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Paying Off Mortgage
CaptainDarling
Posts: 1 Newbie
Have accepted an offer on my house, that is over twice the property I am purchasing.
Therefore I can pay off my mortgage and have a nice large reduction in monthly outgoings.
One thing is needling me though - I was given some advice to not pay it off entirely, and to leave a small amount - say £5,000 on the mortgage.
The rationale was the if I need to borrow again, I can 'use' the small mortgage somehow. I was of the mind that I'd have to take out a new mortgage, if I wanted to borrow some extra money.
By the way - I really don't feel the need, or have the desire, to borrow any more money, and would rather pay the mortgage off - thoughts?
Therefore I can pay off my mortgage and have a nice large reduction in monthly outgoings.
One thing is needling me though - I was given some advice to not pay it off entirely, and to leave a small amount - say £5,000 on the mortgage.
The rationale was the if I need to borrow again, I can 'use' the small mortgage somehow. I was of the mind that I'd have to take out a new mortgage, if I wanted to borrow some extra money.
By the way - I really don't feel the need, or have the desire, to borrow any more money, and would rather pay the mortgage off - thoughts?
0
Comments
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Thoughts - pay it off
I don't understand the logic of keeping a small mortgage and paying interest on that.
Expanding a small mortgage to borrow at a time of need, should be no more difficult than applying for a mortgage against a mortgage free property. The lenders will still look at house value, affordability and length of term etc.
Just my thoughts.......Life isn't about the number of breaths we take, but the moments that take our breath away. Like choking....0
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