repay or claim on ppi

freddieboyfly

Hi all. Heres the situation. I am being made redundant on the 31st august. I cant find a job yet but have enough redundancy money to pay my mortgage off. Its proper worrying me having debts and no work. Santander informs me that my ppi covers me for £600+ if im made redundant after 28 days unemployed. Could i pay all but £1000 and still claim? Have been paying £80+ for this ppi for 6 years ? I know it seems a no brainer but i want other peoples input please. Thanks. Nick

kingstreet

AFAIK if you reduce your mortgage payments, they will reduce your insurance benefit payments accordingly.

Leave your redundancy money intact and get some interest on it while you claim the maximum you are entitled to from your protection plan.

Chances are you'll only be paid these benefits for upto twelve months anyway. If you don't have a job by then, you'll need the redundancy money (or what's left of it) to help you pay your bills. Paying off the mortgage means you'll commit that money now with no way of getting it back if the worst happens.