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Help with mortgage payments while out of work?

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I've worked freelance for 9 years and have seen work dry up over last 9 months. I decided to sell my house and buy a smaller one to reduce my outgoings (I'm a single parent with two young kids). My house is under offer but I haven't yet found somewhere to buy. My current freelance job is about to end and I don't have anything lined up. I've got enough money for a couple of months in the company business account but am trying to prepare myself for a sticky period. Should I go ahead with the house sale and keep some of equity back to live off until I get more work? Can I claim housing benefit either if I go ahead with the house sale and go into rented (but with over £100k equity sitting in bank), or should I slow down on house sale and carry on paying my mortgage for now? Can I claim housing benefit to help pay the mortgage? Also, if I were to ask for a mortgage holiday, would that affect my credit rating or future mortgage deals once I'm on my feet again? Sorry, lots of questions, just trying to work out what to do...

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