Concerned you may be made redundant? Then there are a few steps you can take to help keep up with your mortgage payments.
If your employer is going to make redundancies they should first go through a consultation period, giving you time to prepare yourself and take to give yourself the best possible chance of meeting your mortgage payments.
If you fear you may be made redundant, it’s important that you have an idea of whether you are entitled to any redundancy payment and if so, what that might be. Take a look at your staff handbook or company literature to see what policy your employer has with regard to redundancy, as it may be that they offer a package that offers more than the statutory requirement.
If you want to know what statutory redundancy you are entitled to, then the government website has an online tool you can use to calculate your payment, it takes into account a number of factors including your age, length of service and pay.
Cut your bills
If you fear that you are at risk of redundancy, take action now to reduce your bills to the absolute minimum, cutting out any unnecessary expenses from gym memberships you’re not using to magazine subscriptions. Ask for a list of your direct debits from your bank and go through it with a fine tooth comb, so you know what you’re paying and why. Just remember you need to notify the appropriate business before stopping a direct debit, don’t simply cancel them at your bank, put a notification of your intentions in writing first.
In addition to cutting down on your non-essential bills, save as much as you can in the time leading up to your date of redundancy to give you as much financial ‘breathing space’ as possible over the coming months.
Take a close look at any insurance policies you have to see if they can help pay your mortgage or help you to meet other financial responsibilities you have. It may be that your mortgage came with a payment protection plan that could assist you now. Look too, to see if your credit card comes with a similar pay protection plan that could cover for payments for the time being.
Talk to your mortgage provider
Talk to your mortgage provider about what’s happening, as you may be able to take a break from your mortgage payments until you’ve found a new job. Also ensure you understand your mortgage and check whether you could rent out your house or take in lodgers to help you meet your mortgage payments. Just remember that any additional income you make could affect your benefits entitlement.
If you need mortgage solutions, it might also help you to talk to an experienced mortgage adviser to learn more about your options and find the right way forward for you.
Another key thing for you to do is to find out what benefits you are entitled to. A good first port of call here is your local Citizens Advice Bureau. Remember you’ll need to have a certain amount of information to hand such as your income, savings and childcare costs to get an accurate view of what benefits you may be able to claim.
Understand your budget
It’s also important that you work out an accurate budget for the coming months. The Citizens Advice Bureau also has a helpful online tool to assist you in working out a monthly budget. It’s important you have absolute clarity about the amount of money you have going in and out of your bank account.
So there you have a few ideas on how to approach making your mortgage payments if you are at risk of redundancy, from reducing your bills to knowing your redundancy payment and benefits entitlement.