What should I do about my mortgage if I lose my job?

Q I think I am about to be made redundant from my job - I work for a big pharmaceutical company which is firing a lot of employees in the UK. Although I will receive a small payout, it won't be very much, and I am worried because I have just completed on a new home. I need my salary to pay my mortgage instalments. Do you have any advice for someone in my position?

MW

A First of all, talk to your union representative at work to make sure that if you do receive a redundancy notice, you are properly helped and advised. Secondly, have a look at the mortgage offer from your building society. You may have taken out mortgage protection, an insurance policy which will pay your monthly instalments if you lose your job or are too ill to work.

Check the details of this policy, as there may be a three-month exclusion period - meaning you won't receive any help for the first three months. Also, you may need to be applying for benefits in order to qualify. If in doubt, give your mortgage company a ring.

If you don't have this protection, it is still worth taking to your mortgage company to warn them about what has happened. Don't wait until the debts and arrears mount up - they may be able to reschedule your repayments so that they are much lower than normal for the next six months or until you find a new job.

Your next step depends on how quickly you think you might find another job - do you have transferable skills, or are to the areas you have been working in very specialist? It may be worth signing up with a couple of recruitment agencies in order to ensure that you have your CV in circulation to as many companies as possible.