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Repayment of mortgage

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Suetheramble | 21:24 Mon 17th May 2010 | Business & Finance
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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?
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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.
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.
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.
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.
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.
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
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...
Can I Just ask if you leave money on your mortgage does interest not accrue. Thankyou.

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Repayment of mortgage

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