Mortgage support after losing your job: your options

Before you miss a payment, contact your lender's collections or financial difficulty team. A single conversation, before arrears begin, opens far more options than one after. Lenders have duties under FCA rules to consider forbearance — and most have a dedicated team for situations like redundancy.

• A payment holiday of 1–6 months
• A switch to interest-only for a defined period
• Extending your mortgage term to reduce monthly payments
• Capitalising arrears once you're back on your feet

Most major UK lenders have signed the Mortgage Charter. It gives borrowers extra options without a credit-file impact, including switching to interest-only for 6 months, extending the term, or locking in a new fixed rate up to 6 months before your current deal ends. Ask your lender specifically if the Mortgage Charter applies to your case.

If you're claiming Universal Credit, JSA, ESA, Pension Credit or Income Support, you may qualify for SMI after a waiting period (currently 3 months on UC). SMI is a loan from DWP that pays the interest on your mortgage, up to a capped balance. It's repaid when you sell the property or transfer ownership — interest is charged on the loan itself at a rate set by HM Treasury.

• Eligible mortgage balance: up to £200,000 (£100,000 for Pension Credit)
• Interest rate used: a fixed reference rate set by HM Treasury
• Waiting period: usually 3 months from the start of your UC claim
• Repayment: when the home is sold or transferred

UC does not pay your mortgage capital — only SMI on the interest, after the waiting period. If you have a partner who works, even part-time, you usually cannot qualify for SMI because the rules require no household earned income during the qualifying period. Check carefully before you assume eligibility.

• If your mortgage payment is due in the next 14 days: phone your lender today, before the payment date.
• If your fixed rate is ending: ask about locking in a new product early under the Mortgage Charter.
• If your partner still works: SMI is usually unavailable but lender forbearance still is.
• If you have an offset or flexible mortgage: check whether you can use built-up overpayments to pause repayments.
• If you have a buy-to-let: SMI doesn't apply, but speak to your lender about a temporary payment plan.
• If you have payment protection insurance: check the policy — many cover redundancy after a short waiting period.

• Don't use credit cards or high-cost loans to keep up mortgage payments — it usually makes things worse.
• Don't ignore letters from your lender — engagement is what unlocks options.
• Don't be pressured into selling quickly without independent advice.
• Don't take equity release without speaking to an independent adviser.

• Phone your lender's financial difficulty team this week.
• Apply for Universal Credit to start the SMI qualifying period.
• Speak to StepChange or Citizens Advice for free, independent debt advice.
• Use the checker to see what household support you may also qualify for.