Mortgage problems

[halt41]

I've just lost my job and we have a huge mortgage. No savings so cannot pay this month or credit cards. All with the same bank totalling £1300 per month. We intend to sell the house asap to pay off all - we have a lot of collateral in the house so will be able to pay off mortgage and cards and leave us with enough to buy a much lesser house but without a mortgage. Do you think the bank will give us stay of repayments until the house is sold? I'm a my wit's end. My husband doesn't want to sell but I can't see any other way out. I was the bigger wage earner and I lost my job through my own stupid fault . Still we are where we are. Can anyone answer the question about the bank? I've never missed any mortgage payments with the same bank in 23 years. Hope someone can answer.

[237SJ]

Have you looked at the small print of your contract? When I had a mortgage, I could take a mortgage holiday of up to 6 months.

[redman41]

Hard lesson to learn if you have lost your Job through a drink issue !
Work hard and Play hard but don't drink at work !!!!!!!!!!!

[arwyn]

Explain to the bank about this month, then anything can happen before next month's is due. It's You first missed payment in 23 years so tell them that. Good luck

[4getmenot]

did you get any redundancy money to tide you over for a while?

[237SJ]

If you don`t have a mortgage holiday arrangement written into your contract, contact the bank and see what they suggest. Is it a repayment mortgage? See if you can switch to interest only for a while (they`ll probably charge you to do that). If you can`t cover the costs of interest only, maybe consider taking a lodger for a few months until you can sell.

[chrissa1]

If it was a Repayment Mortgage could you request to go Interest Only for a while.

[pretty_snowdrop]

You need to contact the bank asap. As others have mentioned it may be that you can take payment holidays and obviously this is something you can discuss. The fact of the matter is you have made a contract with the bank to pay £xx each month and they will expect that payment. They will take into consideration that you have not missed payments and they will try to help the best they can but they won't wait for long. Good luck and i hope everything turns out ok for you.

[halt41]

Thanks everyone. Part of my mortgage is interest only - the problem is the repayment bit which is really high because it is only over a small number of years. I'm seeing bank tomorrow. I know I've been stupid. No redundancy because I wasn't made redundant. I resigned so no Job Seekers Allowance either. I'llpost what happens tomorrow.

[hc4361]

I hope the mortgage company gives you breathing space to either get the house sold or get back in to full time employment.
Your credit and banking history will hopefully help.

I sympathise. I was in a real muddle a few years ago and came out of it well, with help from my bank. Good luck.

[chrissa1]

Could you not ask them to extend the time on the Repayment part. This would lower the payments.

[boxtops]

Do you not have any Mortgage Protection insurance where you can claim if you are not working? - although there may be an exclusion if you resign voluntarily, as you indicate in your other post. All you can do is throw yourself on the mercy of your bank and see if they will be lenient until you get another job.

[chrissa1]

PPI?? That's a joke boxtops. We tried claiming when my husband became ill and found out that because he was self-employed he wouldn't get a penny. The mortgage company knew about his employment status at inception.

[halt41]

I've been to the bank. They have reduced payments from £1,300 to £300 for 6 months. Once I put house on the market they will give me a mortage holiday until it is sold. Gosh, I never expected such marvellous treatment - certainly takes the heat off whilst we finish off house to put it on the market which should be in about 4 weeks all being well. Apparently the main factors that assisted were : (i) I went before we got into arrears with anything and (ii) we have never defaulted on payments to date. Now I've got to set to and get it ready and get another job and get back on the road to recovery. I've been in recovery for a long time and had a relapse unfortunately. Have to dust myself down and get on with it.

[andy-hughes]

The golden rule with any creditors is that they like a dialogue.

If you ignore a debt, you simply join the ranks of the 'won't pay', instead of the 'can't pay' which is where you need to be.

If you approach your creditors with a previously prepared assessement of your assets and liabilities, and confirm your intention to pay, then you are more than likely to receive a positive and helpful response.

A creditor will always prefer to reach an agreement for structured repayment, even at a reduced installment rate, because it is always easier and cheaper than pursuit through legal means.

In debt? Pick up the phone. Always remember - the people to whom you speak are usually not personally involved , as you are, so have a far more detatched and unemotional approach to your crisis, and will be sympathetic and willing to help.

[NiceCupOfTea]

Was alcohol really your issue here? I was reading the answers, and I thought the one a few down was just being jocular until I read one of your final posts.