Redundancy and mortgage payments

Contact your mortgage lender

Get in touch with your lender as soon as you can.

This may seem scary, but they can only help you if they know what is happening.

Remember:

• They deal with these issues every day
• They want to support you
• They should help find an agreement you can afford

Your options could include:

• Moving to an interest-only loan
• Taking a mortgage payment holiday
• Extending the term of the mortgage

These options can take off some of the pressure while your income is reduced.

Government mortgage help: Support for Mortgage Interest (SMI)

You may be able to apply for Support for Mortgage Interest (SMI) payments if:

• You are a homeowner
• Your mortgage is less than £200,000
• You have been unemployed for more than 39 weeks
• You get benefits, like:
• Jobseeker’s Allowance
• Income Support
• Employment and Support Allowance (ESA)
• Universal Credit
• Pension Credit

SMI is a loan and must be paid back with interest when:

• You sell your property or
• Give it to someone else

SMI is meant to help with interest payments, not arrears.

Find out more about SMI and if you're eligible for government mortgage help.

Council Tax Reduction

You may be able to get help paying your council tax while you are out of work.

This is called Council Tax Reduction (CTR).

• Each local authority has its own scheme
• The rules vary depending on where you live
• Contact your local council to find out more

Here are few general rules that apply:

• You must be the person responsible for paying the council tax
• You must live in the property

Apply for Council Tax Reduction.

Mortgage arrears and redundancy

Contact your lender as soon as you can if you are already behind on mortgage payments.

They may apply to the county court for possession of your home if you do not.

We can help you if you are falling behind on mortgage payments.

Find out more about dealing with mortgage arrears.