Mortgage and unemployment

[Pixxie7]

People who have been made unemployed because of Covid should be entitled to help with their mortgage if they have to go onto UC.

I have voted for YABU because why should covid trump everything else (again)?

People lose their jobs for lots of reasons and so why single out lose due to covid as special whereas lose due to other reasons as not. All need help.

It might make people wake up to how living on UC is for lots of people who lost their jobs before covid and make a fairer benefit system for all that need the hopefully short term measure!

@Pixxie7

People who have been made unemployed because of Covid should be entitled to help with their mortgage if they have to go onto UC.

Like UC?

I think people have to wait 9 months for interest only help paid

So you're asking for people who are unemployed because of Covid would have their mortgage interest paid earlier?

People should have redundancy insurance to protect their mortgages.

I would only agree to that if they had to pay it back, otherwise tax payer is basically paying for an individual's investment?

Why should the tax payer cover something you'll benefit from in later life? You can have insurance for things like this

It is an odd situation as if you were renting you would get the rent paid by Housing Benefit which is paying off someone else's mortgage or investment.

I don't know what the answer is though. The line has to be drawn somewhere.

YANBU, renters get their rent paid to keep a roof over their head (and to pay off the mortgage of the landlord in many cases) so mortgage holders should get similar benefits.

Yanbu.

People need to have somewhere to live, it’s unfair that some people can have help with that if they genuinely need it and some people can’t. It’s unfairness like this that leads to people being unsupportive of the benefits system. If you pay towards it, you should be allowed to benefit from it if you need to. And if you have a mortgage, you will have paid in. The same can’t be said of all renters.

Regardless of Covid, as people often unexpectedly lose their jobs, it is annoying that home owners don't get any help towards the mortgage but renters do. I don't understand this. It is hopefully only a short term situation. It wouldn't be viable longterm.
What do they suggest homeowners do? Sell up the family home and rent instead? Seems a lot of hassle and upheaval to the kids if you find a new job after 4 months.

I agree that people need help, but this creates a dangerous precedent of “worthy” reasons to be unemployed, and “not worthy” ones.

Surely everyone who is unemployed and entitled to help deserves the same help?

Get redundancy insurance. If only for peace of mind, it’s not the government/taxpayers job to pay for people’s mortgages, the system would be untenable if so

@contrmary

YANBU, renters get their rent paid to keep a roof over their head (and to pay off the mortgage of the landlord in many cases) so mortgage holders should get similar benefits.

Mortgage holders can sell the house, renters cant sell thier landlords house

@Kisskiss you actually can't get redundancy insurance at the moment.

I think people need to wake up to what the impact will be of mass unemployment and perhaps millions of people unable to pay their mortgages. It won't benefit any of us to be in that situation and will increase the damage to the economy, slowing down recovery.

It makes more sense to enable those who are temporarily unemployed because of the current situation to keep their homes so once the situation is back to normal we can recover economically more quickly.

But it seems like so many people are more concerned with 'it's not fair'

Short sighted

Surely those that have a mortgage and have therefore worked at some point, are worthy of receiving help when needed, even if just short term, ie a six month cap. After all, it could be said that some people who rent may never have worked and therefore never paid into the system, but get the help when they need it. We should all be treated as equal. People with mortgages who hit hard times are equally as vulnerable to losing the roof over their heads, as someone who is renting in a similar position.

Aren't banks offering mortgage holidays anymore?

But yes, UC should help with the interest payments, but not with repayments.

Remortgage? Secured loan?

@Elsewyre how do you remortgage if you don't have a job?

This used to be the case years ago. K remember my dad getting some help from the government with the mortgage when he lost his job. That was under Thatcher, who wasn't know for her generous public spending, yet this existed.

YANBU. If there is another prolonged school closure I will end up having to quit my job and go on UC. I'm a single parent, finally bought my first house in January and I'm starting to think I shouldn't have bothered because at least in my rented place I'd have got the rent paid if I lost my job. Sucks.

Everyone with a mortgage needs redundancy insurance. If you can’t be bothered paying it or just think you can take a risk that redundancy will never happen then don’t expect the tax payer to pick up your mortgage payments when you find yourself redundant! YUBVU.

No reason why someone made redundant due to Covid should be treated any differently to someone who was made redundant due to any other reason.

I don't think tax payers money should be buying properties for people, which is essentially what paying their mortgage is. I do see that these people need roofs over their heads though. Any help should be on a loan basis, to be repaid once the person is back working, or on the sale of the property.

In general I'm disappointed that people thought UC/benefits amounts were fine for others, but now they are facing the prospect of possibly claiming themselves, they suddenly don't think they're good enough. OP, if you think people on UC need to have their mortgage paid in full, why were you not campaigning for this before?

you actually can't get redundancy insurance at the moment
It's at the time you get the mortgage that you get the insurance, not when you know need it. That's the whole point of insurance!

I think the problem is that when people are renting and look to buy instead, they only look at how much cheaper the repayments are. They don't take into consideration the costs that come with being a homeowner. Expensive repairs, interest rates going up, and indeed, insurance in case they lose their job. It's all part of the package.

[quote LittlePickleHead]@Kisskiss you actually can't get redundancy insurance at the moment.

I think people need to wake up to what the impact will be of mass unemployment and perhaps millions of people unable to pay their mortgages. It won't benefit any of us to be in that situation and will increase the damage to the economy, slowing down recovery.

It makes more sense to enable those who are temporarily unemployed because of the current situation to keep their homes so once the situation is back to normal we can recover economically more quickly.

But it seems like so many people are more concerned with 'it's not fair'

Short sighted [/quote]
My bank has Already been sending emails to contact them in case of financial difficulties with mortgage payments etc so I believe that provisions are already being made by at least some mortgage providers. They have the most vested interest in not seeing mass defaults, as you pointed out.
Once you pull the goVt into this it just gets messy.. some people have multi million pound mortgages, would you be happy helping them with their payments too?

@molifly14

Why should the tax payer cover something you'll benefit from in later life? You can have insurance for things like this

Because it's going to be a lot cheaper in the long run than paying Uc rent element when they lose their homes ?