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?

I have had my business for only a year so no self employed payments available here. I am applying for temp work as it comes up. Will mean a drop in money but better than the sod all I am currently getting. We will be listing things we don't really need on eBay and FB. There will be lots of bargains to be had as I imagine lots of others will be thinking the same.

I dont think that he will need to shield till a vaccine is available, he will be able to go back to work like everyone else.

Agree with PP - apply for mortgage holiday now as hopefully it might be extended if restrictions continue to be strict. Don't use savings to pay that when you could be using it for food.

Apply for UC and any other benefits.

Sell house - you can still move house within the guidelines.

It is shit for so many people

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

You need to be on benefits for nine months to qualify for this.
I totally understand OPs concern. It's one thing being asked to get through this for a few months - although for many there aren't even the resources for that - but today's news has made it sound like they're planning this long-haul, eighteen months or more, and very few people indeed will be able to last that length of time.

UC isn't enough to live on if you need to pay your mortgage from it. There'll be no chance of selling your home with things as they are, so... what? Loss of equity and homelessness?

This whole situation lends itself easily to catastrophic thinking. You'll be surprised how quickly things get back to 'normal' and how well people cope and adjust to changing scenarios.

I was in a major natural disaster and saw this firsthand. Within a few years this will be that blip that happened. All will be well. Probably.

How about you? Can you try for a better paying job?

Can dh use this time to retrain, to study, there must be something productive he can do while on furlough? Can you?

Have a look at new style ESA (what used to be the contribution based part of employment and support allowance). That’s not means tested so if he’s paid relevant NI contributions and has medical support for not working it would give some money.

We're due to pay off the mortgage this summer so it won't matter too much as we'll be saving that money, but would not be easy without that as DH is self employed. We also already claim a small amount of tax credits and think that would go up if his self employment goes down until he gets something else. I get PIP which is always a minefield but not due as assessment for 4 years so think it will be OK- but everyone is different

The people I worry most for is those with big outgoing especially housing costs such as high rent or mortgage. coupled with uncertain employment

new style ESA difficult to claim for previously self employed due to NI conts required, also has quite strict criteria. Not sure how or if current shielding advice would change those criteria. I believe there may be some kind of top up of UC for health though, perhaps

@okiedokieme most furlough contracts say you’re not allowed to take on any other paid work whilst on furlough. Plus he’s shielding so couldn’t anyway

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

What fucking planet are the people who spout these kinds of posts actually on?

There is presumably going to be so many people in this situation that they aren't going to just come and repossess everyone's homes. Mortgage holidays and presumably once things are back to normal if one company has gone bust others will have to emerge to cover the need. Obviously it's terrifying but there's too many people in the same boat to just make everyone homeless and relying on benefits forever. Things will need to be done

He can't take on other work while on furlough. It's the shielding bit that makes it hard. If we just assume he's going to stop shielding when the furlough payment runs out it isn't nearly so bad. We can financially cope if he is on reduced pay. Just not if there is no pay. UC won't pay us anything because I earn too much.

I am currently applying for better paid jobs (and was before this began) and if I get one of those that will help significantly. I can't get a job with enough of a payrise to compensate for the loss of his salary - his job is just better paid than any job I am qualified for. Obviously, we can't rent out a room if our household is shielding or if lockdown continues. We could sell up and downsize, but I am not sure how that works in the current environment.

We aren't spending money on any luxuries we were able to cancel. Phone and gym memberships run until 2021. Membership of professional associations are an expense that I have to pay to maintain my professional standing or I might lose my job. I don't know what DH could do that is entirely from home and involves no contact with people at all. His previous work has been very people focused - imagine theatre/events/gigs type environment, with lots of technical skills.

I wasn't asking for a plan for us exactly. I just wanted to know who else was in this situation - shielding for an unknown period and worried about how that will financially impact on them. It's the shielding that is the massive problem and I'm just not sure what I'm missing with the government advice on the subject.

Sorry OP I am in the shielding group too.
You have to take a personal decision. Does he go back to work and risk death? The longer he can put that off the better as they are learning more all the time about who is really at high risk. Or does he stay at home. The stay at home option is more akin to a partner suddenly becoming disabled, so sadly you have to do what families have to do in that situation.
I don't think anyone can advise you what to do. And it does depend just how severe the asthma is.

I've lived through a recession and mass repossessions, and no, 'things' were not done. People's repossessed homes were sold - often at auction - for a fraction of their purchase price and the lenders waited nearly six years and came after the repossessed borrowers for the 'shortfall' - this was a major scandal in the 1990s.

