DH made redundant...what should we be saying to the mortgage company...?

[misspollysdolly]

DH has found out that he will be made redundant from the end of September .

I would value some advice from anyone in the know, financially minded or who has been through this already about what sort of discussion we will should be having with the mortgage people.

I have applied for a (second) part-time job, but even if I ge this the combined income from my existing job and this other one will not match my current income AND DH's - only DH's alone, meaning a shortfall of 10k a year. So not a straightforward solution.

Do we put the situation to the mortgage people, ask their advice or for suggestions of how to cope, or are we pragmatic, going into the discussion with a 'this is the state of affairs, we can only pay the interest on the mortagage for X months or until DH's job situation changes, so there' sort of discussion...?!

Am trying not to be stressed, but to be practical, sensible and faithful that DH will find work, but it's easier to feel more like this - ! Any further advice would be greatly appreciated. TIA MPD

Bump. Anyone?

A number of things spring to mind based on my experience working for at a small debt charity and seeing people go through this.

The most important is dont waste time - do your homework now before the redundancy happens. Make a plan.

1. Find out exactly what kind of mortgage you have - as some allow payment holidays.

1. Check whether DH has any kind of unemployent insurance hidden away in an insurance policy he might have.

1. Check what kind of benefits DH will be entitled to - I would go and find out now what support from DHSS will be available and when to pay your mortgage?

1. Get an appointment with CAB now (they take a while to get one) to talk through your options before the crisis hits and put together a budget plan which you can present to creditors. CAB will negotiate on your behalf if you authorise them to.

1. Use DHs redundancy pay (if any) to pay down high interest credit card, overdraft and unsecured debt and work out a budget to live within your means after that without credit. Pay electric, water, council tax, heating, food, TV licence, necessities before worrying about the mortgage.

1. Encourage DH to take any job while he is looking for a better job to replace his current one.

1. Get DH to pull together a simple 1 page CV plus cover letter to send out to potential employers. Also get his current employer to write him a 'To whom it may concern' reference before he goes. Get him to start applying for jobs now

1. After talking to CAB use them to negotiate with creditors. Do not use any of the commercial debt management firms. CAB are free the commercial firms charge huge fees and you wil never escape the debt.

1. Remember that banks are very reluctant to repossess right now unless there is significant equity in the property. If you have a lot of equity in your property they wil be keener to foreclose and grab that equity but if you have very little equity you are much safer.

10. If it does come to repossession hearing you must go and present your case to the judge. Judges are often quite ready to put a stay on foreclosure if the homeowner presents a credible plan of what they are willing/able to pay. Most repossessions go through on the nod because the homeower does not turn up to the hearing.

11. Finally, do not go and get more high interest debt to try and pay your mortgage. It will drag you down. Let the bank repossess if thet want. You can always declare bankruptcy and start again.

BeenBeta. The DHSS no longer exists under that name.

One wonders whether the rest of your advice is out of date.

I stopped working for the charity in June so its about 2 months out of date.

Who knows what the DHSS/DSS/DWP will be called next you clearly know what I mean though.