Supporting job loss and redundancy

To ensure that we do our best to support you, it is important that you let your mortgage adviser and lender know of your job loss or redundancy as soon as possible. 

How will losing my job affect my mortgage?

Losing your job can be a stressful and uncertain time, but there are steps you can take to protect your mortgage and your home.

First, check out our article about what you can do to pay for your mortgage if you’re made redundant.

Contact your adviser as soon as possible

The sooner you let your adviser and lender know that you've lost your job, the sooner they can start working with you to find a solution. Many lenders have programmes in place to help borrowers who are struggling to make their payments, such as deferment. 

More commonly associated with the term ‘mortgage holiday,’ deferring essentially means moving your missed payments to a later date or temporarily pausing them. Whether you qualify for this will depend on your lender and a few conditions, such as your mortgage contract and financial situation.

What to do after losing your job:

• Take some time to process the news: After losing a job, it's common to experience a range of emotions, including anger, despair, and worry. Allow yourself time to process the news before you decide what to do next.

• Assess your rights: You could qualify for a redundancy package depending on your circumstances. Your employer should have a procedure outlining the circumstances in which they offer redundancies, and if you've worked for them for at least two years, they must offer a fair redundancy.

• Assess your financial situation: Once you've had some time to process the news, it's important to take a close look at your finances. Do you have measures in place to ensure you can continue to pay your monthly bill? Assessing your income, expenses, and savings is key here. If you have a financial adviser or accountant, it’s worth reaching out to them to talk through your options.

• Make a budget: Once you know where you stand financially, it's time to create a budget to plan how you’re going to cover the time spent without any income. This will help you track your outgoings and expenses so that you can make sure you're spending within your means .

• Cut back on your expenses: If you're struggling to make ends meet, you may need to cut back on your expenses. This could mean eating out less, or canceling your gym membership.

• Look for ways to subsidise your finances: If you're able to, you may want to look for ways to boost your finances in the interim. This could mean taking on a part-time job or freelancing.

• Don't be afraid to ask for help: If you're finding coping with the financial impact of losing your job challenging, don't be afraid to ask for help. There are a number of organisations that can provide financial assistance as well as several government benefit schemes, although these come with specific criteria.

Resources

Gov.uk - Being made redundant: finding work, claiming benefits, and managing debts

Gov.uk - Find your nearest Jobcentre

National Careers Service - The National Careers Service offers assistance to those looking for work

Do you require additional support?

To help us tailor your homebuying journey to your needs, let us know if you have any specific requirements or have recently experienced a change in your circumstances.

If you have any additional accessibility issues that you’d like to make us aware of, or if there’s anything that you think we can improve on, click here.

Useful links