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Pay it off or keep a little?
jamesactor
Posts: 6 Forumite
I'm in the fortunate situation that I have enough money saved to pay off of my mortgage. My 5 year fixed rate just ended and the rate will increase to the SVR unless I get a new deal, which I don't need.
I plan to move in about 2 years and will probably need a new deal then for a bigger property. I'll save more in this time.
So I'm keen to pay it off but I've been advised it's a good idea to keep a small amount going. They said this helps with my credit rating and makes it easier to borrow again in the future. Is this true?
I called Santander (my provider) and they seemed to think it was really strange for me to want to do this.
Any guidance please?
Thanks!
I plan to move in about 2 years and will probably need a new deal then for a bigger property. I'll save more in this time.
So I'm keen to pay it off but I've been advised it's a good idea to keep a small amount going. They said this helps with my credit rating and makes it easier to borrow again in the future. Is this true?
I called Santander (my provider) and they seemed to think it was really strange for me to want to do this.
Any guidance please?
Thanks!
0
Comments
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It's quite odd. It was big in the 80's but that was more in relation to keeping copies of deeds.
Why not just use a credit card to continue to build a credit history?0
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