{"id":1614,"date":"2021-05-13T19:15:29","date_gmt":"2021-05-13T13:45:29","guid":{"rendered":"https:\/\/www.extramilefinance.uk\/blog\/?p=1614"},"modified":"2021-05-13T19:15:34","modified_gmt":"2021-05-13T13:45:34","slug":"how-to-manage-mortgage-when-unemployed","status":"publish","type":"post","link":"https:\/\/www.extramilefinance.uk\/blog\/how-to-manage-mortgage-when-unemployed\/","title":{"rendered":"How to Manage Mortgage When Unemployed?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_52 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69e2f0beb059e\"><span class=\"\"><span style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69e2f0beb059e\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.extramilefinance.uk\/blog\/how-to-manage-mortgage-when-unemployed\/#5_Ways_to_Cover_Mortgage_After_Unemployment\" title=\"5 Ways to Cover Mortgage After Unemployment\">5 Ways to Cover Mortgage After Unemployment<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.extramilefinance.uk\/blog\/how-to-manage-mortgage-when-unemployed\/#%E2%97%8F_Contact_the_Lender\" title=\"\u25cf&nbsp;&nbsp;&nbsp; Contact\nthe Lender\">\u25cf&nbsp;&nbsp;&nbsp; Contact\nthe Lender<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.extramilefinance.uk\/blog\/how-to-manage-mortgage-when-unemployed\/#%E2%97%8F_Insurance_Covers\" title=\"\u25cf&nbsp;&nbsp;&nbsp; Insurance\nCovers\">\u25cf&nbsp;&nbsp;&nbsp; Insurance\nCovers<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.extramilefinance.uk\/blog\/how-to-manage-mortgage-when-unemployed\/#%E2%97%8F_Universal_Credit\" title=\"\u25cf&nbsp;&nbsp;&nbsp; Universal\nCredit\">\u25cf&nbsp;&nbsp;&nbsp; Universal\nCredit<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.extramilefinance.uk\/blog\/how-to-manage-mortgage-when-unemployed\/#%E2%97%8F_Give_Up_Endowment_Policy\" title=\"\u25cf&nbsp;&nbsp;&nbsp; Give\nUp Endowment Policy\">\u25cf&nbsp;&nbsp;&nbsp; Give\nUp Endowment Policy<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.extramilefinance.uk\/blog\/how-to-manage-mortgage-when-unemployed\/#%E2%97%8F_Credit_Cards_and_Loans\" title=\"\u25cf&nbsp;&nbsp;&nbsp; Credit\nCards and Loans\">\u25cf&nbsp;&nbsp;&nbsp; Credit\nCards and Loans<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.extramilefinance.uk\/blog\/how-to-manage-mortgage-when-unemployed\/#Alternative_Solutions_for_Paying_Mortgage_When_Unemployed\" title=\"Alternative Solutions for Paying Mortgage When\nUnemployed\">Alternative Solutions for Paying Mortgage When\nUnemployed<\/a><\/li><\/ul><\/nav><\/div>\n\n<p>The COVID-19 pandemic has drastically increased global\nunemployment. Many UK citizens have lost their jobs. However, lenders require\nregular repayments for loans and mortgages. Therefore, the expenses\ncontinuously pile up.<\/p>\n\n\n\n<p>Moreover, money experts with emergency funds for almost six to\ntwelve months have started reducing them. But, eventually, they have to take\nout cash from the savings account. Therefore, the problems keep increasing\nuntil the pandemic is resolved.<\/p>\n\n\n\n<p>Under such circumstances, money borrowers have a few options to\navail relief on repayments. These include availing government and insurance\nbenefits, contacting the lender, increasing sources of revenue, etc.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"5_Ways_to_Cover_Mortgage_After_Unemployment\"><\/span>5 Ways to Cover Mortgage After Unemployment<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"%E2%97%8F_Contact_the_Lender\"><\/span>\u25cf&nbsp;&nbsp;&nbsp; Contact\nthe Lender<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The first step to managing a mortgage is contacting the lender\nand informing about the current income situation. During the conversation,\ndiscuss the total arrears, focus on regular repayments in the past, mention\nminor or negligible defaults, etc.<\/p>\n\n\n\n<p>Also, uncover the exact mortgage amount, ask for a reasonable\ntime to recover shortfalls, and mention charges incurred on defaults. After the\ndiscussion with the lender, you might arrive at one of the three possible\noutcomes.<\/p>\n\n\n\n<p>These include increasing the tenure of the mortgage, switching\nto interest payments only, or making temporary arrangements for payments. The\ndiscussions also mention the affordable amount. It is better than making\nnegligible payments as it helps in the reduction of arrears.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"%E2%97%8F_Insurance_Covers\"><\/span>\u25cf&nbsp;&nbsp;&nbsp; Insurance\nCovers<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Accident, Sickness, and Unemployment insurance is also referred to as Mortgage Payment Protection Insurance (MPPI). It can help recover mortgage payments under three circumstances: accident, sickness, or redundancy.<\/p>\n\n\n\n<p>The details of the insurance policy are often in the paperwork initiated between the borrower and service provider. However, if you can&#8217;t find the necessary papers, contact the broker or lender that offered the insurance while taking out the mortgage.