Financial whizz kids out there? No mortgage v low mortgage?

[JoyceDivision]

Hi, just a quick question (and it's not a boasting by stealth, we have a small house in a so-so area)

we've got our mortgage down to about 2k, should we carry on to repay it in full (about 6 months) or have really low repayments and keep a small debt going?

dh says some one thinks re credit ratings it is better to keep a low debt/

any advice thanks

Be debt free and start investing!

Is the mortgage the only credit you have? Do you have credit cards etc? If not, it might be worth applying now rather than after the mortgage is paid. Keep it running, just in case. You don't have to use it.

How likely are you to need a 'good' credit rating? Are you planning on borrowing money in the immediate future?

The above are some things to consider but, when it comes down to it, there's very little value in paying more interest than you have to because it might improve your credit rating.

Don't plan to get another mortgage, have a credit card that is used (more byme than dh! ) May buy a newer car than what we have but not brand new but it would be within months of getting rid of mortgage

Have extra savings about 6k after mortgage paid off so in some circumstances we can borrow money off ourselves iykwim and pay ourselves back...

Borrowing off yourself is always the best way to do it, if you can. Are you planning on putting the equivalent mortgage payment straight into savings?

The best thing you can do for your credit rating is be on the electoral roll. It's not anything to do with how you manage your money but it's a huge plus. Also it's good to be a married homeowner who works in the public sector. Credit ratings are funny things, I wouldn't worry about it too much.

Ahthank you thatstoast.. dh came home saying some a work pays some silly small amount on their mortgage.. but I want to keep paying and get rid!

We pay about £450 so I will just start to put it in savings when mortgage paid off. I am so not rock n roll

get rid of it.
no point giving the bastards money
AND
the land registry deeds are all online now so you do not even have to store them

you just get a funny letter from the Land Registry to say that there are no charges attached to your property - I got my one last October

Thanks TalkinPeace

With interest rates so low you are better off having the credit in order to expand your investments.