Paying off a Mortgage

[Tinygog]

Hello All

Just looking for some advice please.

If you are in a position to pay off your mortgage, should you do so? There are no other debts involved like credit cards or loans. The reason I ask, is that I've heard if you are mortgage free, then your credit rating will drop, so it's best to pay it off bar a few thousand (maybe £10k) so that it keeps your credit rating up.

Is this a true statement?

[BevS97]

I paid mine off. Best thing we ever did. No idea if it affected my credit rating but I’ve never regretted it.

[megaflyer]

Pay it off and be debt free - to be honest why worry about credit ratings if you don’t need any credit ? You will hear conflicting reports but being debt free is so liberating . BTW I dont have a mortgage any longer and haven’t for over 10 years and have very high credit rating - and have no debts. Have a couple of CC I pay off monthly and that certainly helps (I think ) not that I am bothered (I only check Incase someone is using my details ! )

[Smilesonfaces]

We paid ours off about 6 years ago. No reflection on our credit rating. As Bev says above it is best feeling ever being mortgage free. Just check you have no mortgage penalties to pay. We carried on paying the mortgage for about 18 months plus the maximum overpay until our deal with the lender ran out and we could pay it off penalty free.

[mickey house]

I paid my mortgage off about 5 years ago and I still have a good credit rating which I guess is down to credit cards (which I pay off in full every month) plus I've had some interest free credit buys which has probably helped (why pay cash if you can get interest free credit).

[laura]

I’ve paid mine off too, 4 years ago and never had a problem with credit scoring.
I would say if you can do it then go for it, best decision I ever made and especially since COVID hit as being Furloughed took a good chunk of our monthly income but at least no mortgage to worry about

[400ixl]

It has no negative effect on your credit rating over time if you pay off your mortgage. You will have plenty of other measures such as household bills, mobile phones etc that will be used to give a rating.

[disney_l81]

We paid ours off thanks to some shares coming good with hubby's job. Best thing we ever did.

[Claudette]

I paid mine off eight years ago and it is a great feeling, I wouldn’t want this £10k bitty mortgage left behind. I have no idea whether it effected credit score but I would doubt it and I don’t care anyway.

[JudyC]

We paid off ours about 4 years ago. It didn't affect us getting a car loan a couple of years later when we had absolutely no debts or credit