Should I pay off my mortgage

nosy2006

I have a base mortgage rate with nationwide. My outstanding mortgage is about £35000. An opportunity has arisen whereby i may be in a position to pay off my mortgage at the end of this year - should I?? If I have no mortgage, will I have a poor credit rating?? Any feedback would be much appreciated re positives/negatives of having no mortgage.
Thanks

cattie

A couple of the positives of having no mortgage are,
You have the equity in your property, which should ensure you are good for credit or a loan, or at some later stage if desired, remortgage to release equity.
The amount you currently pay out on mortgage each month can go into savings, which will give you a healthy money cushion.

Unless I had other savings or money to act as a bit of a cushion I wouldn't use every penny I had to pay off my mortgage. In this kind of situation I would reduce my mortgage by paying a chunk off & keeping the rest in case of a rainy day situation.

nifferwilko

I know I've read a couple of threads where people have kept £1 on their mortgage so they don't have to find somewhere to keep their deeds, pay exit fees and the like. Might be something to consider?

But if you don't have any other savings I'd consider putting some of it aside somewhere - in an isa or something. Perhaps those on the Savings & Investments boards could give some pointers?

Jonbvn

nifferwilko wrote: »

I know I've read a couple of threads where people have kept £1 on their mortgage so they don't have to find somewhere to keep their deeds, pay exit fees and the like. Might be something to consider?

Since the land Registry keeps deeds electronically, retaining a paper copy is no longer an issue.

Regarding exit fees you may have a point. Does anyone know somebody who has kept £1 on their mortgage? I bet it would annoy the lender massively.