should i pay off my mortgage

markbsac

i have 3 years left to pay on a mortgage of 36,000 i have 26,000 i can use in my endowments i have the other 10,000 cash......i have a penalty for early payment of mortgage up to 31 dec this year....would it be best to pay off my mortgage next january...i cant see my endowments making another £10,000 in 3 years.

i have also been advised to leave £1000 as a small mortgage for credit ratings and so the coventry then have to keep my deeds...and for easier lending as i already have a small loan i can top up if required ????????

all the best

mark

scottish_lassy

Hi Mark

I'm not an expert and I'm sure someone will be along soon who has the knowledge to advise you.

I paid my mortagage off and left £10 outstanding!!!. As you say regular payments on your mortgage are good for your credit rating (and I'm hardly likely to default on 6p a month!!) I have 13 years left on my mortgage and would have to pay a £250 early repayment fee if I paid the £10 off so by paying the 6p a month (decreasing on a repayment!!) I'll hardly break the bank by paying around £12 in total!! In fact I've been waiting forthe bank to offer to waive the early repayment fee, as the administration ie stamps etc is costing more than I am paying!!!

The only problem is I can't quite call myself 'mortgage free'!! Whatever you decide, be glad you have choices -many don't just now

markbsac

my penalty of £800 ends on 31st dec so from 1st jan i can pay it off without any penalties.......so i may do as you have done and leave the smallest ammount in there....i would say you are mortgage free...and i bet you are glad as well.i was hoping to leave my endowments to run there course as i do like a bit of a gamble,but work is also not that secure at the moment...so to be mortgage free would be one less presure in life.

Sprintblue

scottish_lassy wrote: »

Hi Mark

I'm not an expert and I'm sure someone will be along soon who has the knowledge to advise you.

I paid my mortagage off and left £10 outstanding!!!. As you say regular payments on your mortgage are good for your credit rating (and I'm hardly likely to default on 6p a month!!) I have 13 years left on my mortgage and would have to pay a £250 early repayment fee if I paid the £10 off so by paying the 6p a month (decreasing on a repayment!!) I'll hardly break the bank by paying around £12 in total!! In fact I've been waiting forthe bank to offer to waive the early repayment fee, as the administration ie stamps etc is costing more than I am paying!!!

The only problem is I can't quite call myself 'mortgage free'!! Whatever you decide, be glad you have choices -many don't just now

Absolutely Brilliant :T:T :rotfl:

JorgAlBear

There will be an administration of some sort from your lender when you close the account, even after your redemption period is over. Depending upon when you took the mortgage out, if you look on your mortgage offer it should tell you what these fees are. Anyway, I would suggest that you leave the account open with a minimal amount, again check your T&Cs to see what the minimum balance allowed is, it changes from lender to lender. Either way, well done on nearly being mortgage free!:T

markbsac

ya know i love this site...we are all in it for the same reason....thanks for your time to respond to me.

all the best

mark

Rosemary_Jane

Another reason to keep a small amount on the mortgage is to reduce the risk of fraud.

It was reported that some cases have occurred when people have tried to sell their house only to find it was no longer theirs. Criminals have found houses on the land registry and sent in fake sales papers with forged signatures 'selling' the house to themself! They then borrow money secured against the house and do a runner.

I have read that they target houses without mortgages attached to them, because otherwise the Land Registry contacts the lenders at the time of sale.

This is supposed to have been sorted, but I am not inclined to trust it just yet.

Rosemary

Jonbvn

Rosemary_Jane wrote: »

Another reason to keep a small amount on the mortgage is to reduce the risk of fraud.

It was reported that some cases have occurred when people have tried to sell their house only to find it was no longer theirs. Criminals have found houses on the land registry and sent in fake sales papers with forged signatures 'selling' the house to themself! They then borrow money secured against the house and do a runner.

I have read that they target houses without mortgages attached to them, because otherwise the Land Registry contacts the lenders at the time of sale.

Rosemary

RJ,

Never heard of this before. Do you have a link to a news story about this?

Rosemary_Jane

Sorry I didn't reply to this earlier Jon,

I've only just seen it. Again apologies that I now can't find the link. I saw it originally linked to from a post on the fool.co.uk discussion boards, but a search doesn't come up with the post.

I did later hear that the Land Registry were considering removing the buyer's signatures from the purchase documents that can be downloaded with the ownership details

Rosemary