<\/p>\n\n\n\n<p>Unfortunately, payments through MPPI don&#8217;t occur if you are\nstruggling at work. At this point, make sure to compare the existing insurance\nwith competitors and avail better deals before proceeding with the benefits.<\/p>\n\n\n\n<p>Also, don&#8217;t forget to measure the advantages of MPPI against\nother unemployment, sickness, and accident policies. These provide a pre-agreed\nmonthly income for almost two years based on monthly incomes and not the\nmortgage.<\/p>\n\n\n\n<p>Alternatively, you can choose comprehensive income protection\ninsurance against accidents or sickness. These provide a pre-determined amount\nbased on the income until you retire or resume work. Make sure to check these\ncovers in your paperwork and with family members.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"%E2%97%8F_Universal_Credit\"><\/span>\u25cf&nbsp;&nbsp;&nbsp; Universal\nCredit<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>You can recover interest payments on a mortgage with Universal\nCredit. However, it comes with a few clauses. Primarily, qualifying for it requires\nno part or full-time income, i.e., earned income. You would also become\nineligible with ongoing benefits such as Statutory Maternity Pay or Statutory\nSick Pay.<\/p>\n\n\n\n<p>Also, the money for eligible candidates is based on the\ninterest rate applied on an outstanding mortgage and paid directly to the\nlender. The maximum amount dispatched through Universal Credit is \u00a3200,000.<\/p>\n\n\n\n<p>Moreover, the lender receives the payment after a three-month waiting period. However, if you become employed during this tenure, the Universal Credit is not granted. Alternatively, you can choose <strong><a href=\"https:\/\/www.extramilefinance.uk\/loans\/unemployed.html\">guaranteed loans for unemployed<\/a><\/strong> after starting a part-time job or receiving benefits.<\/p>\n\n\n\n<p>An important fact to remember is that payments for Universal\nCredit diminish as income increases. Primarily, the monthly payment\nincorporates housing costs, childcare, child costs, support for the disabled,\ncosts for carers, and more.<\/p>\n\n\n\n<p>You can even receive an additional amount for people suffering\nfrom a health condition or disability and cannot work. However, often people\nwho have a disability receive higher compensation. The basic amount received by\nyou or homemakers is referred to as Standard Allowance.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"%E2%97%8F_Give_Up_Endowment_Policy\"><\/span>\u25cf&nbsp;&nbsp;&nbsp; Give\nUp Endowment Policy<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>An endowment mortgage incorporates an insurance policy and investment. It allows repaying the interest accrued on the lump sum borrowed. Therefore, it helps to avoid making payments for a large amount. The endowment policy is an additional savings product of this mortgage.<\/p>\n\n\n\n<p>If you have an endowment mortgage and are currently unemployed,\nselling or giving up your policy would provide a cash influx. The money can\nhelp to repay existing debt and manage the mortgage loan.<\/p>\n\n\n\n<p>Simultaneously, you would require an alternative live cover and\nother methods of repaying the remaining mortgage. Additionally, endowment\npolicy service providers might even levy costs or penalties for ending it.<\/p>\n\n\n\n<p>Therefore, it would prove much more beneficial to ask a\nfinancial consultant or lawyer before selling the endowment policy. However,\nthe Association of Policy Market Makers (APMM) would provide the right advice\nfor the next steps if you have made up mind.<\/p>\n\n\n\n<p>You even have to inform the lender, bank, or financial about\nthe methods of repaying the remaining debt through an email or letter. However,\ndo clarify the details and explain the circumstances to the lender before\nselling the policy.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"%E2%97%8F_Credit_Cards_and_Loans\"><\/span>\u25cf&nbsp;&nbsp;&nbsp; Credit\nCards and Loans<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>It is surprising to learn that credit card service providers\nwilling to offer their cards to an unemployed person with a recurring monthly\nincome. Moreover, they provide cards even if a person doesn&#8217;t have a business\nor full-time employment.<\/p>\n\n\n\n<p>The service providers offer unemployed credit cards to\nfreelancers, people working part-time jobs, or rental income. Alternatively, if\nyou don&#8217;t qualify for an unemployed credit card, the option for secured credit\ncards remains open.<\/p>\n\n\n\n<p>Unfortunately, secured credit cards would require collateral.\nMoreover, the card would rely on the deposited collateral. Many people offer a\nfixed deposit as collateral to avail of a secure credit card. <\/p>\n\n\n\n<p>Moreover, you can switch to a standard credit card and close\nthis account anytime you, please.<\/p>\n\n\n\n<p>Similarly, secured loans for the unemployed would require\ncollateral such as a property or vehicle. The lender risk is mitigated through this\nform of a loan.