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Off set mortgage possibility and advice needed

Abbey1
Abbey1 Posts: 34 Forumite
Part of the Furniture 10 Posts Combo Breaker
edited 24 March 2013 at 12:54PM in Mortgages & endowments
I don't think that there is an easy way of explaining this. But I will try. I am currently selling my house with the intention of buying a cheaper property which will pay off my mortgage. However, I have been paying for mortgage protection insurance for the last six years in case of redundancy and it looks as though I may be made redundant this year. I wondered if it would make sense to take advantage of the £24,000 insurance that I would receive if this happens, to get an offset mortgage on the new house so that in the event that I'm not made redundant I would have little or no mortgage to pay because the savings would be offset against the mortgage and if I am made redundant I could move the savings out of the offset account and then the insurance would kick in and pay. Complicated but if anyone can advise me if this is a sensible course of action or whether there is a better way please let me know. Thank you.
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