Facing unemployment - just over £1100 in benefits

[BringBackCatsEyes]

I've just put my figures in a calculator and think I will receive just over £1100

UC £ 362.73 per month
(standard + child, then take away JSA )

117.22 per month child benefit

Council Tax Support
£ 71.07 per month

Support for Mortgage Interest loan
£ 152.49 per month

New-style Jobseekers Allowance
£ 414.05 per month

Are people actually living on this or do they end up selling their home to move into rented?

I am trying my hardest to find work. My contract ends at the end of this year.
I am not asking for advice on finding work, I want to hear from those who have experienced moving to UC and how they manage?

It’s a bit of a stupid government policy though as it just means people are forced into the private rented sector which is usually more expensive and then paid by the government through housing benefit ( this paying the mortgage of the landlord).

I imagine it’s a tiny number of people who can’t pay their mortgages and as a result sell their assets before renting privately. An even tinier number in that group would be entitled to housing benefit because most wouldn’t be eligible for a long time due to their property proceeds. Most people cut their cloths and have enough provision to absorb hard times, or do any of the other options I outlined earlier.

it might be expensive to move, OP, but if you were in an urban area perhaps both you and teen dc could get a job. As a sixth former in my town he/she could be working the summer holiday/after school clubs, or become a lifeguard. There are jobs that work for this age group.

You can imagine whatever you want @fundamentallyauthentic. Doesn't make it real. Especially when people have been cutting their cloth for years. There isn't much, if any cloth left for many people cut.

Mortgage protection insurance wouldn’t cover you if you were on a short time contract and knew that you were going to lose your job. It’s extremely difficult to get these policies to pay out.

A better bet is to overpay the mortgage, and then you can draw down the overpayment reserve if you lose your job (at least, my lender lets you do this).

I don’t have any research on this, have you? But it’s hardly beyond the realm of possibility that most people would do any one or more of loads of options BEFORE selling their asset and going to the private sector. Like I said, the mortgage payer has more options than the renter and that’s a fact.

You dont have to go far to educate yourself @fundamentallyauthentic. You're already on the Cost of Living forum. Thousands of posts documenting real life experience of the cloth cutting, people here have been doing for years.

I'm so sorry Op, the job market is really rough right now, I think people who haven't been job hunting in a while don't realise just how bad and hard it is. It's hard not to spiral.

But I kept reminding myself I only need one job. It can turn around really quickly and you do have time.

Odd system, where the government pays the landlords mortgage but not the home owner.

Pay your modest savings off your mortgage, to reduce the amount - as it’s for housing it’s not seen as deprivation of assets. See if you can increase your term to reduce your repayment?

Take any job you can as an interim job whilst you’re looking

if you were renting, you’d get help with the rent. Depending on the area would depend how much you got for a 2 bed. In my area it’s £700 towards a 2 bed and neighbouring area £650.

Indeed, but that was thatchers doing. Sell the council homes and then they and others can be privately rented instead. Means less social housing more private rentals. Capitalism for you

dont forget though, rarely is all uour rent is covered when renting privately. Often £200/300 has to be covered from other benefits

Are you entitled to Child Maintenance?Do you get child benefit. Other things to consider are grants for school uniform
Food banks

Can you extend the term of your mortgage to lower the payments?

I don't think I will be able to do this if I am unemployed nor do it now while I have 5 months left on current contract.
Do you know otherwise?

Have you read my posts?
The very first one includes child benefit.
I do get a small amount of maintenance from my ex.
My son is in 6th form, he doesn't wear a uniform.
I am of course aware of food banks.

I know I can sell my asset.
I could potentially release enough equity to pay off my mortgage (I am 55).
How would renting my house out work? I'd just need to rent somewhere else and I don't think I'd get support for that (quite rightly).
I do not have enough space to rent a room out.
I already understand about the SMI loan (my initial post outlined that).
I cannot extend my term in my circumstances.
I could go interest only.
I cannot get mortgage protection insurance.
I could take a mortgage holiday.

Sorry wasn't trying to be smart just thinking how else you could maximise what you could get

Don’t be too disheartened about job hunting, OP.

I don’t know what you do for a living but the job market in most industries plummets in the summer. Everyone is on holiday and unavailable to pencil in interviews etc.

It usually picks up a lot in September.

Intellectually I know this. I have been involved in recruitment a lot.
The summer is quiet.
But being proactive helps me with my low mood.
A crystal ball would be useful right now.

If there is a possibility of finding space eg: using a lounge or dining room as a bedroom, you can earn up to 7k+ a year tax-free under the rent a room scheme. Even if it's just temp / mon to Fri, term time etc etc

I live in a 2 bed terrace (mentioned upthread). There are no spare rooms.

I think it would be great if homeowners who have fallen on hard times were given that kind of support but there would no doubt be a backlash from non homeowners arguing that it’s unfair to help people who already have an asset🙄

There is a weird belief that anyone who has achieved a modicum of success (high paying job, home owner) should never receive an iota of help if their circumstances change until and unless they are reduced to abject poverty. It’s an odd way of thinking that seems to be prevalent on MN: “if I’m poorly paid/renting/can’t afford to buy a house then anyone who has had more than me doesn’t deserve help” It’s wild really. See the venom reserved for anyone who earns more than an average wage and posts about economic hardship (there is always a snippy “oh poor you, well try living on £12k a year like me..”).

@BringBackCatsEyesSpeak to your mortgage lender. It’s been a long time since I worked in mortgages so things may have changed. At the time you could generally change your mortgage term at any time. There is normally just a small fee to pay. Most mortgage lenders only let you take a payment holiday against any overpayments you had made.

Sorry if mentioned before, but if not working you will be able to go on reduced / social tariffs for your utilities. Also do you have a private or occupational pension?

It's not enough for a nice life that's for sure.