Losing your job while paying off your mortgage loan – what should you do?

A mortgage can be taken for up to 35 years, and during this time a lot will change in everyone’s life. Take for example a woman who decides to take such a loan at the age of 25 and will pay her last installment at the age of 60.

Quit your job while paying off your mortgage


He will make a commitment after spending only a few years on the labor market and will pay it back a moment before or after retirement. At this time, there is a good chance that she will lose her job at least once – probably not even through her own fault.

What should you do in such a situation so that you do not have delays in paying off the loan and do not get into even more financial trouble? Mortgage and a change of job – how to deal with it?

Do not run away from the creditor, but inform him about problems

The first instinct for many people in the event of job loss and related financial problems may be the so-called burying their heads in the sand. In the context of a mortgage, this will result in non-payment of installments, rejection of calls from the bank and throwing out letters. However, this is the worst course of action that we can decide on.

It must be remembered that the mortgage is secured by a mortgage placed on the property for the bank. This means that if the borrower fails to pay the contract, the bank may take over and sell the mortgaged property.

Therefore, running away from the creditor may end even worse in this case than in the case of cash loans – by losing a roof over your head. If we start talking to the bank, and on our own initiative (preferably before delays in repayment of the loan), there is a good chance that we will be able to get out of this unfortunate situation unscathed.

The loan can be restructured

The loan can be restructured

The answer to the question “mortgage and a change of job – what to do?” May be the restructuring of the loan. The bank always informs about such a possibility of a loan on the final request for payment, but it can also be done earlier. There are two most popular forms of loan restructuring: credit holidays and extension of the repayment period.

This first solution works best when we need several months to find a new job, but we will probably earn at least the same level as before. Credit holidays allow you to not repay (with the bank’s consent) loan installments for up to several months without suffering any negative consequences.

You can think about extending the repayment period if you have already found or expect to find only a job offering a lower salary than before, which will permanently reduce our financial possibilities. Thanks to this, we are increasing the total cost of credit, but we are reducing installments, which will allow us to repay our debts on time, despite the worse paid work.