Mortgage when not working

Redundancy is a major worry for most working people. Even if there are two earners in the household, you’ll still be concerned if the word is banded about at work. Thankfully there are some safeguards in place that will help you make ends meet but you’ll still be worried about what happens to the mortgage when not working.
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Help with mortgage costs

You’ll be happy to read that you can get help with your mortgage costs when you find yourself out of work. The first thing to do is to act quickly. Don’t wait for the worst to happen, get onto this issue immediately. If the lender doesn’t think you’re dealing with your debt issue, they can take action through the courts which could end up with your losing your house and all the equity you’ve built up in it. It’s never too late to negotiate with the lender. They don’t want to go through the legal process, they just want a return on their investment so talk to them.

Benefits that help with mortgage repayments

There are several benefits that help with repaying the mortgage including income support, which is a financial aid for lone parents or carers. Then there’s Income-based Jobseeker's Allowance (JSA), which is paid to those actively seeking new employment. You could find that pension credits are available. You need to be over 60 to claim these.

Claiming for benefits

When you make the claim for benefits you’ll be told whether you’re eligible for help with your mortgage. Financial help that pays towards your mortgage is known as housing costs payments. These payments are made at the standard rate of interest so don’t take into consideration the charges actually levied on your mortgage.

Interest only

Altering your mortgage to interest only is a way of lowering your outgoings and yet retaining the mortgage. This is definitely something to consider if you feel that you’ll be out of work for a while.

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