<\/p>\n\n\n\n<p>It means the lender can liquidate the assets to receive the\ndebt amount if you fail to make repayments. Moreover, the loan amount would\ndepend on the collateral valuation. Additionally, the lender would also check\nthe borrower&#8217;s affordability before giving the amount.<\/p>\n\n\n\n<p>Unfortunately, the amount provided against collateral is small\ncompared to expectations. Besides these options, you can avail of guaranteed\nunemployment loans.<\/p>\n\n\n\n<p>A significant advantage of taking credit cards and loans for\nunemployment is that the interest rate is lower because they mitigate lender\nrisks. Therefore, <strong><a href=\"https:\/\/www.extramilefinance.uk\/loans\/unemployed.html\">unemployed loans<\/a><\/strong>\nand credit cards offer a cheaper bargain than other options and offer ease of\navailability.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Alternative_Solutions_for_Paying_Mortgage_When_Unemployed\"><\/span>Alternative Solutions for Paying Mortgage When\nUnemployed<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Besides generating sources of income to repay the mortgage, you\ncan even focus on benefits to save money on tax. For example, you can make\nclaims for tax credits if you receive Working Tax Credit or Child Tax Credit.<\/p>\n\n\n\n<p>Additionally, loss of job or unemployment opens the door to new\nUniversal Credit claims. Therefore, before applying for the tax credit, take a\nfinancial consultation. The new-style Jobseeker&#8217;s Allowance (JSA) is available\nto people that have made Class 1 National Insurance Contributions (NICs) for\nthe past two years. <\/p>\n\n\n\n<p>The compensation is received by the building society, credit\nunion account, or bank for almost six months. So, you might lower your\nexpenses. Moreover, the new-style JSA is not affected by the spouse&#8217;s income.\nTherefore, you might reduce your financial debt in no time.<\/p>\n\n\n\n<p>With the same condition as the new-style JSA, employees that\nrecently became redundant can claim statutory redundancy pay. Additionally, you\nshould check for contractual redundancy pay in the employment contract.<\/p>\n\n\n\n<p>If you are more than 55 years old, you have the option of\ntaking a personal pension. However, it would only become possible with a\ndefined contribution pension. In definition, it means pension pots that have\nsummed with regular payments.<\/p>\n\n\n\n<p>However, before taking a portion or full amount of personal\npension for recovering from mortgage debt, it is essential to ascertain risks.\nThese factors would include probable tax, recovering regular household expenses\nuntil death, care costs, and the effect on ongoing benefits.<\/p>\n\n\n\n<p>Additionally, work on budgeting and managing current household\nexpenses. For example, you can save money on utilities and broadband by\nswitching service providers, avoiding late payments, removing unutilized\nservices, etc.<\/p>\n\n\n\n<p>Similarly, you can save on gas and electricity bills by using energy-efficient methods, seeking grants, opting for fixed priced tariffs, and scheduling payments. These practices of the budget would help to diminish expenses and manage mortgage repayments.<\/p>\n\n\n\n<p>Besides these options, you can choose <strong><a href=\"https:\/\/www.extramilefinance.uk\/loans\/bad-credit-loans\/installment.html\">online instalment loans<\/a><\/strong> to recover from existing mortgages and other debt payments. After these steps, visit the Citizens Advice Bureau (CAB) to take debt advice. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>The COVID-19 pandemic has drastically increased global unemployment. Many UK citizens have lost their jobs. However, lenders require regular repayments [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":1615,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[165,16],"tags":[63,67,212,211,143],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.extramilefinance.uk\/blog\/wp-json\/wp\/v2\/posts\/1614"}],"collection":[{"href":"https:\/\/www.extramilefinance.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.extramilefinance.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.extramilefinance.uk\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.extramilefinance.uk\/blog\/wp-json\/wp\/v2\/comments?post=1614"}],"version-history":[{"count":1,"href":"https:\/\/www.extramilefinance.uk\/blog\/wp-json\/wp\/v2\/posts\/1614\/revisions"}],"predecessor-version":[{"id":1616,"href":"https:\/\/www.extramilefinance.uk\/blog\/wp-json\/wp\/v2\/posts\/1614\/revisions\/1616"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.extramilefinance.uk\/blog\/wp-json\/wp\/v2\/media\/1615"}],"wp:attachment":[{"href":"https:\/\/www.extramilefinance.uk\/blog\/wp-json\/wp\/v2\/media?parent=1614"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.extramilefinance.uk\/blog\/wp-json\/wp\/v2\/categories?post=1614"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.extramilefinance.uk\/blog\/wp-json\/wp\/v2\/tags?post=1614"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}