Should I pay off my ~£100k mortgage?

DoubleDutch1869

Hi guys,

I'm new on here so please be nice!

My partner and I bought our first house around 2 and a half years ago at age 27. Around June time last year my partner was diagnosed with cancer and she's now out the other side which is wonderful news!

When we took out our mortgage we took critical illness insurance which we've recently found out is going to pay the balance of our mortgage.

So at the age of 29 we're going to be potentially mortgage free! I'm a few months into a 2 year fixed so will pay a charge for early repayment (which the payment will cover) but a few people have mentioned potentially having issues getting credit in the future as we won't really have any debt. We both have cars via PCP and mobile phones but apart from other household bills that's it.

Should we lump sum the outstanding balance, including the early repayment charge? do you think we could potentially have issues with getting credit in the future? We've never had any issues in the past. Or should we just leave the balance sitting our bank and the normal mortgage payment come off? Of course I'm just looking for some advice nothing else!

Thanks in advance.

MM10

I am really sorry about your health scare!

I would just pay off the mortgage if I were not very disciplined. Otherwise I would leave the lumpsum in a high interest account for two years and then pay it off.

Then I would still pretend I am paying a mortgage for a couple of years to build up my savings.

With a good saving record and a regular source of income and a paid off house. I doubt you will have issues getting credit if you ever need it.

Cariad71

I'd pay it off, especially if the insurance also covers the early repayment fine.
You can easily get 'good credit' with a credit card. I'm so glad your partner is ok!