Keep or close mortgage fully offset

sebtomato

I think I have read many times that not having any credits, or credit cards can be negative in term of credit rating.

Mojisola

getmore4less wrote: »

The only thing you have to watch is the benefits trap having the savings, not a problem if you have other money/assets or will have fairly quickly.

This seems the only drawback to not paying off the mortgage.

If life changed dramatically and you needed to claim benefits, you wouldn't be able to get any means tested benefits because of the capital you could draw on.

If you had paid off the mortgage, the amount of money tied up in the house wouldn't be taken into account and you would be able to get help.

Thrugelmir

sebtomato wrote: »

I think I have read many times that not having any credits, or credit cards can be negative in term of credit rating.

Not from a lenders perspective. There's nothing positive about being in debt.

getmore4less

Looks like you have the imediate obvious ones covered.

keeping it for the stuff you did not thinks of.

Credit rating is a red herring when you have access to a shedload of money at base+1.99%

Just run Credit cards for day to day collecting poinr/cashbacks and paid off in full will keep those credit files in order.

Reducing the available credit as the term gets close(like 5 years) may be sensible as you only ever want to borrow your own money if you have a great investement or can pay it back from income.

as a 40% tax payer pension wrappers may be a sensible option for future savings/investments you have the ISA to bridge a gap if you retire early.