Will paying off mortgage affect credit score?

azalea2018

I am close to paying off my mortgage, which is a Nationwide interest-only one. I have just £550 to go. But I've been told that some people keep their mortgage at a low level because it's better for their credit score. Is this correct? Should I keep this small amount on it? I'm paying only 98p per month now in interest.
I would like to sell at some point and get another mortgage, but given that I've just been made redundant, this won't be happening soon. 
My credit score is 999. 
Thanks for your advice.

MovingForwards

Credit scores in the UK are not like in the USA. Over here it's for our fun and not used by financial institutions as they have their own internal algorithm methods for generating their own yes / no, pass / fail, accept / decline. It's the credit history seen and used eg payments made on time, late / missed payments, defaults, CCJs etc.

Keeping the mortgage open was a thing years ago as a way of keeping mortgage deeds safe in the lenders storage facilities, now a lot are electronically stored at the land registry, if the property is registered.

Thrugelmir

Will be better to be mortgage free. Even though the balance is minimal. 

azalea2018

Thank you for your advice. I appreciate this.

Mickey666

I've had no mortgage or car finance for over a decade and my credit score is 999 (for what it's worth), so I doubt it'll make any difference if the OP pays off their mortgage.
I have plenty of 'credit' transactions though because I use a credit card for most of my expenditure but pay off the balance in full each month by direct debit.  My house insurance is also paid monthly on a 0% interest option, which is effectively a credit agreement.  I also have credit accounts with various companies, all of which are paid in full each month but are still tracked as a credit agreement.  Thus, even though I have no debts as such (merely the outstanding balances until the next monthly statement) all this 'credit' activity seems to be enough to keep my score up - though again, for what it's worth.