Remortgage or pay off existing and start again?

wjm.bobo

Hi

Husband and I both 53yrs
Husband works I don't
Current mortgage £36.500 which we could pay off now with no penalties.
Planning to move and will need to borrow between £50,000-100,000 .
Have inherited £150,000 so looking to upsize slightly as still have two adult children living and now working from home.

Question is I'm assuming if we pay off existing mortgage we will be termed as cash buyers which may have benefits when trying to secure our next property.

However, how will the banks view our position?

Is it better to keep existing mortgage and remortgage or would we benefit from starting again i.e better offers from banks.  Friend said we would be penalised if we pay off.

Thank you in advance of any advice you can give.

Thrugelmir

Might as well clear the mortgage if you've the money. Makes no odds in the bigger scheme of things. 

wjm.bobo

Thank you, I just realised we wouldn't be a cash buyer as we'd need to borrow anyway.