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Waht Happens If You Lose Your Job And Cant Pay Your Mortgage

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if i was to say, buy a house and plunge my dep into it leaving a 45k mortgage. curca 450pcm for 20 yrs. what would happen if i lost my job ?

does the dss pay anything towards that. where i am now i rent under the LHA cap, so wouldnt be stressing if i lost my income, but what if i bought reasonably and then lost 'me' job ?

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if i was to say, buy a house and plunge my dep into it leaving a 45k mortgage. curca 450pcm for 20 yrs. what would happen if i lost my job ?

does the dss pay anything towards that. where i am now i rent under the LHA cap, so wouldnt be stressing if i lost my income, but what if i bought reasonably and then lost 'me' job ?

How about getting another job?

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if i was to say, buy a house and plunge my dep into it leaving a 45k mortgage. curca 450pcm for 20 yrs. what would happen if i lost my job ?

does the dss pay anything towards that. where i am now i rent under the LHA cap, so wouldnt be stressing if i lost my income, but what if i bought reasonably and then lost 'me' job ?

You're not considering getting a job, are you??? Looks to me that you're sitting pretty, especially if you can get a bit of work cash in hand to boost your beer beans money. :ph34r:

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How about getting another job?

if i lost MY job then i doubt there would be much left going. im still doing ok, but i dont want a 20 year fret when i can just roll over as is and sign on with no stressful episode.

will the dss cover anything of my mortgage ?

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You're not considering getting a job, are you??? Looks to me that you're sitting pretty, especially if you can get a bit of work cash in hand to boost your beer beans money. :ph34r:

im going stir crazy in this HA flat tbh. and im having a mid life episode.

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if i lost MY job then i doubt there would be much left going. im still doing ok, but i dont want a 20 year fret when i can just roll over as is and sign on with no stressful episode.

will the dss cover anything of my mortgage ?

Only interest and after a period of time. But don't quote me or make any life decisions.

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if i was to say, buy a house and plunge my dep into it leaving a 45k mortgage. curca 450pcm for 20 yrs. what would happen if i lost my job ?

does the dss pay anything towards that. where i am now i rent under the LHA cap, so wouldnt be stressing if i lost my income, but what if i bought reasonably and then lost 'me' job ?

Wow! Are you funding the balance with a mortgage or an advantage credit card?

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if i was to say, buy a house and plunge my dep into it leaving a 45k mortgage. curca 450pcm for 20 yrs. what would happen if i lost my job ?

does the dss pay anything towards that. where i am now i rent under the LHA cap, so wouldnt be stressing if i lost my income, but what if i bought reasonably and then lost 'me' job ?

Direct. Gov Advice

It will probably tell you there what you want to know.

Worst case scenario yes the lender could repossess with a court order but it looks like you have a good LTV so every other avenue would be explored first.

If you were to lose your job claim everything you are entitled too. Pay off the mortgage every month first before the power water and gas if need be and economise as best you can. If you have kids then it is unlikely the utils will cut you off.

Most houses are taken back by the lenders because the owners are not only financially incompetent but bury their heads in the sand rather than trying to sort things out with the lenders.

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if i was to say, buy a house and plunge my dep into it leaving a 45k mortgage. curca 450pcm for 20 yrs. what would happen if i lost my job ?

does the dss pay anything towards that. where i am now i rent under the LHA cap, so wouldnt be stressing if i lost my income, but what if i bought reasonably and then lost 'me' job ?

Their was a time when you could hope the brown fairy would come along, wave his wand, and make it all better. But he got put out to pasture.

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Direct. Gov Advice

It will probably tell you there what you want to know.

Worst case scenario yes the lender could repossess with a court order but it looks like you have a good LTV so every other avenue would be explored first.

If you were to lose your job claim everything you are entitled too. Pay off the mortgage every month first before the power water and gas if need be and economise as best you can. If you have kids then it is unlikely the utils will cut you off.

Most houses are taken back by the lenders because the owners are not only financially incompetent but bury their heads in the sand rather than trying to sort things out with the lenders.

They're like little hostages these kids and all that with all the free stuff you can get, child benefit, child tax credits, bigger council houses, free utilities...... the list is endless. dry.gif

(not aimed at you personally Geezer)

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if i was to say, buy a house and plunge my dep into it leaving a 45k mortgage. curca 450pcm for 20 yrs. what would happen if i lost my job ?

does the dss pay anything towards that. where i am now i rent under the LHA cap, so wouldnt be stressing if i lost my income, but what if i bought reasonably and then lost 'me' job ?

Nothing will happen, at least not for a few months. The banks are slowing repossessions in tandem with the government HPI subsidies to try to kickstart HPI again to save our nation. We must all do our little bit for the nation you know. Don't talk houses down as loose talk costs lives--its the Blitz spirit again.

