Pay off mortgage or keep it open

H12CAG

Hi all,

I currently still have a mortgage which i can now pay off completely.

I was already looking to move to a larger house am i better off paying off the current mortgage in full first before applying for a larger mortgage?

Or is it better to keep the current mortgage open and running but with a really small monthly repayment?

Thank you.

pramsay13

What will you be doing with the original property?
If you sell the house you have to pay off the mortgage.
If you're keeping it it will depend on the interest rates of the mortgages and the amounts.

H12CAG

pramsay13,

At the moment I would be looking to sell the existing property when looking for a larger property.

I have heard from some people it was easier for them to get the mortgage on the newer property when they still had their old mortgage. They KeePass there mortgage and had left it with about £5000 left on it to repay.

Cheers

ChrisK....._3

We left a small balance on an offset mortgage we had with First Direct which meant a small payment each month off the remaining capital and no interest payment (offset against savings) and an opportunity to borrow the full amount back at anytime without giving notice. For those reasons we decided to keep the mortgage open for a few years just in case we needed to borrow money. We eventually cleared it when we owed less than a £1000. We also kept our endowment insurance payment up, ironically that is despite suing the old company is the big endowment swindle cases when we changed to First Direct

pramsay13

You would have to check with your mortgage provider as the point of a mortgage is it is secured on the property.