If I pay off my mortgage will it affect me if I want another mortgage in the future? 30 April 2013 at 6:18PM in Mortgages & endowments 2 replies 551 views

Northshore

I have enough savings to clear my mortgage. However I am expecting to buy another house in around 5 - 10 years time. If I clear my mortgage now will it effect my credit rating when I apply for a new mortgage a few years down the line?

It make financial sense for me to clear the mortgage, but is there more to consider?

Thanks

kingstreet

Nope. No effects I can imagine.

As long as you have a "normal" credit record next time you apply, you'll be fine.

Subject to criteria, income, valuation etc as usual.

dimbo61

If you clear the mortgage now you then have 5-10 years to build up saviings towards the next move.
No point paying a higher rate of interest on your mortgage than you get from your savings ?