Repaying Mortgage before taking out a new one.

Roy1234

My old mortgage is almost repaid, thanks to regular extra payments, and is now at a level where I could clear it completely (£2k).

I'm hoping to move house later this year, or at worst, sometime next year, borrowing around £30k with my partner over 10-15 years to do this. We both work full time and don't borrow (beyond the tiny mortgage) and are monthly full repayers of our credit cards.

Our credit scores should be good, except I'm aware that sometimes having little debt can perversely count against you when taking out future loans.

My question - is there any credit scoring advantage to leaving this small mortgage running until we're in a position to move up the housing ladder, or will it be of little relevance when raising the future £30k joint loan?

Thrugelmir

Might as well pay it off.

Will make no difference to the new mortgage.