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An offset mortgage can be the best way to beat the recession – even if you lose your job.

More than a third of this country believes that the State welfare system will offer enough to those people who find themselves out of work, according to a survey by Scottish Provident – but this isn’t the case. You will need your own money and your own assets to get by if you lose your stream of income.

Scottish Provident says more people think they have a safety net in the Government, with 72% of Brits believing that the state welfare system in Britain should be enough for them to get by in this downturn if they find themselves out of work.

Susan Barclay, head of marketing at Scottish Provident, says: “Our report reveals that over the past five years, more people have come to believe that the state would provide an adequate safety net should the worst happen and we find ourselves out of work. However, the reality is that the average increase in job seekers allowance of just under £6 doesn’t come close to the cost of living in today’s world and the Government will continue to place greater emphasis on people providing for themselves.”

To provide for yourself you need flexibility and you need savings – both of which are available with offset mortgages. If you lose your job you can chose to reduce your mortgage repayments for a period, as well as spending some of your offset savings. Of course, any such decisions should only be made with the help of a professional adviser, but those options are there and can help people who find themselves temporarily out of work.

No one can predict redundancy, but you can be ready for it with an offset mortgage. If you end up on state benefits, you simply will not be able to pay your debts, pay your mortgage and keep up with yours and your family’s needs. You need to be prepared for anything – so be ready with an offset.

SOURCE: Scottish Provident, 25/09/09

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