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Pay off mortgage but maintain a nominal balance?
happyhappydays
Posts: 19 Forumite
Next month I will be paying off my mortgage but I fully expect that at some point in the future I will move to another more expensive house and therefore require a mortgage again. This raises the problem that if I use up the vast majority of savings now to pay off the mortgage my mortgage company (Nationwide) have said that when I come to ask for another mortgage they will treat me as a new customer and therefore require a 10% or even 25% deposit. I was therefore thinking of paying off all of my existing debt except for £1 and changing my mortgage into a 'nominal mortgage' which apparently means I will be classed as an existing borrower and therefore it will be much easier to get a future mortgage. Have any other MoneySavers faced this problem and what did you do? All ideas/suggestions welcome. Thanks.
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