A mortgage is a commitment for many years. Usually, when we take it, we have a well-paid job and a regulated financial situation. A housing loan allows us to buy a dream property.

The loan period for a mortgage, however, lasts even 35 years. What if we lose our job during this time? We explain what you can do with a mortgage after losing your job.

What about a mortgage after losing a job?


Our first reaction will probably be shock related to unpleasant information and fear of what to do next. What will we pay the mortgage for ? Losing your job will make sure that we run out of funds to pay back the loan installment.

After dismissal, people with a mortgage often break down and fall into debt, without paying installments on time and not informing the bank of the difficult financial situation they are in. However, this is not a good solution – debt will increase and we will not know how to get out of the debt loop. What should you do with credit after losing your job?

Support for relatives in paying off a mortgage

If you can count on the support of your loved ones, they will definitely help you overcome financial difficulties. Let’s not be afraid to present our situation to the family and ask for help.

Even if your loved ones don’t support us financially, maybe they will do it in a different way, e.g. help to find a job or contact a person who will be able to help us.

So before we start considering the darkest scenarios – let’s turn to the loved ones for help.

An honest conversation with the bank is a must

An honest conversation with the bank is a must

In case of problems with the repayment of any loan, contacting the bank is a must. Although it may seem to us that our problems are irrelevant to the bank and only the installments are paid regularly, we cannot pretend that there is no problem.

The borrower must be a mandatory and responsible person, so he can not simply stop paying off his debts. Cessation of repayment of installments and lack of contact with the bank may result in termination of the loan agreement by the bank and summoning a bailiff. We should remember that we can negotiate with the bank – not with the bailiff.

It is best to go to the bank before the first installment is repaid. If we decide to do this, the bank will offer us extending the loan period or credit holidays.

Extending the loan period

Extending the loan period

The mortgage loan repays for many years, but in the case of justified problems with repayment, this period can be extended further. If we extend the loan period, the loan installment will be lower, but we will repay the loan longer. However, this is a good solution if you lose your job, if you get the support of your loved ones or we have some savings thanks to which we will be able to pay off a low monthly installment.

This option will not be available to persons who have just taken out a mortgage for the maximum period and have already encountered problems with repayment.