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Chris....

Safe As Houses

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If you own a house and you only have enough savings for a couple of months and houses are not selling as currently is the case if you lose your job what would you do??

If you had STRed in the last couple of years you would have enough in the bank to get you by for at least 2 years.

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This happened to me in 2003. My company went bust & the house wouldn't sell. In the end we were forced into starting up a brand new company to generate an income. We now have 36 staff and things are going well - we have also managed to sell the house. I often wonder where we would be now if we had been able to sell in 2003 - life would be so very very different.

Don't people take out insurance on their mortgages to cover redundancy?

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Don't people take out insurance on their mortgages to cover redundancy?

They do but as with all insurance it's pretty much a scam. They generally only ever pay the interest and it's like getting blood from a stone to get them to pay it.

I would imagine most people would be in serious trouble even with that safety net. A friend was made redundant and it was about 3 months before the insurance kicked in, I think many people wouldn't last that long without serious implications.

Plus remember that many people have decided not to take out redundancy insurance as their morthgage payments are so high they can't afford the extra few quid.

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If you own a house and you only have enough savings for a couple of months and houses are not selling as currently is the case if you lose your job what would you do??

get another job?

Edited by marzipan

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get another job?

Very much easier said than done - especially if your repayments are high and you need to find a well paid job to cover them. Thats the hole we were in - there were jobs available but none of them would have gone anywhere near to paying the mortgage, let alone other living costs.

Thanks for the info on the insurance :)

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Very much easier said than done - especially if your repayments are high and you need to find a well paid job to cover them.  Thats the hole we were in - there were jobs available but none of them would have gone anywhere near to paying the mortgage, let alone other living costs.

Thanks for the info on the insurance :)

Exactly why I refuse to buy a house on more than 3.5 times my current salary. I'm in a good job with good salary, but in the event I lost my job, I'd be unlikely to get the same salary. Probably more like 8-9K less.

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If you took a repayment mortgage at least you could go to I/O.

In essense you are better of with a liquid asset rather than a house, any STRer is in a far more flexible position, you could also argue that in the current climate people will have to turn down jobs because they can't sell and move.

"Wemaster any chance of s spell checker for those of us who can't"

Edited by Chris....

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  • 302 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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