Redundancy. Pay off mortgage?

mistert_3

I am soon to be made redundant and will receive enough to pay off my mortgage. I understand that I can't claim unemployment if I have cash in the bank. What is the best thing for me to do?

busydaffodil1

Its how important security is for you.
Personally, I would pay off the mortgage. But I do have MASSIVE issues with feeling secure & free from debt.
Some would say enjoy yourself for a year or two, buy a business or holiday home, etc etc
For me....mortgage paid off would be priority.

zzzLazyDaisy

Also do check the terms of the redundancy payment. It may include a payment in lieu of notice, if so you will not be able to claim state benefits during the notice period.

If I were in your position I'd pay a lump sum off the mortgage, but keep enough by to tide me over until I could get another job.

Dick_here

If you have redundancy insurance, let that pay the mortgage for a year...

sammyjammy

I cannot really advise on whether you should pay your mortgage of for not, i guess it depends on any other debts you might have and how much you would need to live off, as far as claiming Jobseekers allowance is concerned you'll likely be entitled to six months contributory benefit which is based on National Insurance paid, it won't matter what your savings are. If you do end up need to make a claim to JSA do it straight away, it takes some time these days to get your claim up and running so if you get Pay in lieu of notice it will just mean that when it runs out your claim will already be sorted for to start receiving benefits.

You don't say if you have family but if you were to claim means tested benefits I think the fact that you've used the cash to repay the mortgage means it would still be taken into account.

Sam