Is it best to have a mortgage when applying for a new one?

jenni_fer

Looking for advice on what to do with our mortgage:

We currently have a small mortgage which is fully offset (offset mortgage) and the fixed rate period will run out in a few months.

As we aren't paying any interest the switch to SVR won't hurt us but we are actively trying to move house and will borrow about 5x more than we currently have outstanding. Should we 

a) let the mortgage run on the SVR until such time as we settled it to borrow more.

b) pay off the mortgage

c) re-fix our rate.

Will it look better to have a small mortgage or a settled mortgage when we finally get to apply for a new one?

Snookie12cat

I suppose it depends what your plans are.

Are you selling at the same time as buying? If so, then I don't think it makes any difference what you do.

If you are buying without selling and using that money as the deposit then your affordability will be hindered by the current mortgage and you probably won't get a new mortgage.

I wouldn't fix it if you plan to move. You will get hit with ERCs so there is no point. 

jenni_fer

Thanks. 
We're going to let it run for now.