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What should I do after I am made redundant?

Losing your job to redundancy is unfortunately a very common occurrence. In 2021, unemployment as a whole has risen to 5% but there is a belief that this could rise even high to 7.5% by the middle of 2021. The impact this can have on your income has a direct impact on your ability to meet your mortgage payments and the risk of losing your home to repossession becomes all too real. Spring, however, are on hand to help and advise. We appreciate and fully understand the difficult situation you may have been put into but, as property experts, our experienced team can help and are with you every step of the way.

The first step you should take is to contact your mortgage lender or bank and make them aware of your situation by highlighting this as early as possible. By flagging the change in your employment and thus your income, you may be able to renegotiate the terms of your mortgage. Typically, lenders can give you the chance to move to an interest-only loan, potentially extend the terms of your mortgage or even offer a payment holiday. The most important thing to do is talk to them and early communication is key.

There is also the possibility that you may also be covered by payment-protection insurance - sometimes known as Accident, Sickness and Unemployment (or ASU) cover. Mortgage Payment Protection Insurance (MPPI) can cover your mortgage repayments within three months of your income stopping and can continue to cover it for up to 12 months. Being mis-sold PPI or not being covered is more common than you may expect, so, as with everything else, check with your mortgage lender or bank before progressing.

If you fail to keep up with your mortgage payments, you may face the risk of repossession; typically repossession occurs when mortgage payments are in arrears of three months. To find out more about avoiding repossession, contact a member of our team.

Planning For After a Redundancy

One of the most important things that you can do when you have been made redundant is immediately start planning for the future - even better if you can plan ahead of time.

Planning for something as sudden as redundancy can be difficult, but if you believe that it could very well be a possibility, having these contingencies in place will help you greatly in the long run.

In addition to this, if you believe that you may be liable to be made redundant at any point, (whether this is due to the industry you are in, a sudden development of technology, your company moving or closing down etc.) letting your mortgage lender know early can be incredibly useful. They may even tell you that applying for a mortgage is not the right decision and that renting is better suited to your needs.

Securing Finances After Redundancy

With redundancy, your income comes to a stop and getting it started again can be difficult, especially considering how volatile the job market can be. At the best of times, redundancy can be incredibly expensive for anyone; nowadays that is only getting worse. Getting ahead of the curve and getting financially secure, to not just handle your mortgage payments but also your other living expenses, may seem like a daunting task but there is always a solution.

One of the most effective, quick and trouble-free methods of securing your funds is by selling your property to a home-buying service such as Spring.

Because Spring are a private cash-buyer, we can buy your property and have the proceeds in your account in as little as seven days. This can help you to forego so much of the trouble attached to selling your home in the more conventional way on the open market. Spring’s home buying service eliminates any hidden fees and the constant threat of the chain breaking. Our simple, quick and easy home buying service gives you control of your sale, helping you get back on your feet and move on to the next stage of your life.

To learn more about how Spring can potentially help you as you navigate this difficult period, you can call us at 020 8629 7877 or email us at [email protected]
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After we receive your details, one of our Property Advisors will call you within 24 hours to confirm details about your home and to explain our process if you choose to proceed. For more about selling your home to Spring see How it Works.

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