The law has not changed. Lenders have not changed.

x posted. I am furloughed too. I am relying on them having more info about who is most at risk.

OP, is there anything he could tutor online, maybe do a teaching course first?
If he's hospitality he could teach this?
I'm not sure what the answer is tbh, it's skype teaching keeping us going atm, we are Musician and Entertainer. Our diaries completely emptied for live work the sunday night before lockdown.
In less than 4 hours our main income and business had gone.
He can't stay in until a vaccine is found, surely.
I know it's a worry, but he can't shield if you are going to be out and about anyway, as you could bring it home.
He could claim UC, but I think conditionality and attendance at job centres will resume after lockdown is over.
We didn't go for the UC as wanted to keep tax credits and you can't go back once you claim UC.

@alloutoffucks - the asthma is bad - he's been in ICU with it before. Apart from that he's in good health. I don't understand what the risks for him realistically are. He says he'll get some work, even if it's building site stuff, but I'm really anxious.

I absolutely get that we are super fortune compared to many. I really am. I am just trying to get a plan in place. Maybe it won't be needed and we'll all be back at work soon in which case, great!

OP if I were you I'd be looking to downsize sooner rather than later. The writing's on the wall. You'll have to try and shield your DH as best you can.do

Definitely do what pp have advised - look at the mortgage holiday asap, to optimise the use of your savings later down the line.

That is just my opinion, probably worthless. And good luck whatever you decide to do

My husband's a key worker, so he is still working. Thankfully we have money coming in.

@Devlesko - think theatre/gigs/bands/festivals but not a performing side. Currently there are zero contracts or teaching options in his industry. Everyone is just shitting themselves. People who have been making fortunes for years are seeing themselves slide into bankruptcy.

I don't think he can just stay in, but that's what some of the recent government statements seem to suggest is going to be expected. I just don't see how that is possible.

Hi OP,
Apply for a mortgage holiday and bank the money for now to add to your savings. I've taken one (applied towards the end of March), it was the simplest application ever- took two minutes and no payment was taken (by direct debit) on 1 April.

Find out if you can cancel/suspend gym payments as it is closed. We didn't touch our gym direct debit but the company didn't take it.

If your husband is laid off, and I hope he won't be, perhaps he could do call centre/customer service roll from home in the laptop/phone. The company would train him - he wouldn't need to have done it before. He could do that just to see him through until no longer shielding.

Would it be possible to try to stitch all these things people have mentioned together? So you could eke our a 18–24 month period.

Take mortgage holiday now and add what you can to savings
Look into switching to interest only mortgage
Statutory redundancy could pay out up to £16k
Cut outgoings as much as you can now

When redundancy happens, claim benefits UC/ESA (look into making a partial lump sum payment to mortgage to reduce savings below savings cap)
Tax rebate could also be a source of cash after redundancy, especially a bit later on in tax year

If you have 4-5 months worth of savings already, then maybe mortgage holiday could stretch that another 2-3 months, a redundancy payment could add another 4-6 months, a tax rebate add a month or two, benefits over time (including mortgage interest after nine months of benefit claiming) could add another two or three months. Plus furlough could continue another couple of months or even longer. That gets you to 15-21 months from now which is vaccine territory.

Switching to interest only could also extend that period overall just by reducing your monthly outgoings significantly.

I think it’s about stitching every little thing together. Good luck

I remember all the repossessions and negative equity stuff - I literally just started to work as a secretary doing conveyancing as the country was coming out the other side of that. It left a lasting impression on me.
I really think you have to save every penny you can, take the mortgage break and apply for everything you can so you can eek your savings out as long as possible. I don't know how much house prices will drop/or stagnate but you may have to sell.
Also if you are fitter and currently working from home is there any likelihood of you being able to earn more?

ITs a really concerning situation all round.

I think the sad fact is that unless people are financially secure then you will have to get back out to work regardless of the current shielded/vulnerable category you currently fall into. The government absolutely will not provide support for more than the minimum time (whoever said furlough will go on for as long as needs must be barmy). At this time you will have to make a decision about whether you go out in order to put food on the table or he stays home for potentially years on end whilst a vaccine is found and earns no salary, gets minimum benefits and I suspect very depressed. I worry that people (who have not been made redundant already) have become very cocooned by what the government is currently providing for 3 months and are going to have a very big wake up call in the months to come. Of course mortgage companies will repossess - it doesn’t matter how many, if you can’t pay that is exactly what will happen.