Pay Off mortgage or leave nominal amount

pb2016

Hi!

My Mortgage is due to end later on this year but I have heard people say that you should leave a nominal amount in the account to keep it open. I'm not sure what the benefits of doing this would be and if indeed this is still relevant. Is it something to do with storage of deeds? Can anyone advise me please?

Thank you

AnotherJoe

Years ago yes it was a cheap way of them storing the deeds but that's redundant now with electronic records. Pay it off unless there are other potential benefits such as a cheap loan possibility in future and you might need one.

Goldiegirl

Don't listen to what 'people' say - they are at least 12 years out of date.

It's only worth keeping the mortgage open if you want to borrow more money for home improvements or similar.

minimike2

Goldiegirl wrote: »

Don't listen to what 'people' say - they are at least 12 years out of date.

It's only worth keeping the mortgage open if you want to borrow more money for home improvements or similar.

It's not worth keeping it open for that either.


Pay it off.

pb2016

Thank you all for your help. I had enquired last year about borrowing some more money on the mortgage (unnecessary in the end) and I was told that I would have to apply for a new loan in the normal way to run alongside the existing mortgage, so it's unlikely that keeping it open would help with future borrowing with my mortgage company. I will pay it off as suggested. Thank you all for taking the time to reply- your advice is appreciated!