Is it wise to pay off my mortgage?

ANB_2

Can someone please advise ...........Will my credit rating be affected if I paid off my mortgage entirely but still remain a homeowner??

Debt_Free_Chick

Do you have any other "good stuff" on your credit record e.g. loans, credit cards?

In short, I don't think paying off your mortgage will affect your credit record ... but why are you concerned? What kind of credit do you think you might need in the future?

ANB_2

Debt Free Chick,

Yes, Currently I do have all the usual "good stuff" on my credit record.

I was thinking for the future ..........Say I wanted to apply for a Virgin card or any further credit - Would the points rating be better if I had a mortgage no matter how small? Or is it the fact that I am a homeowner that attracts the credit card points rating.

roger56

Paying off will probably improve you ability to get future credit as you will own a valuable asset against which any loan can be assured. It will probably enable you to get a better loan rates as well (ie lower APR).

However if your current mortgage rate is lower than what you can achieve with savings interest, keep the mortgage. (eg if you have a capped rate).
Also check first to see if there are any penalties for paying off the mortgage. If there are take these into account first.

Rafter

It is often worth keeping a tiny mortgage open both for credit record and because they look after your property deeds etc for free!

Have you thought about transferring to an offset mortgage? That way your mortgage can effectively be paid off by being fully offset but you still have access to a cheap source of credit if you need it at some point in the future.

R.