What are you going to do when you just run out of money?

[batvixen123]

My situation - I'm currently working from home. DH is on furlough, but is bringing in considerably less than he would do normally due to the cap on earnings. Am aware we were v lucky before. DH's company is one which relies on people being allowed to interact in public - they can't work while mass gatherings, and hospitality is shut down. Currently the company owner is pretty honest about the fact that they know the company will go bankrupt, but they're keeping it open on paper in order to be able to get their staff furlough pay. Once furlough pay stops, the company goes into liquidation.

DH has worked in his industry for over 20 years. I think it would be challenging for him to get a new job in another industry. Especially if he can't leave the house - he has severe asthma and so is meant to be shielding. If shielding continues until we have a vaccine, potentially 1-2 years, he won't be able to work.

If DH can't work and his furlough pay stops, which we expect will happen well before a vaccine appears, then we won't be able to pay the mortgage. We have savings that will last us maybe 4-5 months but not more. Certainly not years. I don't see how we can put the house on the market to sell it before foreclosure if we are meant to be shielding. I don't see how we can move house without massively breaking shielding.

If we're going to have to break shielding anyway, is he best off just finding some kind of work when furlough ends and he loses his job, even if it involves going out for some of the time? Are there any other options?

What are other people in the shielding category going to do when they stop receiving furlough pay etc if the expectation is that they can't engage with the world again until there is a vaccine?

you will be able to apply for universal credit. its happening to a lot of people ..lifestyle changes will be in order i guess.

Universal credit won’t cover mortgage repayments though will it? So do you just stop paying and wait for repossession?

According to MN it doesn't matter that people are losing their livelihoods and it is akin to being Hitler to be worried about your job

But YANBU OP, this is very real for many many people and I just hope this doesn't go on for much longer and your DH's business can make it through

Mortgage holiday application? If relevant? 🍀

Have you spoken to the bank about a mortgage holiday?

According to a lot on Mumsnet, you just need to stop buying luxuries. It’s so simple!
No consideration for the mortgage repayments that you committed to when you could afford it, or private rent, or other fixed expenses... just stop buying luxuries 🤷🏻‍♀️

Mortgage holiday followed by restructure? If you paying interest and capital, can you agree interest-only payments until your dh finds work? Can you rent out a room to help with mortgage payments?

I'm on furlough. The business I work for has had to close while we're on lockdown. The longer it goes on, the more likely it is that the business will go under.

I'm lucky in a way to be in rented accommodation so I would get my rent paid if I lost my job, plus I'm a single parent so I'd get benefits. I've been in that situation before and it's shit though, no spare money for luxuries, having to penny pinch when food shopping, etc.

I had just bought a house in January before all this started and I was supposed to be moving in this month. My first home. If I lose my job I'll lose that house. I'll be devastated.

On a personal level, selfishly or not, I'm praying for an end to lockdown as soon as possible.

Can your DH speak to recruitment consultants about what transferable skills he has. So many businesses which relied on face to face are now innovating and there may be a new role for him if you start looking now. Recruitment is hard but a good agent will help you as they are all desperate for their businesses to continue too

If that's not possible then use the furlough time now to downsize your budget, do whatever you can to cut costs and make your savings last as long as possible. My DH is self employed and currently has no income and I've taken a 40% cut since the lockdown began. We are cutting back everything we can

Rent out a room only after current restrictions are lifted obviously.

Your DH should be entitled to a redundancy payment if/when the company goes bankrupt - there’s a government scheme to pay this is the liquidators can’t. If he’s worked there 20 years that should be a reasonable sum which would help a bit.

Furlough pay will go on as long as it needs to so you don’t need to worry on that front.

a lot of us will be in the same position most of us already are.
mortgage payment holidays? renting out spare rooms if possible?

what other advice do people want? OP said her husband will probably not be able to work for a year or two??? the expectation is he would need to apply for UC

people will lose jobs, homes ..its a sad reality for a lot of people.

@Angellegna will it though? I doubt it. Way more people are applying for furlough that the government anticipated. Where's the money going to come from?

Mortgage holiday payments are 3 months, they won’t offer that for 2 years! There won’t be UC if this goes on for 2 years, that money comes from taxes, no tax no government payments. I can last 6 months at tops, then will need to go to work to pay bills and afford food. I hope there are still jobs available after this, I hope our society is still going to function.

can your DH use this time to re-train? the new online world is going to require more people in some areas so anything to build up skills in those areas would be good.

it could be computing / coding or making videos online or writing / editing or organising events online.

For example, there is still a lot of demand for conferences / business events (the kind of things that used to be in hotels), and if someone can find a good way to organise those as online events, that could be a good business in a few years.

blossombabies I got the impression that the OP was looking for some practical advice. Applying for UC is all very well, but it won’t cover her expenses. So for example do you stop paying your mortgage and wait for it to be repossessed? Or do you apply for bankruptcy? Do you contact any creditors and tell them you can’t pay? That sort of thing. I don’t think she was expecting anyone to magic her up some money to pay her bills.

@Angellegna no it won’t!! I expect for most people it will stop after the first 3 months and only continue on for particular industries or circumstances after that. There’s no way it will just carry on indefinitely.

Op dh is in a similar position job wise but without the added complication of shielding. His industry also depends on people being happy to be in close proximity of each other and so even if they’re allowed to reopen at some point who knows what business will be like, even if they survive the closures they may still go under due to lack of business afterwards. We shall see. No practical advice because honestly I’m not dealing well with it all and am struggling with my mental health. We have taken a mortgage holiday though, and our spending is way down anyway purely as we can’t go anywhere!! We do have some savings so would be ok short term, but like your dh, mine has worked most of his life in this industry and with the likely awful employment market he will struggle I expect. He is not furloughed yet but is down to 80% pay. Most of his company is furloughed.

Please don’t offer tech as a get out of this, my OH is a very skilled, well thought of, programmer who runs his own business and he’s got no work or the sight of work coming along.
We’re in the same position as OP and are currently making our savings goes further by using the mortgage holiday etc in the hope that work comes along quite quickly.
He’s also shielding but if it comes to it he’ll have to go out to work.

Take our Chances! Nothing else we can do

You could look at switching to an interest only mortgage. Will interest rates as they are that should considerably reduce monthly payments.

I think you are being overly pessimistic.

You can get a 3 month mortgage holiday. Possibly then switching to Interest only with your provider on a temporary basis.

You will be entitled to mortgage interest support. Not huge but something

You will get UC and with kids and no other income you're looking a maybe £1000 per month. Thats enough to live on. All other debts can be rearranged. You would also qualify for council tax support.

This wont last 2 years.

If he's on furlough, why not look for other work now and build up a bigger reserve of money, I'm doing a couple of shifts as my hours were halved

okiedokieme the OP said he’s also shielding.

Apply for everything possible. My job is only part-time and I'm currently furloughed but I've already applied for UC top up.
I have already asked for a rent holiday, a bank loan holiday and a car payment holiday. May not get them but it will help with cash flow while things are bad...although clearly not long term.
If I finally run out of money, absolutely and entirely, I will have no option but to go bankrupt. As will an awful lot of other people, I suspect...

Could you use mortgage holiday for now and put the money aside for after when he no longer has money coming in ? Then keep going until def laid off and as others said will be entitled to redundancy if that's the case which could help for a little longer , also if it happens apply for help with anything you can and ring round any creditors to see if you can temp pay less or any options like that