I started my own business about 5 years ago, I wouldn't change that decision at all, that said it was very tough particularly early on. Still is now from time to time.

If you are planning on using the redundancy to reduce your mortgage  that's a great idea, but make sure you have the option to redraw some of it because (whilst I obviously don't know what type of business u r going into), chances r u will probably need to use some or all of it to support u whilst you build your business.

Pop  Bumper Pete asked a good question, did u want to be your own boss before the redundancy came up? This obviously needs to be something u have wanted and thought about for quite some time, your family too needs to be onboard also because it will directly affect them too. The stress of work and money can put a lot of strain on a relationship, plus chances are u may have to compromise on some lifestyle objectives for a while too.

How easy could you find re employment if it didn't work out? That has to be a consideration, particularly if your current employment is quite specialised or unique, particular in your area/location, with few possible alternative employers.

That said, if it's something us have always wanted then go for it. Personally I always wanted to have my own business and I knew if I didn't try I would have always regretted it.  That said I put some major personal and family objectives on hold to make sure I could stick it out. Also I knew if I didn't do it soon, the longer I left it the harder it would have been to leave my employer and start. I was on a really good income and pretty cushy job but it didn't do it for me. Plus I worked with heaps of guys that "talked" about starting their own business, but the reality was they had built a lifestyle around a particular income that they could never give up initially to start a business. I didn't want to become like that, so I knew if I was to give it a crack sooner rather than later was the go.