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Harold Said:

Advice on what to do when you're made redundant and can't pay your mortgage?

We Answered:

Firstly, check your mortgage paperwork and see if you have a mortgage that allows you to take payment holidays, many of them do. If so then call them asap and apply to start one. Some of them take a month before you can start your payment holiday, so do it asap.

If not then your first port of call should be the CAB (Citizens Advice Bureau). Go along to see them with details of all your outgoings and income, amounts, dates and reference numbers, etc, and ask for their help to negotiate a deal with your mortgagees and other debts. The CAB are very experienced debt counsellors and they are well respected by banks, building societies and other credit providers. They will be able to negotiate you a good deal. In the current economic climate they are busy though, so you may need to wait a while to see someone - so make the appointment now.

Don't forget also to make an appointment with an adviser at the Job Centre where they can advise him about job vacancies as well as help you with application forms for benefits. Your local Council can also help you with Council Tax Benefit.

Annie Said:

Are Mortgage Protection programs a scam?

We Answered:

First of all, when you say mortgage protection do you mean from a private insurance company through an agent? Or do you mean as part of the loan from your mortgage company? If you are being offered mortgage protection from the mortgage company..RUN. The policy will be overpriced and will not pay you, but instead pay the mortgage company. Mortgage protection insurance is basically just a term life policy with a few bells and whistles. It is a product that is easily available and there are MANY companies to chose from so it's quite competitive. Mortgage insurance is a MUST HAVE. Just get several quotes and make sure you understand all the benefits offered on each policy. Compare apples to apples. Some mortgage protection protection policies only pay a benefit when you die. While others can help you pay the mortgage if you become disabled or lose your job as you mention. Some even offer a return of 100% of what you paid in at the end of the term if outlive the policy...Like I said compare apples to apples.

Kent Said:

Mortgage protection.....?

We Answered:

Although Mortgage Protection is great, the cost runs fairly high.

IMO a term life insurance policy will be much cheaper for the same amount of money. Also your loved ones will have a choice to dispurse the funds as needed