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I'm thinking of buying into the next dip even if it's not very deep, as I'm sure anyone with savings who loses their job and can't readily find another one will be forced to spend down their savings while homeowners will be bailed out by the govt. Whether this is right or not is neither here nor there, it's just how things are. There is a risk to holding savings. Bit like people going bankrupt not having to sell the tools of their trade - govt will support people who own one home, while renters with savings and multiple homeowners will be hung out to dry.

Follow the sheeple, as subliminally they've sussed the moral hazard.

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I'm sure anyone with savings who loses their job and can't readily find another one will be forced to spend down their savings while homeowners will be bailed out by the govt. Whether this is right or not is neither here nor there, it's just how things are.

That is how it has been under Labour.

Maybe there will be further changes to these mortgage rescue bailouts under the ConDems.

Edited by friday

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thanks for the responses.

I'm out of date with benefit rules, in the 90's I was made redundant with a mortgage and a young family.

I had all the insurances in place to cover the monthly payments, but you still signed on.

there I was... with all my paperwork in a folder... ready to show the clerk at the unemployment office.

the interviewer was a middle-aged woman, she asked what insurances I had, I showed her the mortgage insurance policy

she said; "okay we don't need this then", she placed a piece of paper on her side of the desk to one side ?

I asked what it was, she told me if I didn't have that mortgage insurance policy they would have paid it !!

I thought at the time I'm never gonna take out expensive insurance like that again.

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if i was to say, buy a house and plunge my dep into it leaving a 45k mortgage. curca 450pcm for 20 yrs. what would happen if i lost my job ?

does the dss pay anything towards that. where i am now i rent under the LHA cap, so wouldnt be stressing if i lost my income, but what if i bought reasonably and then lost 'me' job ?

It's a big risk to rely on SMI as there is a very nasty but little known rule to give you a huge kick in the balls.

If the DSS think your house is either bigger than you require or that you live in a more expensive than average part of your local area then they can restrict SMI to the amount you would need if you moved to a cheaper house which is either smaller and/or in an average priced area. They do this to force you to reduce the amount of your mortgage on which they will pay SMI,or maybe eliminate it entirely. It used to kick in after 6 months on SMI, but may have changed when they enhanced the SMI scheme after the banking collapse

e.g. in your case, say your house is worth £200K and you havea £45K mortgage, they can decide you can move to a house costing £150K which you could buy without needing a mortgage, and therefore you woudl get no SMI at all

Be very careful.

EDIT: from the DWP Decison Makers guide http://dwp.gov.uk/docs/dmgch23.pdf

23540 Housing costs should be restricted to the housing costs needed to acquire suitable

alternative accommodation where the

1. claimant’s housing costs are excessive; and

2. DM decides, after considering the relevant factors (see DMG 23548), that it is

reasonable to expect the claimant to seek alternative cheaper

accommodation.

1 R(SB) 7/89; 2 R(IS) 9/91; 3 JSA Regs, Sch 2, para 12(1); IS (Gen) Regs, Sch 3, para 13(1); R(SB) 6/89

Edited by oldsport

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Maybe you cuold consider some kind of income protection insurance, which would pay your mortgage for a period of time if you were made redundant.

Be careful which policy you go with.

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It's a big risk to rely on SMI as there is a very nasty but little known rule to give you a huge kick in the balls.

If the DSS think your house is either bigger than you require or that you live in a more expensive than average part of your local area then they can restrict SMI to the amount you would need if you moved to a cheaper house which is either smaller and/or in an average priced area. They do this to force you to reduce the amount of your mortgage on which they will pay SMI,or maybe eliminate it entirely. It used to kick in after 6 months on SMI, but may have changed when they enhanced the SMI scheme after the banking collapse

e.g. in your case, say your house is worth £200K and you havea £45K mortgage, they can decide you can move to a house costing £150K which you could buy without needing a mortgage, and therefore you woudl get no SMI at all

Be very careful.

EDIT: from the DWP Decison Makers guide http://dwp.gov.uk/docs/dmgch23.pdf

23540 Housing costs should be restricted to the housing costs needed to acquire suitable

alternative accommodation where the

1. claimant’s housing costs are excessive; and

2. DM decides, after considering the relevant factors (see DMG 23548), that it is

reasonable to expect the claimant to seek alternative cheaper

accommodation.

1 R(SB) 7/89; 2 R(IS) 9/91; 3 JSA Regs, Sch 2, para 12(1); IS (Gen) Regs, Sch 3, para 13(1); R(SB) 6/89

True. For instance, if you have a 3 bed house that share with a missus & a couple of kids, then they leave you, so you're left alone in it (with a mortgage), the council will only give you enough HB for you to live in a suitable 1 bed house/flat...Any shortfall, you would have to cover.

Edited by zagreb78

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  • 149 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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