Repayment of mortgage

[Suetheramble]

Is the view it is still financially practical to leave money owing on the mortgage? There is now no tax relief - unless it is an investment-so why do some folks state do not pay off the mortgage?

[factor-fiction]

im not sure- I think it was because that way the bank/building society would look after the deeds for you, and maybe it would be easier if you needed to remortgage in an emergency.

[humpy07]

My parents still owe 50p on their mortgage. Abbey look after their deeds for free, which they would have to pay anything from £30 upwards, each year elsewhere. Obviously, if your property is Registered, this argument is void, as all pertinent documents would be stored electronically by the Land Reg.

[R1Geezer]

some do it to get the deeds looked after. But really they are irrelevant in most cases so there is really no reason to not pay it off.

[janbee]

I paid off my mortgage 3 years ago and my solicitor looks after my deeds for free. It's kept with my Will. Best thing I ever did. What a huge weight was lifted when I did that.

[wolf63]

When I paid off my mortgage I left a balance of £-130. The bank advised that my deeds would then be kept for free. He also mentioned should I need to borrow against my property in the future it would mean that I would be extending an outstanding mortgage as opposed to having to make a claim for a new mortgage.

[Nosha123]

I believe there is a benefit to keeping the mortgage - as it makes it easier to release equity as you are only increasing borrowing of an existing loan so you are looked on more favourably than a completely new application - plus there may be less fees to pay

[Nosha123]

one more thing.. plus if you are a home owner with a mortgage - then you are viewed with a good credit rating if they can see you pay a set amount each month with no problems... if you have no mortgage payments at all then they cannot judge you based on that criteria...

[treetops1]

Can I Just ask if you leave money on your mortgage does interest not accrue. Thankyou.