Should I Pay Off My Outstanding Mortgage?

[wolf63]

I hope one of you lovely people in AB-land can give me some financial advice.

I am 50 years old and do not work due to ill-health.

I own my property and there is a relatively small amount outstanding on my mortgage (£175). It has been sitting at this figure for at least five years Initially it was agreed that I should leave an outstanding balance so that my deeds could be kept in deed store.

Is there any benefit to paying off this amount or should I just leave the amount?

I think that I should now go to bed now as it will soon be time to get up.

:-)

[SirOracle]

If you feel that you would be more secure having your Title Deeds kept by the Bank /Building Society,I would ask them what is the minimum amount they require so they can hold your Deeds.

I would add that these documents are not so vital as they used to be,as things have now been computorised.

[Connemmara]

also what I done I paid in full and am awaiting for the deeds to be held by solicitor - so I guess six of one and six of another. Mind you I am wondering only now how much Solicitors will charge. My mortgage has been paid off from from September from Santander and I have heard not a word - I have sent them details re Solicitors - that is the latest for me.

[factor-fiction]

My understanding is that the physical deeds are not needed (unless the property is one of the few that have unregistered titles) so yiou could ask for them back but then you would either have to dispose of them (maybe shred some) or ask the solicitor to do it, or you could keep them yourself if you want them for any reason.
I assume the interest is only around £5 a year though so maybe it's not worth worrying about.

[Maydup]

There is one other implication to paying off the mortgage and that's the affect on your credit rating. If you have no other debts or payment plans and pay off your credit cards in full each month, your will eventually have a zero credit rating. This is not a problem unless you plan on borrowing again in the future for any reason. Keeping the £175 open, keeps you in the system.

Having said that I have a zero rating and am not bothered by it.

[woofgang]

check that your land is registered at the land registry website and the details are correct, then pay it off.

[dasherman]

Maydup, paying your credit card in full every month is actually one good way to improve your credit rating!

[ladybirder]

If I were you wolf I would like to be rid of the debt even if it were only that it would tidy matters up and make less work for my executors when I snuffed it!

[ladybirder]

Oh and dasherman is correct at 18:29.

[askyourgran]

I agree with ladybirder, pay it off and be debt free.

[granny grump]

There may be other benefits of keeping an outstanding balance. If you mortgage is with a Building Society then having an outstanding balance means that you keep you membership of the Society. I would think that a solicitor will charge more that than the keeping your balance - an average cost with a builidng Society is 1% on say £150 each year

[237SJ]

I`d get rid of it. It`s good to have as few loose ends as possible where finances are concerned.

[wolf63]

I don't have any other debt and don't have a credit card so I have probably got a lousy credit rating.

I will think it over. At present it is costing me next to nothing in interest. I only remembered about it when I tried to access my ISA details online and my mortgage details showed up.

Thanks