not all doom and gloom but its harder to negotiate a good wage if they know you are unemployed. Some employers are far less mercenary in this situation but some will look to pay well under market rate as they know you may well be desperate. Its not quite a bidding war for jobs out there but when asked how much you want if they have interviewed a few the chances are someone else has gone bottom dollar to try to secure the job. 75% of the wage for the job is better than no job type approach.
Soldato
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Yeah, I was given the chop in late 2009 and used my savings to stay afloat. My mortgage provider, Nationwide, changed my repayment to interest-only, so I was paying only the interest part, while the jobcentre paid the other part until I found work. I didn't need to take mortgage insurance as Nationwide/JCP helped as above.