Mortgage repayment options

flopsy1973

Hi
currently own 1 house which i am letting out with around 10yrs left on mortgage paying 106 per month around 14.00 interest on a open plan mortgage.
am living with fiance in her house and am looking to buy another house with cash
Is there any reason for me keeping my other mortgage going on my own property or should i pay it off????
thanks

flopsy1973

flopsy1973 wrote: »

Hi
currently own 1 house which i am letting out with around 10yrs left on mortgage paying 106 per month around 14.00 interest on a open plan mortgage.
am living with fiance in her house and am looking to buy another house with cash
Is there any reason for me keeping my other mortgage going on my own property or should i pay it off????
thanks

any advice here

stevenhp1987

Several factors are at play here, and there is not enough information.

what is the % apr, are there any early repayment charges (ERC)?

If it's a really low % apr, you might be better off investing the money or putting it into savings. If it's high, then paying it off would be good, but it depends on the ERC.

flopsy1973

there is no ERC and the rate is around 1.3%

flopsy1973

any advice on this

stevenhp1987

With interest rates of 1.5% easy access available, I would be tempted to put the money in that, as it'll generate more interest than you would be paying out to the mortgage company. It also means the money is available should anything happen!

Although I would probably pay it off so I don't have it over my shoulder.

flopsy1973

Think i will pay it off unless there are any other reasons not to pay it under my circumstances. Also should i pay it all off, people tell me to leave a small amount left so that the bank looks after my deeds rather than me being responsible for them ??? any thoughts

flopsy1973

flopsy1973 wrote: »

Think i will pay it off unless there are any other reasons not to pay it under my circumstances. Also should i pay it all off, people tell me to leave a small amount left so that the bank looks after my deeds rather than me being responsible for them ??? any thoughts

any thoughts on this

TrickyDicky101

Deeds are no longer relevant - it is the registration of the title at the Land Registry that matters now (assuming you took your mortgage out after 1988 then you are definitely registered at the LR). Hence, assuming you are registered on the title at the LR you have no need to retain a mortgage balance to ensure the lender looks after the deeds.