Should a mortgage be redeemed if almost paid off?

[css_jay99]

My mortgage balance is about £100 due to overpayment. I am now on lenders variable rate (5.99%) with 8years to go and no ERC. Should the mortgage be redeemed? I'm worried the lack of a mortgage could have a negative impact on my credit score since I rarely use my credit card. There is also cost to storing the deeds to consider.

I plan to extend or purchase another property within the next 1.5yrs (depending on a lot of factors) so not entirely mortgage free.

[Zigenare]

My mortgage balance is about £100 due to overpayment. I am now on lenders variable rate (5.99%) with 8years to go and no ERC. Should the mortgage be redeemed? I'm worried the lack of a mortgage could have a negative impact on my credit score since I rarely use my credit card. There is also cost to storing the deeds to consider.

I plan to extend or purchase another property within the next 1.5yrs (depending on a lot of factors) so not entirely mortgage free.

Personally I wouldn't bother redeeming the mortgage, keep it open for your above reasons. Make sure you tell the lender what you wish to do as they could take your last payment as part of their standard payment cycle and force your hand.

[Snooky]

According to Experian:

No, paying off your mortgage early won't have a significant effect on your credit scores.

A mortgage paid in full will remain on your credit reports at the three national credit bureaus (Experian, TransUnion and Equifax) for 10 years as a "closed account in good standing." At the end of that time, if you haven't taken out a new mortgage, your credit scores may drop slightly because of a reduced credit mix and lower average age of your accounts.

https://www.experian.com/blogs/ask-e...mortgage-early

[eek]

I would be keeping the mortgage going because the mortgage charge makes it very difficult for the property to be sold via fraud..

[DoctorStrangelove]

I would be keeping the mortgage going because the mortgage charge makes it very difficult for the property to be sold via fraud..

^^^ This.

Though appearing on Y&Y or Moneybox to waffle on about it appeals to some.

And we all thought that this was a joke:

[css_jay99]

Personally I wouldn't bother redeeming the mortgage, keep it open for your above reasons. Make sure you tell the lender what you wish to do as they could take your last payment as part of their standard payment cycle and force your hand.

I wish I had asked this question earlier last week and would have not reduced the balance to that level. My thoughts was that mortgage wont bee redeemed till my term ends out or I initiate it but them forcing my hand kind of makes sense. I'll call them to confirm.

I would be keeping the mortgage going because the mortgage charge makes it very difficult for the property to be sold via fraud..

Scary!, Never thought of fraud part.

[css_jay99]

Though appearing on Y&Y or Moneybox to waffle on about it appeals to some.

And we all thought that this was a joke:

Beverly hill cops reminds me of growing up. Our VCR chewed up a friend's tape and he refused to loan me Police academy and Dirty Harry!

[Lance]

My mortgage balance is about £100 due to overpayment. I am now on lenders variable rate (5.99%) with 8years to go and no ERC. Should the mortgage be redeemed? I'm worried the lack of a mortgage could have a negative impact on my credit score since I rarely use my credit card. There is also cost to storing the deeds to consider.

I plan to extend or purchase another property within the next 1.5yrs (depending on a lot of factors) so not entirely mortgage free.

Change the mortgage at the next opportunity to an £85k offset mortgage.
Put £85k in the offset savings.
Free mortgage (other than setup fees so just get a high interest one with low fees) and £85k flexible finance available at the drop of a hat.

[GigiBronz]

In some religions a mortgage is usury and so a sin. Hence it would be illegal to take one in the first place. And I do think there is something there.

I would get rid of any debt out of principle because as a man (or a woman) you do not want to own anything to anyone.

One another note I thought this was a contractor forum where people buy the neighbours house out of spite and to house their second Porsche.
Not one giving fringe advice on weaseling around silly financial rules.

We are normalising slavery (mortgage as a death grip) too much. If contracts cannot afford houses paid upfront then who can? Aliens?

[NotAllThere]

In some religions a mortgage is usury and so a sin. Hence it would be illegal to take one in the first place. And I do think there is something there.

That'd be Islam then. They get round it by buying the house and you paying them rent until you've bought the house off them.