Do I clear mortgage?

andys15

Getting close to mortgage freedom. What happens when you make that last payment?  Should you make a last payment or should you retain a small mortgage?  I will probably never require a decent credit rating again, but who knows, and not having a mortgage will probably effect that. 

I have £18200 available on credit cards and not using any of that available credit, is showing as a negative, plus having a mortgage is showing as a positive. 

So what’s the best thing to do?  

MovingForwards

When you make the last payment there's a payment to be made which then released the mortgage from the title deeds, a form is then sent to the land registry to remove the mortgage.

Clear the mortgage. People used to carry a small balance so the lenders would safely look after the title deeds rather than having to store them at home. If your property is registered at the land registry it's electronic title deeds, not paper ones.

Thrugelmir

Clear the mortgage. No benefit to maintaining a small balance. Enjoy your new found freedom as well. 

andys15

I won’t have much freedom. Going to save the money for 5 years so I can retire 7 years early. Then I will enjoy it.