Ask yourself this question; if your employer goes into liquidation and your income stops, how will you keep the roof over your family’s heads?

The economy is in tatters, businesses are folding and more and more jobs are set to go.  The number of company insolvencies is rising at an alarming rate and now includes such names as Woolworths and MFI.

If your employer goes bust, all the points that you may have built up over the years in terms of redundancy payments are worthless; you are on the statutory scheme.

Details for the new government scheme are sketchy, however it would seem that 6 of the main lenders have simply agreed that in some( probably very few) cases, repossession can be delayed for up to two years, if there is enough equity in the property at outset allow the interest to be “ rolled” into the loan. Of course, at the end of the two years, the borrower has a bucket of extra debt that he now has to service, over possibly, a much shorter period.

In addition, the borrower now has almost certainly built up more expensive short term unsecured debt, just trying to make ends meet.
Unfortunately, this cannot be consolidated by re-mortgaging, even if their financial position has improved. This is because the borrower has entered into an arrangement with the mortgage lender i.e., to roll the interest into the loan, and not to make payments. This is a failure to meet the original contractual obligation on the loan, and as such the borrowers would be regards as sub-prime (credit impaired).

So as usual, one can see that the governments rescue plan is simply a bit more “spin”, that simply delays the inevitable for most people, in most cases.

Clear message here; make your own arrangements, whilst you still can.
And you can; Mortgage Payment Protection is still available, despite what you may have read in the tabloids. Two of the larger providers have recently pulled out of the Mortgage Payment protection market; however there is still a reasonable choice of providers available.

If you lose your job, involuntarily, a Mortgage Payment Protection policy will make up to 12 months mortgage payments, whist you are registered for Jobseekers allowance. At the time of writing, cover is still available up to 125% of your monthly mortgage payment, to avoid building up too much unsecured debt which is mortgage associated.

Mortgage Payment Protection is available through various sources, however, best advice as always; use the internet.