Paying off our Mortgage or leave balance?

Chelsea_Blue

Currently owe around 18k with 10 years or so to go. Current rate 3.74%
Have been overpaying for a number of years to reduce the balance and will shortly be in a position to pay off the mortgage completely.
A friend suggested to me to leave a small balance like 1k and pay around £10.00 per month for the rest of the term, just in case we decide to remortgage/purchase a buy to let, as it would make things easier regarding securing future funds. Is this true? This could be a possibility in the future.

We have no other debts/cards etc.

What would you do?

Brighty

Don't see the point nowadays
If you want to remortgage in the future, you'll have to jump through the same affordability hoops as if you were applying from scratch, plus you're effectively tying yourself down to only using that lender.

The advice used to be to do this, because your lender looks after the paper deeds for you for free, so if you paid off the mortgage, you'd need to pay them to keep the deeds or make your own arrangements. Nowadays there are no paper deeds, it's all electronic, so this doesn't apply (so long as your property is registered at land registry?)

AnotherJoe

As per Brighty, I'd just close it down so its done, plus thats a very high rate so that makes it equivalent to getting that rate on your savings, tax free.
Just check what redemption penalties there are.