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  • FIRST POST
    • Filbert74
    • By Filbert74 17th Jul 17, 1:09 PM
    • 2Posts
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    Filbert74
    How does paying off mortgage affect my credit rating?
    • #1
    • 17th Jul 17, 1:09 PM
    How does paying off mortgage affect my credit rating? 17th Jul 17 at 1:09 PM
    I am in fortunate position to be within 11 k of paying off my mortgage. But I understand that to have no mortgage can negatively affect my credit rating..and I might want to take out another mortgage in the future depending on what happens / where life takes me. Can anyone offer any advice on this? If it is true, I am thinking to reduce it to an absolute minimum (e.g £1000), so that I still have one but pay it off very slowly..but I don't know if the credit rating improves by simply having a mortgage , or if I was to pay so little per month, would it make no difference anyway? By way of background info, I have never missed any credit payments in my life and have a number of Credit Cards, but only use one account actively, that I pay off each month.
    Thanks for your help!
    Last edited by Filbert74; 17-07-2017 at 1:13 PM. Reason: typo
Page 1
    • zx81
    • By zx81 17th Jul 17, 1:17 PM
    • 13,144 Posts
    • 13,442 Thanks
    zx81
    • #2
    • 17th Jul 17, 1:17 PM
    • #2
    • 17th Jul 17, 1:17 PM
    Paying off your debts shows you're not reliant on credit.

    Sensible usage is demonstrated by using a card for regular spends, and continuing to clear in full each month.

    Few lenders will be concerned by you having the disposable income to clear your mortgage.

    Your CRA scores will of course plummet as it's a major change, but that's nothing to do with anything.
    • Filbert74
    • By Filbert74 15th Aug 17, 1:01 PM
    • 2 Posts
    • 0 Thanks
    Filbert74
    • #3
    • 15th Aug 17, 1:01 PM
    • #3
    • 15th Aug 17, 1:01 PM
    Thanks for your help.
    • Lucky Duck
    • By Lucky Duck 16th Aug 17, 12:26 PM
    • 49 Posts
    • 23 Thanks
    Lucky Duck
    • #4
    • 16th Aug 17, 12:26 PM
    • #4
    • 16th Aug 17, 12:26 PM
    I was rather surprised to see my 'credit rating' improve when I moved house and took on a mortgage again....
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