Should I pay off in full or keep a little there....?

RiccyGonzalezIII

Hello all, I am coming to the end of my three year fixed of a six year mortgage. When the fixed period ends I am planning on not renewing but paying off the mortgage with money I stashed into a fixed rate bond to mature at the same time with the same balance as the outstanding mortgage balance.

I am trying to decide if that is a good plan i.e. pay it all off and go mortgage free or keep say a penny in my mortgage account just so it still exists......are there any upsides or downsides to either of these approaches? (I'm thinking credit score, keep investing at higher than mortgage rate (unlikely) etc etc).

Many Thanks

Brie

Credit score is immaterial - you're the only one that sees it.  

What type of mortgage account would it be to be kept open?  I haven't closed my account but it's basically a current account with a massive overdraft that doesn't cost me anything as long as I keep it in credit.  If you think you might need that "overdraft" and there's no charge then fine.  

As for clearing a mortgage - it's a wonderful feeling to know that there's no demand for your money.  And you do have the option to put that same monthly amount into a proper savings account instead.