If I pay off my mortgage will it affect me if I want another mortgage in the future?

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

Replies

  • kingstreetkingstreet Forumite
    37.9K Posts
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Forumite
    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.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • dimbo61dimbo61 Forumite
    13.3K Posts
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Forumite
    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 ?
This discussion has been closed.
Latest MSE News and Guides

Boost your Nectar points

Get up to £25 in bonus points

MSE News

Ask an Expert: Scams

Watch MSE Katie's answers to your questions

MSE Forum

Hot Diamonds 40% off code

Including already-reduced outlet stock

MSE Deals