Pay it off or keep a little?

jamesactor

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!

[Deleted User]

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?