Should I pay all my mortgage or will it affect any future mortgage?

dolphy

Hi, apologies if these are really stupid questions. I have looked through the forum to save any embarrassment but here goes:

1) I have inherited money from my mother's estate which will just about pay off my mortgage. Should I repay all the mortgage or is it sensible to retain a small amount should I ever need to get another mortgage, that is, I'm not sure if it is harder to get a mortgage from fresh these days. (It is possible I may have to move in the future as my child has special needs and wherever in the country he is educated, I will have to go too).

2) I assume if the mortgage is paid off then I get sent the deeds. Are these something that would be best lodged with a solicitor for safe keeping? Or again, if I kept a small amount on the mortgage then the BS would continue to keep them at no cost? Is that right?

I would be very grateful for any advice, I could ring my BS but I never feel that you get honesty and I'm just trying to make sure I don't fall into any traps as it were.

Many thanks

cos_2

Hi Dolphy,

Just my tuppence worth, not an insider, I'm afraid.

A future lender will surely be concerned more about your repayment history than simply keeping a loan going for longer than necessary, I would think. I would pay it off completely and keep my documents in case I want to tempt a future lender. Of course, if you went back to your current lender then they'd have records anyway

As for deeds, aren't they now filed electronically in the Land Registry (for England and Wales)? I'm not sure you need to keep a physical copy anymore. Worth checking.

Land_Registry

cos wrote: »

As for deeds, aren't they now filed electronically in the Land Registry (for England and Wales)? I'm not sure you need to keep a physical copy anymore. Worth checking.

Take a look at our online FAQs on the subject of title deeds etc - if the property is in England & Wales and registered then the central record will be the key to any future sale/mortgage of the property as any purchaser/lender will rely on that information

dolphy

Many sincere thanks Cos for your quick reply. What you say makes sense about the repayment history. I think I am confusing myself (not difficult LOL) with adding to an existing mortgage, eg liquid cash needed for moving should that occur. I've never had an extension on my mortgage so really haven't a clue if that facility still exists with the tighter restrictions on borrowing now. (I can recall friends back in the day getting top ups on their mortgage for things like an extension, or even holidays in some cases!) I didn't realise about the land registry either so thanks for that info. I have been alive on this planet....honest....:) I've just had my head stuck into other things that's all.

BTW, how do I 'thank you' officially on the screen (as in, 'thanked so many times')

Thanks again

Dolphy

lazer

With some mortgages any overpayment can be "claimed back" so essentailly could be used to fund a future move, but that depends on if your mortgage is portable - some are some aren't.

Also check to make sure you don't have an early redemption fee, in which case it is best to leave a small balance.

Check you original mortgage documentation to see if there are pitfalls or benefits to paying it off.

Also depending on your current mortgage rate you may be able to get a better return on your money by saving in high interest accounts.

dolphy

Many thanks Lazer and congratulations on your marriage! :T