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What Happens To Your Mortgage When You Lose Your Job?

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It’s something that we all have hanging over our heads, the issue of redundancy. If we end up losing our job for whatever reason, there are many other impacts of it on our lives. From our dependents, to our general bills, but also, our mortgage. So, what happens to your mortgage if you lose your job?

Various support is out there

For those that have been made redundant, there are different types of support. You could alert your lender that you are unable to pay your mortgage on time, and this can help keep everything ticking over. If you don’t have anything like mortgage payment protection insurance, it would be difficult to get this at this stage, but it’s still worth pursuing.

Other options

Depending on how close you are to finishing off your mortgage payment, there could be other methods that are particularly suitable. You could borrow the money to pay off the last few payments, and then you could get yourself into the buy to let scenario, and use your home as a way of earning money.

Is there another way out?

If you are very close to paying off your mortgage, it could be worth doing what you can to get those final payments done. You could take out a loan to pay off this, but you need to be aware of your credit score, and if you have been made redundant, whether this is going to have a positive outcome at all. If you are really struggling, you might end up having to sell your house fast to real estate investors, which is a very common approach as far as house flipping is concerned. But when you are looking for a way out, and you are loaded with a property that you are unable to pay for, sometimes the best option is to cash in your chips and walk away.

How your employer can help

If you are facing redundancy, and you have a union representative, it’s important to speak to them to make sure that you have a proper redundancy notice, and that you have as much help as you are entitled to. If you have taken out mortgage protection insurance, this is something that will help with your redundancy.

Speak to the lender…

Even if you don’t have mortgage protection in place, speaking to the lender to discuss what has happened could be the best approach. Instead of waiting for the debt to mount up, it’s worth speaking to them to see if you can reschedule your repayments, especially for the foreseeable future, so that they are smaller, which gives you the opportunity to find a new job.

It is certainly a concern for most of us, but if you don’t want to lose your home, there are ways around it. On the other hand, if you have struggles in keeping your home, it’s always worth thinking that renting a property can be cheaper, especially when you consider the additional costs to a standard mortgage, such as the general home maintenance. Overall, there are ways and means to support yourself.