Any benefit of keeping mortgage open?

[neversay]

I'm about to clear our mortgage (only £2k balance at 4%) but I just wanted to check whether there is any benefit on keeping it open. One old reason was to store the title deeds which I guess are now electronic. Are there other benefits though, like maintaining credit history etc?

[Mike4]

I'm about to clear our mortgage (only £2k balance at 4%) but I just wanted to check whether there is any benefit on keeping it open. One old reason was to store the title deeds which I guess are now electronic. Are there other benefits though, like maintaining credit history etc?

YES!

If there is a mortgage, even a tiny one, it becomes MUCH more difficult for scammers to steal your house.

There have been at least two threads on here about how it is done, but right now I can't find either!

[neversay]

Thanks @Mike4.

Just looking at this: https://hmlandregistry.blog.gov.uk/2023 ... erty-safe/

It mentions a 'Form LL restriction' on the property register to prevent transfers. Surely this is better than just keeping a mortgage for that purpose alone.

[Mike4]

Thanks @Mike4.

Just looking at this: https://hmlandregistry.blog.gov.uk/2023 ... erty-safe/

It mentions a 'Form LL restriction' on the property register to prevent transfers. Surely this is better than just keeping a mortgage for that purpose alone.

Easily defeated. You really need to find those threads!

[neversay]

Ok, I assume you mean these:

viewtopic.php?f=2&t=42929&p=656342&hilit=mortgage+fraud#p656342

viewtopic.php?p=454449#p454449

I guess I should leave about £1k on there for the time being then!

[Mike4]

Ok, I assume you mean these:

viewtopic.php?f=2&t=42929&p=656342&hilit=mortgage+fraud#p656342

viewtopic.php?p=454449#p454449

I guess I should leave about £1k on there for the time being then!

Yep them's the ones!

At least read them carefully and grasp how it is done, then decide what to do about the risk.

And listen to the BBC programme about it, although it never really pins down the mechanics of the fraud IIRC.

[neversay]

Will do. Thanks!

[Adamski]

Properties most at risk are empty houses, where person is living abroad. The scammer would intercept the post, the reason for stealing identity and putting property in their name is to would be looking to sell the house and realise the proceeds. Personally think the risk is low if you're living in the house.

One reason why you may wish to repay mortgage is you'll have peace of mind knowing you own the outright, and it'll be simpler to sort out for your loved ones when you die.

[Mike4]

Properties most at risk are empty houses, where person is living abroad. The scammer would intercept the post, the reason for stealing identity and putting property in their name is to would be looking to sell the house and realise the proceeds. Personally think the risk is low if you're living in the house.

I think it might be even easier were the scammer (or scammer's mate) to actually rent the house and live in it while conducting the scam. Renting an un-mortgaged house strikes me as an elevated risk.