Life becomes hard enough when you lose your job, but what if on top of all that stress you also have a mortgage that you are worried you can no longer afford? Losing your job does not necessarily mean you will lose your mortgage, and there are certain actions you can take to preserve your mortgage and keep your home during your period of unemployment.
Insurance
Ask your lender if your mortgage has insurance coverage.
Review any payment protection insurance and short term income protection policies that may cover your missing payments. It is important to make a claim as soon as possible as there may be a waiting period before receiving a payout.
Payment Breaks
Contacting your bank or other lender that you set up your mortgage with and asking them for options for breaks on your mortgage. Some of these options may be a repayment holiday to give you a break on your mortgage while you seek a new source of income. Another could be just paying interest until you once again find work.
State Assisted Supplemental Income
There is a chance you may qualify to receive assistance in paying your mortgage in the form of a Mortgage interest Supplement. In order to receive this payment you must meet the following criteria:
- You originally purchased the house at a time where you could have realistically made the repayments
- Your house is not up for sale
- The mortgage must be considered “reasonable” in terms of affordability, so no mansions
Temporary Employment
It would also be a good idea to acquire some form of temporary part time employment if you are struggling to find new work in your desired field. While full time employment is obviously preferred, all income helps when it comes to making payments, so looking for a part time job to help you get by and continue making payments on your mortgage will still be even a little bit helpful.
Revise your Budget
Another great technique for not just aiding in continuing to afford your mortgage, but to save money in general, is to revise your budget and adjust your spending habits.
There may be certain things in your life you spend money on that are not entirely necessary, such as certain entertainment subscriptions, frequently going out to eat, and vacations.
By reducing the amount of money you are spending on a regular basis you will free up more of your income or savings to be used towards paying off your mortgage payments until you are able to find full time employment once more.