hi i was made redundent recently and i have mortgage protection for 1 year.should i sell or try to keep it.i have no wife or children to think about.ive thought of renting it but dont think i would get enough to cover the mortgage.if i get another job im worried ill be made redundant again in the near future.im mainley worried if i do sell it i might not get another mortgage in future as it will probably be toughter in future.i have lived in the house for 5 years .any thoughts on this would be welcome as im very worried
Unemployed - Should i sell or not?
- Thread starter asdfg
- Start date
Re: should i sell or not?
You have not actually said whether you can afford to keep the mortgage payments going or not. Have you applied for mortgage interest relief that some people can get when they are on unemployment benefits. ? Do you have a lump sum from your redundancy that you could use to supplement the mortgage payments if you rent it out.? Where would you live if you rented it out.? What are the monthly repayments against your income.?
You have not actually said whether you can afford to keep the mortgage payments going or not. Have you applied for mortgage interest relief that some people can get when they are on unemployment benefits. ? Do you have a lump sum from your redundancy that you could use to supplement the mortgage payments if you rent it out.? Where would you live if you rented it out.? What are the monthly repayments against your income.?
Re: should i sell or not?
i could keep the mortgage going for a while with my redundancy.the problem is am i going to be throwing my money away as i may end up having the house repossesed in the long term.i know no one can fortell the future.the monthly repayments against my new income would leave me with little or nothing after bills etc.if i rented it out while on the dole i would loose my dole money.i can move back in with my parents.would i be better off selling?
i could keep the mortgage going for a while with my redundancy.the problem is am i going to be throwing my money away as i may end up having the house repossesed in the long term.i know no one can fortell the future.the monthly repayments against my new income would leave me with little or nothing after bills etc.if i rented it out while on the dole i would loose my dole money.i can move back in with my parents.would i be better off selling?
Re: should i sell or not?
asdfg I can only give you my opinion....if I could make my mortgage payments and pay my bills etc. and be left with little or nothing I would keep my home not sell it. You have more than likely paid a deposit and made repayments for 5 years and also made it your home in that time. I was not aware that you could loose your dole if you rent your home out. With unemployment rising the government can not stand by and see family homes repossessed by the thousand in 12 months time.....I don't believe that senario will be allowed happen. Don't throw the towel in so fast.
asdfg I can only give you my opinion....if I could make my mortgage payments and pay my bills etc. and be left with little or nothing I would keep my home not sell it. You have more than likely paid a deposit and made repayments for 5 years and also made it your home in that time. I was not aware that you could loose your dole if you rent your home out. With unemployment rising the government can not stand by and see family homes repossessed by the thousand in 12 months time.....I don't believe that senario will be allowed happen. Don't throw the towel in so fast.
Brendan Burgess
Founder
- Messages
- 55,590
Re: should i sell or not?
Hi ad
After your Jobseekers Benefit runs out, you will be able to claim Jobseekers Allowance. This will be subject to a means test. The value of your home is ignored for means test purposes.
Rental income would not be ignored, so this would argue in favour of keeping it.
Have you asked the bank to change the mortgage to interest only? This should be your first step.
I presume that the Mortgage Repayment Protection doesn't reduce if you don't make a capital repayment? If it does, then you should not apply for a switch to interest only until the Protection is used up.
If you are still not in a job when you come close to claiming Jobseekers Allowance, then you should consider using most of your savings to reduce your mortgage. Savings in excess of a certain amount do reduce your means tested benefit.
Can you rent a room to a tenant? I don't think that this affects any benefits, but I am not sure about the means test.
It is expensive to sell a house and buy again. Solicitors fees, auctioneers fees, furnishing and stamp duty. If you like the house and its location, I would hold on for the moment.
As Ann said, it is very unlikely that you will be repossessed.
Brendan
Hi ad
After your Jobseekers Benefit runs out, you will be able to claim Jobseekers Allowance. This will be subject to a means test. The value of your home is ignored for means test purposes.
Rental income would not be ignored, so this would argue in favour of keeping it.
Have you asked the bank to change the mortgage to interest only? This should be your first step.
I presume that the Mortgage Repayment Protection doesn't reduce if you don't make a capital repayment? If it does, then you should not apply for a switch to interest only until the Protection is used up.
If you are still not in a job when you come close to claiming Jobseekers Allowance, then you should consider using most of your savings to reduce your mortgage. Savings in excess of a certain amount do reduce your means tested benefit.
Can you rent a room to a tenant? I don't think that this affects any benefits, but I am not sure about the means test.
It is expensive to sell a house and buy again. Solicitors fees, auctioneers fees, furnishing and stamp duty. If you like the house and its location, I would hold on for the moment.
As Ann said, it is very unlikely that you will be repossessed.
Brendan