I can pay off mortgage - but should I?

Legacy_user

Hi,

I am in a position to pay off my remaining mortgage. It is an older mortgage and it has a low rate. I cannot find a "reasonable access" account with an interest rate that is higher than my mortgage rate. There are no fees for paying off the mortgage early.

At some point, I will want to move and get another mortgage.

Should I pay off all this mortgage first or keep it going with a reduced amount?

If this sounds a daft question i.e. always pay off debt first, my question is because I don't know how being debt-free affects my suitability for a new mortgage. I've heard that a bit of debt makes it easier to get credit cards or higher limits, but I don't know how it affects mortgage suitability.

Thoughts?
J

SJ1

Hi there

I am no expert but I believe that another prominent poster paid his mortgage off and then found it tricky to get another one as paying off a mortgage by itself is usually very good for your credit score.

I am trying to recall who it was but I can't remember... sure someone else will! So my advice would be to pay it down but leave some small mortgage for you to be repaying before you move house.

SJ

egoode

If the mortgage is portable and you are planning on moving at some point soon then it might be best to keep the mortgage going and not pay it off.