should i pay off my mortgage totally

markbsac

hi my endowments mature within 12 months they are on track to pay off the outstanding ammount on my mortgage ...a friend told me last night not to totally pay it off incase i wish to borrow again (i have no intention to though)....would this be good advice and how much could i leave as a minimum ammount......i am due to be made redundant within the next 12 months so maybe to pay it all off would be a good idea....any thoughts please.

Jonbvn

It depends on the T&C's of your mortgage. Not all lenders would let you draw down further funds in future.

The other issue you have to consider is the interest rate you are on. It may be better to save/invest elsewhere rather than pay-off your mortgage.

LouLoubella

I guess it depends on your circumstances and the T&Cs of your mortgage, however, if I were you facing the possibility of redundancy then I would pay most it off.

We did not pay off all of our first mortgage but left £1 owing. This was because a) the mortgage company kept the deeds of the house in a security box for us for free and second because if we wanted to borrow any money again (which we have just done) there would be no fee to pay and it was very easy to do.

dimbo61

You have 2 things which are very important and tied together
1 you have an endowment which you took out to pay off your mortgage ( ie it is there to clear the endowment mortgage)
2 you may loss your job in 12 months
Now you can use your endowment money to clear the mortgage and the nice people at the benefits agency cant do a thing about it ( unlike cash in the bank or a big pay off from your employer!!)
Me I would clear the mortgage or reduce it down to a few pounds and then look at your options
Much cheaper to live without a mortgage debt or any debts

FLAPJACK

I second dimbo61 on this one

RosieTiger

3rd it !
Get it out of the way before you start getting asked questions about how much money you have saved by our friends who don't like to pay benefits after you have worked for them.
Amazing how many people wantto advise you notto pay off your mortgage though?????