Not best to pay off all of mortgage?

[sten102]

I received some money a few years ago which could pay off my mortgage. However I didn't pay it all off, and kept just �1000 remaining, which is about �9 a month. I remembered someone advising me that it was best to do this, for benefit in the future, if I wanted to get another mortgage. Is this true, is there any benefit to this or shall I just pay the rest off...??!

[Ethel]

That may have been good advice when we got MIRAS against our mortgages, but I can think of no good reason otherwise.

If you ever want to re-mortgage you would be in an excellent position to do so whether you owed �1000 or nothing.

If you are a tax payer you are probably earning �450 per annum maximum interest on your �1000, and paying over �100 on your mortgage.

[Ethel]

If they try to charge you a mortgage exit fee (sometimes several hundred pounds) pay off �900, leaving �100 mortgage.

Right to Head Office explaining that you want to pay off your mortgage but refuse to pay the MEAF, so will happy pay �1 or so a month for the term of the mortgage.

Excellent advice here:

http://www.moneysavingexpert.com/cgi-bin/viewn ews.cgi?newsid1170081918,22653,

[Slingshot]

Ethel can you tell me where you can get a return of �450 p.a. on �1,000!!!!!!!!!!!!

[oldhenry]

me too!!
Pay it off , put the deeds with the solicitor that holds your will, he'll do it for free- mine does.
( hope you have a will?)