Credit rating for mortgage

Frugal

Hi,

My younger brother wants to move to a bigger house but he cannot find a buyer for his current house, so is for the moment stuck where he is.

He only has a bit of mortgage left on his current house and is in the position to pay it off in full.

Should he do so, or is it better to keep paying off the mortgage in installments to boost his credit rating?

Obviously he wants to ensure his credit rating is top notch so that he can apply for a new mortgage, once he is able to finally move.

Do mortgage providers look more favourably upon someone who is already repaying an existing mortgage? Or is it better to just pay off and then start afresh?

Thanks in advance.

ACG

If he has no bad credit then he will probably be fine no matter which route he decides.

If he has cleared his mortgage off say 6-12 months prior to a new application it wont make any meaningful difference either way.

Frugal

Thanks very much. So what you're saying is, it won't make a difference to credit rating so it's best just to pay it off now in full? I don't think he has bad credit.

ACG

Im saying he should do what ever his preference is as the difference is not worth worrying about.

Frugal

Ok I understand, many thanks for your advice!

DCFC79

Frugal wrote: »

Thanks very much. So what you're saying is, it won't make a difference to credit [STRIKE]rating[/STRIKE]history so it's best just to pay it off now in full? I don't think he has bad credit.

Fixed that for you.


Lenders dont see the credit score just the history.