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Worth keeping a tiny mortgage?
Mrbenray
Posts: 4 Newbie
Hi All,
I am really close to finally paying our mortgage 10 years early thanks to over-payments. I was wondering if there is any benefit to maintaining a very small mortgage i.e. £100 as we will hopefully be upgrading house soon and will need to borrow again. I guess in a round about way I'm asking if remortgage is better than starting completely again after a year of no mortgage.
Many thanks for any advice you could offer.
I am really close to finally paying our mortgage 10 years early thanks to over-payments. I was wondering if there is any benefit to maintaining a very small mortgage i.e. £100 as we will hopefully be upgrading house soon and will need to borrow again. I guess in a round about way I'm asking if remortgage is better than starting completely again after a year of no mortgage.
Many thanks for any advice you could offer.
0
Comments
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we paid off one of our mortgages early, but left just a £1 on it for a year which meant we were able to reclaim back the payments when we moved home. The benefit for us is that we were treated as existing customers and so did not need full credit check again. My OH had only just changed jobs when we remortgaged so it could have delayed us as he only had a months payslip to prove his new income. We paid no interest on the £1.
If it was me, i would leave it open in case i needed a large sum to borrow - the mortgage rate is usually lower than the interest charged by a loan.mortgage 1 33,000. paid nov 2012
. mortgage 2 87,000 due 51,686.76 at july 2013, but then:new home and remortgage ... £101065.43:eek: now 74k0
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