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    • CaptainDarling
    • By CaptainDarling 14th Sep 17, 1:09 PM
    • 1Posts
    • 0Thanks
    Paying Off Mortgage
    • #1
    • 14th Sep 17, 1:09 PM
    Paying Off Mortgage 14th Sep 17 at 1:09 PM
    Have accepted an offer on my house, that is over twice the property I am purchasing.

    Therefore I can pay off my mortgage and have a nice large reduction in monthly outgoings.

    One thing is needling me though - I was given some advice to not pay it off entirely, and to leave a small amount - say 5,000 on the mortgage.

    The rationale was the if I need to borrow again, I can 'use' the small mortgage somehow. I was of the mind that I'd have to take out a new mortgage, if I wanted to borrow some extra money.

    By the way - I really don't feel the need, or have the desire, to borrow any more money, and would rather pay the mortgage off - thoughts?
Page 1
    • mcpitman
    • By mcpitman 14th Sep 17, 2:04 PM
    • 544 Posts
    • 370 Thanks
    • #2
    • 14th Sep 17, 2:04 PM
    • #2
    • 14th Sep 17, 2:04 PM
    Thoughts - pay it off

    I don't understand the logic of keeping a small mortgage and paying interest on that.

    Expanding a small mortgage to borrow at a time of need, should be no more difficult than applying for a mortgage against a mortgage free property. The lenders will still look at house value, affordability and length of term etc.

    Just my thoughts.......
    Life isn't about the number of breaths we take, but the moments that take our breath away. Like choking....
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