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Q&A » Mortgages
Hi all, we've been working towards paying our mortgage off (as everyone!) and are down to around 20K. We will be looking to move in the next year or two, and by then we should be able to pay this mortgage off. My question is, are we better to pay it off completely, or will it make moving (and possibly getting another small mortgage)easier if we have one still? Thanks.
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824Several factors here.
You should be getting less on your savings after tax than paying on your mortgage, so pay some off.
If you keep a nominal amount on mortgage, say £1000, they will continue to look after the deeds for you (not so important nowadays because it is HM Land Registry records which count most) especially if there are interesting documents there. Also, you keep your membership going with the Building Society (if you are borrowing from one) so you probably be looked at more favourably next time because they will have your payment records to hand and, if the Building Society gets taken over or merges you might get a bonus.
Posted on 16 January 2009 |
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23Just to let you know that I left a nominal amount on my mortgage with Bradford and Bingley in order that they looked after the deeds etc. but they ended this practice and introduced a flat charge which I considered wasn't worth it (because of role of Land Registry). So I paid off the nominal amount but then got hit with a fee of a couple of hundred pounds for some reason I forget the name of.
Posted on 16 January 2009 | Love 0 loves
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824CaptainFlak
I think your fee might have been for the work involved in getting the mortgage removed from HMLR records. That would happen if you paid it all off or held on for a while and then paid it off, unless, of course, you did the work yourself like I did, but it did help working next door to a HMLR office (not the one I had to deal with). This would be swept up in the sale & purchase if you moved.
Posted on 16 January 2009 | Love 0 loves
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0If your current mortgage is portable and is a good deal,
then it is probably better to keep it running. When you decide to buy a new house, you can then transfer your mortgage to it.
Posted on 17 January 2009 | Love 0 loves
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